The Genex Power Ltd (ASX: GNX) share price jumped higher on news the company has started early work on the Kidston K2-hydro project.
At the time of writing, the Genex share price is trading up 12.82% at 22 cents.
Why did the Genex share price move?
The power generation company advised it has started an early works program on its K2-hydro project in North Queensland after entering an agreement with Powerlink.
The deal will see Powerlink develop a new 275kV transmission line connecting the K2-Hydro project to the national electricity market (NEM), which it will then own and operate.
In preparation for the project’s construction phase, Genex has also started works associated with the Oaks Rush construction camp. The company will revamp the camp design for use as accommodation for up to 500 people during the construction phase, as well as longer term accommodation for employees.
Genex is also refurbishing the Kidston Airstrip, which it has leased from the Ethridge Shire Council to support the K2-Hydro construction.
What’s the K2-Hydro project anyway?
K2-Hydro is the flagship project of the Genex-owned ‘Kidston Clean Energy Hub’. It’s basically a hydroelectric project that utilises two existing mining pits (Wises and Eldridge), as the upper and lower reservoirs.
Given the significant potential water head differential that the pits offer, and the vast quantity of water the pits can hold, the project can support 2,000MWh of continuous power generation in a single generation cycle.
Power generated will be sold directly into the NEM.
About the Genex share price
After today’s rise, the Genex share price has come full circle, back to where it started at the beginning of 2020.
In its full year results as at 30 June, the company reported a net loss of $10.5 million, compared to a loss of $5.5 million in FY19.
Genex commands a market cap of $112 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Here’s why the Genex (ASX:GNX) share price has jumped 13% today appeared first on The Motley Fool Australia.
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