Australia’s Genex Power Ltd (ASX:GNX) has secured a power purchase agreement (PPA) for half of the output of its 258-MW Kidston Stage 3 wind project (K3W) in Queensland.
The 15-year deal was signed with Brisbane-headquartered electricity and energy solutions provider Stanwell Corporation, Genex said in a bourse filing on Friday. The contract calls for Stanwell to buy 50% of K3W’s generation at a fixed price, plus the large-scale generating certificates.
The agreed price is subject to annual escalation based on changes in the consumer price index, with an annual cap. A condition precedent for the new deal is the financial close of the K3W, which is expected to be achieved by December 31, 2024, Genex said.
The PPA with Stanwell adds to another contract with EnergyAustralia Pty Ltd, which in October committed to procuring 30% of K3W’s output. With the two PPAs in place, Genex will start working on the project’s debt funding and will aim to take a final investment decision in 2024.
K3W is part of the Kidston Clean Energy Hub, which includes a 50-MW operational solar park and a 250-MW pumped storage hydro project. The site was also planned to house a 270-MW solar park (Kidston Stage 2 Solar) but its development will no longer be pursued as Genex will use the remaining available capacity of a new 185-km transmission line and related network infrastructure.
K3W is being developed by Genex in a 50:50 partnership with Japan’s Electric Power Development Co, operating as J-Power.