Home Energy company Atlassian co-founder Scott Farquhar and his wife, Kim Jackson, decide to acquire energy company Genex Power

Atlassian co-founder Scott Farquhar and his wife, Kim Jackson, decide to acquire energy company Genex Power

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But Genex Power – which has long been a darling of renewable energy advocates and has received strong taxpayer support – has endured painstaking capital raising to develop the projects and the consortium believes taking the company private would allow it to accelerate its growth.

“We have been a supportive shareholder of Genex and believe that long-term private capital can help the company reach its full potential. We see strong promise in the Genex portfolio and together the Skip Essential Infrastructure Fund and Stonepeak bring the experience and knowledge to enable Genex to play a much bigger role in Australia’s energy transition,” Ms. Jackson said.

Genex owns the operating 50MW Kidston Solar Project in Queensland, is building (and has financed) a 250MW pumped storage hydro project of the same name, and is developing a 150MW wind farm, among a handful of other projects.

Importantly, for infrastructure-conscious tire-throwers, its flagship 250MW Kidston pumped hydro storage project is backed by a 10-year contract with Energy Australia, with two 10-year options to extend in favor of the retailer. of electricity.

These kinds of projects have long been coveted by potential buyers, but the election of the Labor government has thrust renewable infrastructure companies into the limelight.

Speculation about Genex was stirred last year when Japanese giant J-Power took a 10% stake, having already signed a deal to build the group’s hydropower project and helped finance a new wind project.

Genex moved quickly to appoint Goldman Sachs as advisers to bolster its defenses.

The Australian Financial Review revealed last year that the Kidston project received more public funding than its total capital cost.

This included a $610 million loan from the Northern Australian Infrastructure Facility as well as $47 million from the Australian Renewable Energy Agency.

ARENA also agreed to convert an earlier loan of $9 million into a full grant that does not need to be repaid, effectively bringing ARENA’s grant funding to $56 million.

There was also $54 million in debt financing from the Clean Energy Finance Corporation for the nearby 50 megawatt solar farm, which is attached to the pumped hydro project.

The Queensland Government – ​​which is trying to achieve a target of 50% renewable energy by 2030 – is also funding and building the 186 kilometer, $147 million transmission line connecting the Kidston project to the power grid.

It also received an off-take agreement of up to 30 years from EnergyAustralia.

Albania’s new Labor government has made accelerating renewable energy production a central part of its political agenda. It has set an ambitious target for zero-emission sources to make up more than 80% of Australia’s electricity mix by 2030, which would see the country meet its net-zero emissions target by 2050.

The issue of power generation has recently been thrust into the national spotlight amid warnings of power outages in major Australian cities. The most feasible solution involves the development of a capacity mechanism that would ensure sufficient generation capacity.