Takeover target Genex beefs up energy storage prospects

Genex Power

10/08/2022 01:54

By Sonali Paul
    MELBOURNE, Aug 10 (Reuters) - Australia's Genex Power
 GNX.AX , which last week rejected a takeover offer, said on
Tuesday it has agreed to acquire development rights to a
large-scale battery and solar farm project it hopes to start
building in late 2024.
    Genex did not disclose the price it paid private firm Solar
Choice for the rights to develop what could eventually be a 2
gigawatt (GW) energy storage project, to be built in five
stages, at Bulli Creek in the state of Queensland.
    Chief Executive Officer James Harding told Reuters the
pricetag was in line with standard market terms, without
elaborating.
    The first stage is a proposed 400 megawatt/1,600 megawatt
hour (MWh) battery energy storage project, which would add to
Genex's pumped hydro project and another, much smaller battery
project under construction. 
    "We have commenced discussions with potential joint
development partners," Harding said in a statement.
    The company is the only pure-play renewable energy and
storage firm listed on the Australian bourse at a time when the
country is pushing to speed up the transition from a
coal-dominated grid to wind and solar, backed up by energy
storage.
    Harding declined to comment on whether Genex has entered
talks with its rebuffed suitors Skip Essential Infrastructure
Fund and Stonepeak Partners LLC, who offered A$319 million 
($222 million), but reiterated the company was "open for
discussions with them". 
    He also said he was not at liberty to say whether any other
potential bidders had approached the company.
    Genex shares fell 2.3% to A$0.215 in early trade on
Wednesday, holding below the rejected offer price of A$0.23 a
share.
 ($1 = 1.4397 Australian dollars)

 (Reporting by Sonali Paul; Editing by Lincoln Feast.)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523;))