Herbert Smith Freehills has advised Genex Power Pty Limited (Genex Power) on the development, offtake arrangements and project financing of the Bouldercombe BESS (battery energy storage system) project (Project), to be located in Bouldercombe, Central Queensland, which achieved financial close on 28 February 2022.
The Project is a stand-alone 50MW/100MWh lithium-ion battery energy storage system that will have the capability to export and import electricity to and from the National Electricity Market and provide ancillary services to support its stability and reliability. It will be one of the first of its kind in Queensland and will be located adjacent to Powerlink’s Bouldercombe Substation.
Tesla has been engaged to supply, deliver and operate the battery system, and has entered into a long-term revenue sharing arrangement with the project company. Consolidated Power Projects has been engaged to carry out the balance of project works. Infradebt is providing long term project financing to the Project, in one of the first Australian battery projects to be project-financed, and what is believed to be the first on a split-procurement basis.
The Herbert Smith Freehills team was led by partners Kristen Percy, Peter Davis and Elizabeth Charlesworth, who were supported by executive counsel Amelia Fleming, senior associates Michael Trent, Arnica Mullins and Sam Cooper, and solicitors Antonia Xu and Julia Hollis.
Peter Davis said: “The implementation of an offtake arrangement for batteries that provides a bankable level of contracted revenues while preserving the project’s access to significant merchant upside has been an exciting development in this sector”.
Elizabeth Charlesworth added “We’ve been delighted to work with Genex Power to secure innovative financing for this Bouldercombe BESS project, helping them to continue to expand and develop their diverse portfolio of projects delivering renewable energy to the Australian market. The high level of interest in the project demonstrates a continuing and strong commitment from the industry to develop and grow the Australian renewable energy sector”.
HWL Ebsworth advised Infradebt as lender to the project.
This deal is another example of Herbert Smith Freehills’ market-leading work in the renewable energy sector. The Renewable Energy, Project and Project Finance teams have recently advised:
- The Clean Energy Financing Corporation on the financing of the Australian-first electrified bus fleet and associated battery and charging infrastructure being developed by a joint venture between Zenobe and TransGrid.
- Synergy in connection with the procurement of its 100MW/200MWh BESS to be constructed in Kwinana, Western Australia.
- the financiers to Powering Australian Renewables (PowAR) in relation to its NZ$3.07 billion acquisition of Tilt Renewables Ltd.
- RES Australia on the development, offtake, project financing and sale of the 180MW Dulacca Wind Farm.