ASX renewables small cap Genex is linking up with Tesla

Junior renewables stock Genex Power Limited (ASX:GNX) has inked a supply agreement with Tesla Motors Australia for the Bouldercombe Battery Project in Queensland, supporting its rapid progress to financial close.

Set to be developed using Tesla’s Megapack lithium-ion battery technology, which has a product lifespan and warranty of 20 years, the 50MW/100MWh battery will comprise of 40 Megapacks and will be fully operational in the first half of 2023.

Megapack is an all-in-one utility scale energy storage system optimised for cost and performance, with each Megapack fully assembled and shipped from Tesla’s Gigafactory in Nevada in the States.

Among the first standalone battery storage systems in QLD

Genex is working to complete the grid connection process with Powerlink Queensland and plans to take the Bouldercombe project to a financial investment decision in the coming months, ahead of financial close expected in Q4 2021 or early Q1 2022.

With the grid modelling pack finalised and submitted to Powerlink in Q3 2021, the electricity generation company expects to receive the offer to connect in Q4 2021.

GNX CEO James 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 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,” he said.

“The Bouldercombe Battery Project is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland and will be constructed adjacent to Powerlink’s Bouldercombe substation, having received development approval from Rockhampton Regional Council in May 2021.”

Genex selected Tesla as its preferred battery supplier and integrator on the basis of their strong technical and commercial offering as well as their experience in the Australian energy storage market.