Genesis Energy (ASX:GNE) Explores Continuation of Huntly Power Operations
Strategic Collaboration
Genesis Energy, along with Mercury, Meridian, and Contact, has entered a non-binding agreement to explore options for extending the operation of Huntly Power Station Rankine Units. This initiative aims to support national energy security by managing ‘dry-year risk’ and integrating more intermittent wind and solar generation into the grid.
Market Conditions and Future Outlook
The collaboration responds to the energy supply challenges experienced in winter 2024, caused by a decline in natural gas supply, low hydro lake levels, and reduced wind conditions. The group is assessing commercial structures, including pricing and cost, and may establish a strategic fuel reserve to mitigate fuel supply disruptions. The proposed arrangements could be operational by 2026, pending regulatory approvals.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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