The Genex Power Ltd (ASX: GNX) share price is up over 5.5% today and currently trading at 28 cents.
Genex Power is focused on developing a portfolio of renewable energy generation and storage projects across Australia.
The company’s flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro.
Genex share price pumps after company locks in funding
The Genex share price bumped up after the company confirmed that the Queensland Government is going to provide a $147 million funding package.
The funding will go toward the construction of a new 275kV single circuit, 185.9km transmission line from Kidston to Mt Fox, and a new substation at Mt Fox.
The new infrastructure will facilitate the connection of the company’s Kidston Pumped Storage Hydro Project to the national electricity market.
Powerlink Queensland will build, own, and operate the project, which is expected to support over 400 new jobs during construction. The funding package will be advanced directly to Powerlink.
Positioning for future growth
Genex believes that the new transmission infrastructure will underpin fresh potential for future sustainable energy projects.
The company stated that the transmission line will facilitate the creation of a new renewable energy zone in north Queensland, which is a location that’s abundant with strong wind and solar resources.
Genex CEO James Harding commented:
The Transmission Line will support not only our flagship Kidston Pumped Storage Hydro Project, but the broader Kidston Clean Energy Hub including the Kidston Stage 3 Wind Project and the Kidston Stage 2 Solar Project, with the creation of a new North Queensland Renewable Energy Zone.
The funding package announced today is $15 million more than the original $132 million package offered by the Queensland Government in September 2020.
Over the past 12 months, the Genex share price has climbed more than 28%.
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Motley Fool contributor Gretchen Kennedy 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.
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