Genex Power (ASX:GNX) share price is sinking today despite project milestone

It appears the Genex share price is running low on energy this morning despite positive news…

| More on:
Man in mining or construction uniform sits on the floor with worried look on face

Image source: Getty Images

Key points

  • The Genex share price is down today, and has dropped 24% in 12 months
  • The energy utility company has hit a construction milestone at its K2-Hydro project
  • Today’s announcement indicates the project is on track for use in Q4 2022

The Genex Power Ltd (ASX: GNX) share price is down today, but that doesn’t mean its operations are.

This morning, the clean energy generation company announced it had made ground-breaking progress with the construction of its flagship Kidson project.

At the time of writing, the Genex share price has fallen 2.63%, trading at 18.5 cents apiece.

Let’s take a closer look…

K2-Hydro construction on-track

The 250MW Kidson Pumped Storage Hydro Project, or K2-Hydro for short, is the flagship project of Genex’s Kidson Clean Energy Hub in far north Queensland.

Once constructed, it will be the third-largest electricity storage device in the country — with a capacity of 2,000 megawatt hours [MWh] — producing and delivering on-demand renewable energy during high periods.

With a totally-funded construction cost of $777 million, its the first of its kind to be privately developed, according to the company, and will have an overall lifespan of 80 years.

In this morning’s announcement, Genex Power advised that the project’s construction was on track, with a chunk of the to-do list already checked off ahead of schedule.

Major construction in the main access tunnel has been underway over the past two months. Now, the company has pushed ahead with two manned shifts per day delivering round-the-clock underground tunnelling.

This will progress the construction stage by 8 metres per day for the next 6 months — pushing towards the project’s goal of first power generation by the fourth quarter of 2024.

What did management say?

Commenting on the update, Genex CEO James Harding said:

Following an intense period of site establishment and preparation works, I am delighted that the EPC Contractor JV of McDonnell Dowell and John Holland has formally commenced the underground excavation works for the Kidson Pumped Storage Hydro Project.

This represents a significant milestone in the project construction timeline which was achieved ahead of schedule.

We look forward to working alongside the EPC JV and keeping the market updated as the program continues to push ahead over the course of this year.

Genex share price snapshot

The Genex share price has seen a volatile 12 months, dropping overall by almost 21%.

In late November, the Genex share price saw its 52-week-low of 18 cents, though no company news was released.

The company has a market capitalisation of $197 million at the time of writing.

Should you invest $1,000 in Genex Power right now?

Before you consider Genex Power, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Genex Power wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A man and a woman sit in front of a laptop looking fascinated and captivated by ASX shares news articles especially one about the Bannerman Energy share price
Energy Shares

Here’s why AGL shares hit the headlines again on Friday

As billionaire Mike Cannon-Brookes continues his campaign against the proposed demerger, shares in AGL closed higher today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Energy Shares

Why is the Woodside share price dropping 4% today?

Woodside shares are ending the week in the red...

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

Why are ASX coal shares charging higher again today?

The global energy crisis has pushed coal prices to all-time highs.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Energy Shares

Here’s why the Beach Energy share price is sliding again on Friday

What's going wrong for the oil and gas producer today? We take a closer look.

Read more »

A green-caped superhero reveals their identity with a big dollar sign on their chest.

How soon can Fortescue start making money from green hydrogen?

Green hydrogen comes from splitting water molecules into their elemental parts.

Read more »

A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.
Energy Shares

New or old energy: Have oil producers bested ASX lithium shares?

Which has been the better investment in the last year? We take a look.

Read more »

A woman stretches her arms into the sky as she rises above the crowd. representing the Strike Energy share price rising today while the rest of the market crumbles
Energy Shares

Here’s why the Strike Energy share price is avoiding the bloodshed today

Strike Energy shares are in positive territory today while the broader ASX market slumps.

Read more »

Woman in office sinking in quicksand into the floor
Energy Shares

Why is the Beach Energy share price sinking 5% on Thursday?

What's going on with the Beach Energy share price? We take a look.

Read more »