Genex Power’s Future in Renewable Energy
Genex Power, an Australian company seeking to repurpose two abandoned gold pits in eastern Australia into a renewable-energy generator, has caught the attention of Japan’s Electric Power Development, also known as J-Power. The indicative bid proposal from J-Power values Genex’s equity at approximately 380.9 million Australian dollars (US$248.6 million). This has prompted Genex to allow J-Power to conduct a thorough review of its financials to potentially formalize the offer of A$0.275 per share in cash.
A Potential Takeover
In addition to the primary bid, J-Power has put forward a contingency plan to acquire Genex Power if a sufficient number of the company’s shareholders do not support the initial offer. The back-up proposal includes a slightly lower cash offer of A$0.270 per share and is dependent on obtaining backing from at least 50.1% of Genex’s stockholders.
The Revival of Pumped-Storage Hydropower
Genex is part of a global trend where companies are revitalizing interest in pumped-storage hydropower, an age-old technology, as a means for countries to diminish their reliance on coal.
Innovative Energy Solution
The technology behind this innovative energy solution essentially functions as a giant battery, utilizing water and gravity as its energy sources. Water is pumped uphill to a reservoir during times of plentiful energy supply. It is then released to flow downhill through turbines, generating much-needed hydroelectric power during peak electricity demand or when there are shortages in other power sources. Finally, the water is captured and the cycle begins anew.
Utilizing Abandoned Mines for Renewable Energy
Surface and underground mines are being explored as potential reservoirs for this water, offering a development opportunity with lower environmental impact and upfront costs compared to building entirely new plants from scratch, according to experts.
Reviving Abandoned Gold Pits
Genex is spearheading an ambitious project involving the connection of two abandoned gold pits near Kidston in Queensland. This pumped-storage initiative would mark the first operational project of its kind in Australia in close to four decades.
Powering Homes for Decades
With plans to integrate a 250-megawatt facility into the grid by late 2024, Genex aims to generate enough energy to power approximately 143,000 homes for an impressive eight-hour duration. The plant is projected to operate efficiently for a lengthy 80-year lifespan, with a estimated total construction cost of around US$500 million.
Strategic Investment
J-Power, holding 7.72% of Genex’s shares, recently made an offer to acquire the company, proposing A$0.240-a-share in cash. However, Genex deemed this offer too low and declined the proposition.
Partnership with Japanese Company in Australian Renewable Energy Projects
The Japanese company is a key development partner of Genex in its Kidston Stage 3 wind project and Bulli Creek solar and battery projects in Australia. In addition, they have provided approximately A$35 million in funding to Genex in order to support the advancement of their project pipeline.
