Genex Power is edging towards financial close for its 50MW/100MWh Bouldercombe Battery Project at Rockhampton after lining up a $35 million debt facility with Infradebt.

The debt facility follows positive developments including an offtake agreement with Tesla Motors Australia and the connection agreement with Powerlink Queensland.

In addition to the receipt of final credit approvals, Genex has executed a cooperation agreement with Infradebt that will see the parties continue to work together to finance further battery energy storage projects in Australia.

Related: Tesla to run Rockhampton’s big battery

“We are extremely pleased to have reached an agreement with Infradebt for the $35m debt facility
for the Bouldercombe Battery Project,” chief executive officer James Harding said.

“The debt facility allows Genex to retain upside exposure to the attractive economics of energy storage and maximise the economic returns of the project, which was an important factor when we considered the appropriate level of gearing and counterparty for the project.

“The cooperation agreement provides a mechanism to facilitate future cooperation between Infradebt and Genex as we continue to expand our battery portfolio, allowing us to retain upside through innovative offtake arrangements while continuing to maximise leverage and project economics.

“We look forward to closing out the final workstreams with Infradebt and our other project
stakeholders to take the project to financial close shortly.”

The Bouldercombe Battery Project is to be constructed adjacent to Powerlink’s Bouldercombe substation, having received development approval from Rockhampton Regional Council in May 2021.