The Agreement ensures the purchase of 50% of the Project’s wind energy and large-scale generating certificates at a fixed price for 15 years beginning with the start of operations. The fixed price is subject to annual escalation based on changes in the consumer price index, with an annual cap.
The agreement outlines typical conditions for such agreements, including the financial close of K3W by 31 December 2024.
Stanwell’s involvement in the Kidston Wind Project, a long-term offtake arrangement with EnergyAustralia Pty Ltd, strengthens the project’s credibility. This agreement will enable Genex and J-POWER to begin debt financing for the Kidston Wind Project, with a final investment decision in CY2024. The combined offtake from Stanwell and EnergyAustralia, 80% of the project’s output, will secure a significant debt facility for construction costs.
Genex has confirmed that K3W will be the next stage of the Kidston Clean Energy Hub, using the remaining capacity of the new 185km transmission line and network infrastructure for the 250MW Kidston Pumped Storage Hydro Project. This means that Genex will no longer pursue the proposed 270MW Kidston Stage 2 Solar Project as a priority at Kidston. Genex will continue to operate its 50MW Stage 1 Solar Farm at Kidston.
Genex CEO Craig Francis said Stanwell’s offtake agreement marks a milestone for the Kidston Wind Project, the third stage of the Kidston Clean Energy Hub, which integrates wind, solar, and pumped storage hydro technologies at a single site.
“Securing Stanwell as the majority off-taker for the Project, a highly reputable entity, underscores the appeal of the generation profile of the Project and Genex’s track record in successful delivery of large and complex renewable energy and storage projects. Genex and J-POWER are delighted to be working alongside Stanwell for the Kidston Stage 3 Wind Project and are appreciative of the strong and continued support of the Queensland Government for the Kidston Clean Energy Hub. This agreement secures Kidston’s place in Stanwell’s renewable energy pipeline and contributes to Stanwell’s strategic goal of transforming its portfolio, whilst supporting the objectives of the Queensland Energy and Jobs Plan,” Francis stated.
“The agreement with Stanwell provides long-term revenue certainty, which will underpin a substantial project finance facility for construction of the Project. Genex and J-POWER will shortly be commencing engagement with lenders as part of this process as we continue to advance the Project toward a final investment decision in 2024.”