Genex Power Limited (ASX: GNX) (Genex or the Company) provides an update on the 25-year solar power
purchase agreement (PPA) which was signed with a wholly owned subsidiary of Fortescue Ltd
(Fortescue) (ASX: FMG) for the up to 2GW Bulli Creek Solar and Battery Project (BCP).
The BCP is being developed by Genex in partnership with Electric Power Development Co., Ltd (JPOWER), with Solar Choice Pty Ltd as co-developer.
Lapse of Buyer Condition Precedent
As announced on 9 October 2023, a wholly owned subsidiary of Genex entered into a 25-year PPA with
Fortescue for 337.5MW of capacity from a large-scale first stage solar farm at the BCP (BCS). Fortescue
intends to utilise the solar energy procured under the PPA for the operation of a green hydrogen and
green ammonia facility in connection with its Gibson Island project (Gibson Island).
The PPA contains typical conditions precedent for an agreement of this nature, including financial
close of the BCS by 31 December 2024, as well as a buyer condition precedent for Fortescue to reach a
final investment decision in respect of Gibson Island by 31 December 2023. Following an initial
extension of these dates in December 2023 and February 2024, these were subsequently extended to
30 April 2025 and 31 March 2024 respectively.
Genex today advises that the buyer condition precedent has not been satisfied or waived by the revised sunset date of 31 March 2024 and it has therefore allowed the revised sunset date to lapse, which
triggers a termination right under the PPA for either party. Notwithstanding this, the PPA remains on foot in accordance with its terms, which will require the buyer condition precedent to be satisfied or
waived before Genex can proceed to financial close for BCS. Genex continues to support Fortescue as needed, as it works toward satisfying the buyer condition precedent as soon as possible. see & read more on
https://cdn.fortescue.com/docs/default-source/announcements-and-reports/2702723.pdf?sfvrsn=7725139a_6