Shares of Genex, a power generation company, were halted today as the company announced plans to conduct a $ 19.2 million capital outlay to finance the development of the Jemalong Solar Project near Forbes in NSW.
Genex has acquired the rights to develop the 50 MW Jemalong Solar Project from Vast Solar last year and will use the funds to complete construction of the project after completion of the Kidston solar pumped power project in Queensland.
Genex will offer $ 16.2 million in shares to new shareholders under the offering, and existing shareholders will also have the opportunity to buy up to $ 15,000 of new shares in a separate stock purchase plan that will raise $ 3 million additional.
The capital increase will be combined with $ 12.5 million of Genex's existing cash reserves to fully fund Genex's capital contributions to the Jemalong project.
Vast Solar has developed an initial 1MW pilot plant for thermal solar storage and concentrated sodium as part of a demonstration project supported by ARENA. The plan was to expand the pilot with a hybrid solar thermal and solar photovoltaic system, which would have been combined with storage of solar thermal energy and battery.
Since then, the company has sold the rights to the Jemalong ready-to-dig project to focus on developing its solar thermal technology.
The Jemalong Solar project will double Genex's existing renewable energy portfolio, along with the first 50MW stage of the Kidston solar project, which began last year.
Genex expects the project to double the company's revenues from 2020, generating additional revenue of $ 13 million to $ 15 million when fully operational.
UGL was contracted to provide EPC services to the project, the company having previously worked with Genex at the completion of stage 1 of the Kidston project and will provide EPC services for stage 2 expansion.
Genex plans to expand the Kidston project, which combined large-scale solar development with a large-scale pumped hydropower storage facility established within an old gold mine. Stage 2 of the Kidston project is currently under development and will provide 250MW of pumped hydroelectric power storage capacity, with up to 8 hours of stored energy (2,000MWh).
The hydro pump project will reuse two wells at the Kidston abandoned gold mine, taking advantage of the height difference between the two wells to establish reservoirs with a height differential of up to 218 meters. The water will be pumped between the wells, allowing the stored energy dispatched from Kidston's solar farm.
Genex has previously secured a $ 516 million loan from the federal government provided by the Northern Australia Infrastructure Facility (NAIF) for the second stage of the Kidston project.
The loan for the NAIF pumped hydrocarbons project came as a surprise, after immense scrutiny by the fund, and speculation that it would be used by the coalition government to fund a new coal generator in Queensland or even Adani coal. my.
It was a busy month raising funds for Genex, with the company announcing in early June that it had sold a $ 25 million stake in the Japanese company to J-Power with the collection to completion of Kidston's stage 2. -hydro storage design.
A planned stage 3 of the Kidston project will see the addition of 150MW of co-located wind power generation at the site of solar power and hydraulic pump. The stage 3 project is currently undergoing a feasibility assessment.
Genex will offer up to 67.4 million new shares of the company, at an offer price of 24 cents per share. Genex shares closed at 27 cents a share before the commercial stoppage was announced.
The first generation of the Jemalong solar farm is expected for 2020, and will be sold to the National Electricity Market as a commercial generator / spot market.