Genex Power has agreed to let Fortescue delay a final investment decision for its Gibson Island green hydrogen and ammonia project from the end of February to the end of March.
The extension is the second time Fortescue has pushed back its final decision on the project, announcing in December it had moved the deadline from the end of that month to 28 February 2024. The companies will now have until 31 March 2024 to complete a final financial investment decision.
The parties have also agreed to extend the sunset date for achieving financial close on the proposed 2 GW multi-stage Bulli Creek solar and battery project being developed by Genex in Queensland’s southeast to 30 April 2025.
Genex and development partner J-Power, with Solar Choice as a co-developer, are developing the Bulli Creek solar and battery project in Queensland for an offtake for up to 337.5 MW of solar energy to Fortescue.
The power purchase agreement represents about 20% of the renewable power Fortescue needs under its plans to produce up to 70,000 tonnes of green hydrogen at Gibson Island annually, which will then be used to produce up to 400,000 tonnes of green ammonia each year for export.
The deal with Fortescue, first announced in October 2023, will enable Genex to commit to the first solar stage development at Bulli Creek at a minimum capacity of 450 MW, with the deal providing a 75% contracted revenue stream.
Genex said in addition to the Fortescue deal, the company is also continuing discussions with other parties for further solar offtake which would allow the initial capacity of the project to be increased to up to 775 MW.
Genex said it expects those discussions will conclude and the size of the Bulli Creek project will be confirmed by mid-2024 which will support the target of a final investment decision for the first stage of the project later this year.
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