Genex Power Limited (ASX:GNX) has executed a Supply Agreement (Supply Agreement) with Tesla Motors Australia Pty Ltd (Tesla) for the Bouldercombe Battery Project (BBP).
Execution of the Supply Agreement with Tesla represents a major milestone for the BBP which will support the company in rapidly progressing the Project to financial close.
Following the completion of a tender process, in August 2020 the company selected Tesla as its preferred battery supplier and integrator on the basis of their strong technical and commercial offering, their extensive experience in the Australian energy storage market and the market leading Autobidder market dispatch technology.
Following the execution of the Supply Agreement, the Project is confirmed to be developed using Tesla’s Megapack lithium-ion battery technology which has a product lifespan and warranty of 20 years. Megapack is an all-in-one utility-scale energy storage system optimised for cost and performance, with each Megapack fully assembled, factory tested and shipped from Tesla’s Gigafactory in Nevada, USA.
Genex CEO, James Harding, said the 50MW/100MWh battery will comprise of 40 Megapacks and will be fully operational in the first half of CY2023.
Genex is working closely with its stakeholders to conclude the outstanding workstreams to take the BBP to a Final Investment Decision (FID) and financial close in the coming months. These include:
- Grid Connection: Genex and its grid connection consultants have been working closely with Tesla in recent months to complete the grid connection process with Powerlink Queensland. The grid modelling pack was finalised and submitted to Powerlink in Q3 CY2021, and Genex expects to receive the Offer to Connect in Q4 CY2021.
- Offtake: Genex is in advanced negotiations with an offtake partner and is looking to conclude its offtake arrangements, concurrent with project financing activities, in the coming months; and
- Project Financing: Genex is working with its preferred lenders to the Project to finalise due diligence and loan facility documentation in line with the timeline for financial close.
Genex is pleased to have executed the supply agreement with Tesla for the Bouldercombe Battery Project,” Mr Harding said.
“This is a key milestone in the Project’s development and one the Company has been working towards since Tesla’s appointment as the preferred supplier and integrator in 2020. The Project is Genex’s first large-scale Battery Energy Storage System and is part of our Como strategy to broaden our footprint in energy storage.”
The Bouldercombe Battery Project is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland. The Project is to be constructed adjacent to Powerlink’s Bouldercombe substation, having received development approval from Rockhampton Regional Council in May 2021.
Negotiations with Powerlink on the connection terms are well advanced, and we expect to receive an Offer to Connect within the next couple of months, which should enable us to proceed to FID and financial close in Q4 CY2021/Q1 CY2022.
The development of our Battery Storage strategy in conjunction with our pumped hydro project and operating solar energy assets further positions Genex as the leading Australian renewable energy and storage company.”