Genex Power signs offtake agreement with Tesla

  • Genex Power (GNX) pens an offtake agreement with Tesla Motors Australia for the Bouldercombe Battery Project in central Queensland
  • Under the agreement, Tesla will operate the project using its algorithm-based bidding system, Autobidder, which is designed to maximise the project’s revenue
  • After eight years, Genex will enter into a license agreement with Tesla to operate Autobidder on the project
  • The deal follows a supply agreement signed in October for Tesla to provide the project with 40 Tesla Megapacks
  • Genex Power last traded at 19 cents on December 8

Genex Power (GNX) has penned an offtake agreement with Tesla Motors Australia for the Bouldercombe Battery Project in central Queensland.

Under the offtake agreement, Tesla will operate the project using its proprietary algorithm-based bidding system, Autobidder.

Autobidder is a real-time trading and control platform that uses a machine-learning algorithm to reportedly optimise dispatch behaviour while adapting to new markets and services. Autobidder is currently operating at Hornsdale Power Reserve (HPR) in South Australia.

The platform is hoped to maximise the revenue of the project during each given year.

The autobidder offtake agreement offers a fixed and floating payment structure.

Genex said the fixed component extends cash flow certainty to the project lenders, while the floating revenue share component allows it to retain upside revenue exposure to merchant cash flows from the energy arbitrage and frequency control ancillary services markets.

After eight years, once the agreement has concluded, Genex will enter into a license agreement with Tesla to operate Autobidder on the project.

The deal follows a supply agreement signed in October that agreed to see Tesla provide the project with 40 Tesla Megapacks, an all-in-one utility-scale energy storage system optimised for cost and performance.

James Harding, Genex Chief Executive Officer, said the company is extremely pleased to have signed the Autobidder offtake agreement with Tesla after the execution of the Megapack supply agreement.

“The unique integration of Tesla’s Megapack battery technology and a revenue sharing arrangement utilising Autobidder will reduce the complexity of the project,” Mr Harding.

“Importantly the structure of the Agreement provides a minimum level of contracted revenues to support project funding, while allowing Genex to retain significant merchant upside.”

Read more at The Market Herald

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