The Company presentation on 24th Oct indicated that the focus was on 250MW - 450MW with feasibility study concluding the design optimization with regard to capital efficiency per installed MW. They have achieved that according to their timeline. Construction costs now just to be finalized. Financial close was indicated in the presentation on 24th Oct for the 3rd Quarter 2017 as opposed to the recent announced 4th Quarter. Seems they are on well on target. In saying that, it does seem a bit hazy to what the intention is with regard to the following:
"As part of the TFS, a number of project size options were developed ranging between 250MW to 450MW. Genex, in conjunction with its consultants, undertook detailed market studies to assess the pricing and revenue impacts of each of the options. It was determined that a 250MW (configured as 2 x 125MW reversible pump-generators) scheme with 6 hours of continuous generation, totalling 1,500MWh of energy storage capacity, would be the optimal size given the Project’s location and forecast characteristics of the NEM in Queensland and Australia.
A 250MW rapid response hydro scheme was deemed to be sufficiently flexible to take full advantage of market volatility opportunities. It should be noted that the overall design general arrangement of the scheme would remain unaltered regardless of the Project size, and as such the Project size remains flexible to changes as Genex proceeds towards financial close."
Does the statement suggest that if they get the right financial deal then they will proceed to increase the size of the project from the current 250MW?
GNX Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
