Genex Power Limited subsidiary K3W Project Co. Pty Ltd and EnergyAustralia Pty Ltd have signed a 10-year power purchase agreement (PPA) for the 258MW Kidston Stage 3 Wind Project.
The PPA is the second offtake agreement Genex has signed with EnergyAustralia, following the execution of the Energy Storage Service Agreement for the 250MW Kidston Pumped Hydro Project in 2020.
According to the company, the Agreement highlights EnergyAustralia’s growing partnership with Genex and its commitment to the Kidston Clean Energy Hub.
“The execution of this power purchase agreement with EnergyAustralia represents a significant milestone for the development of the 258MW Kidston Stage 3 Wind Project, the third stage of the Kidston Clean Energy Hub. Securing 30% of the offtake capacity of the Project with such a high-quality partner in EnergyAustralia, signifies a material step in mitigating project risk,” Genex CEO Craig Francis said.
“We are pleased that our partnership with EnergyAustralia has continued to strengthen with the addition of this offtake agreement, building on the foundations established in 2020 with our 30-year agreement for the Kidston Pumped Storage Hydro Project. This latest commitment by EnergyAustralia also attests to the strong track record of project delivery demonstrated by the Genex team,” Francis added.
The Agreement secures 30% of the Kidston Stage 3 Wind Project’s wind energy and large-scale generation certificates at a fixed price over a 10-year term, subject to annual escalation based on consumer price index movements. It includes typical conditions, including the project’s financial close by 31 December 2024.
“The Kidston Wind offtake agreement will bring us a step closer to our goal of up to 3GW of renewable energy committed or in operations by 2030,” EnergyAustralia Managing Director Mark Collette said.
“Both Kidston Wind and the Kidston Pumped Storage Hydro Project are important steps in delivering EnergyAustralia’s purpose to lead and accelerate the clean energy transformation for all,“ Colette stated.
Additionally, Genex is in discussions with other counterparties to determine the remaining capacity of K3W to support the Kidston Stage 3 Wind Project financing structure.
The Kidston Stage 3 Wind Project is being developed by Genex and Electric Power Development Co., Ltd (J-POWER).
“We look forward to building on this milestone alongside our partner J-POWER as we continue to de-risk the project and progress it toward financial close in 2024,” Francis said.
