Genex Power’s wholly owned subsidiary K3W Project Co has signed an offtake agreement with Stanwell Corporation for its 258MW K3W wind farm in Queensland, Australia.
Under the 15-year power purchase agreement (PPA), Stanwell Corporation will purchase 50% of the total output at K3W at a fixed price.
The Brisbane-headquartered electricity and energy solutions provider will purchase large-scale generating certificates.
With an annual cap, the agreed price is subject to annual escalation based on changes in the consumer price index.
The financial close of K3W is a prerequisite for the new agreement and is expected to be completed by 31 December 2024.
Genex CEO Craig Francis stated: “Our offtake agreement with Stanwell marks a major milestone for the 258MW Kidston Stage 3 wind project, the third stage of the Kidston clean energy hub.
“When complete, the project will complete the trifecta of wind, solar and pumped storage hydro technologies all co-located at a single site.
“Securing Stanwell as the majority offtaker for the project, a highly reputable entity, underscores the appeal of the generation profile of the project and Genex’s track record in the successful delivery of large and complex renewable energy and storage projects.”
The wind energy project is being developed under a 50:50 partnership between Genex and Japan’s Electric Power Development Co (J-POWER).
The PPA with Stanwell supplements an earlier agreement with EnergyAustralia, which committed in October to buy 30% of K3W's output.
After securing the two PPAs, Genex will begin addressing the project's debt financing to make a final investment decision by 2024.
Francis added: “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."
