Market Security Options

MARKET RELEASE

Date: 30 August 2022
NZX: GNE / ASX: GNE
Market Security Options
Genesis Energy has released a document outlining background information and an indicative term
sheet for Market Security Options referred to in Genesis’ FY22 Investor Presentation. The Market
Security Options will only be available to certain wholesale investors within the meaning of the
Financial Markets Conduct Act 2013.
The Market Security Options information document is attached.

ENDS


For investor relations enquiries, please contact:
Tim McSweeney
GM Investor Relations & Market Risk
M: 027 200 5548

For media enquiries, please contact:
Chris Mirams
GM Communications and Media
M: 027 246 1221









About Genesis Energy
Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity,
reticulated natural gas and LPG through its retail brands of Genesis and Frank and one of New Zealand’s largest
energy retailers with approximately 500,000 customers. The Company generates electricity from a diverse
portfolio of thermal and renewable generation assets located in different parts of the country. Genesis also has
a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New
Zealand. Genesis had revenue of $NZ2.8 billion during the 12 months ended 30 June 2022. More information
can be found at www.genesisenergy.co.nz

---

AUGUST 2022
1
GENESIS ENERGY LIMITED
Market
Secur ty
Options
GENESIS ENERGY LIMITED
AUGUST 2022

2
GENESIS ENERGY LIMITED
Huntly produced 819,950
MWh of electricity for
other generators so they
could meet their customers
demand when their
renewable sources could
not deliver. This was
enough to power around
120,000 homes for a year,
not quite the size of
Christchurch.
Background
New Zealand has one of the most
renewable electricity supplies in the world
with approximately 82% of our supply
coming from hydro, wind or geothermal.
Our own analysis shows that commitments
by those in the sector to build more
renewables will lift the level of renewable
electricity generation to 96% - 98% by
2030. But, as we also know, the country’s
supply is at risk when the wind doesn’t
blow, the rain doesn’t fall, and the sun
doesn’t shine. In April 2022, the Ministry
for the Environment published a report -
‘Aotearoa New Zealand climate change
projections guidance’ - that noted we can
expect different rainfall patterns and that
river flooding, drought severity and fire
weather are projected to increase in most
areas of the country. This highlights the
intermittent nature of weather dependant
renewable generation.
Huntly Power Station was built to provide
back-up supply to New Zealand’s highly
renewable electricity generation. Back-up
generation enables a highly renewable
system to work, affords the market security
of supply and supports price stability
which, until recently, was partially
contracted by market participants through
supply contracts, called swaptions. These
contracts provided generators with back-up
supply that could be relied upon to ensure
their customer demand was met. Whilst we
expect back-up generation will be required
less frequently looking ahead, it will
become increasingly important when it’s
needed as the level of renewable
generation increases.
Since 2014, Huntly Power Station has
delivered total generation of 35,689 GWh,
enough to power more than one million
homes for five years. Seven of the past nine
years have been among New Zealand’s
warmest on record and in six of those seven
years, swaptions were called on. Most
recently, in 2021, when a La Niña weather
pattern brought a long, dry summer
followed by a cold winter, and gas was in
short supply, Huntly Power Station
produced 819,950 MWh of electricity for
other generators so they could meet their
customers demand when their renewable
sources could not deliver. This was enough
to power around 120,000 homes for a year,
not quite the size of Christchurch.
As an active enabler of the country’s energy
transition, Genesis faces a unique challenge.
As a business, we are committed to
reducing emissions from our own
generation portfolio through a combination
of new renewable generation and exploring
fuel alternatives such as biomass. At the
same time, we are being relied upon to
support security of supply for the country
at times when generation from renewables
are unable to meet national electricity
demand. These considerations are central
to our Future-gen strategy. In acting to
further reduce our own generation
emissions, we have made commitments to
date for 1,940 GWh of new renewable
generation, including our push into
grid-scale solar. Genesis is targeting 81% of
our own generation to be renewable by
2030. We are also on track to meet our
Science Based Target of sustainably
reducing 1.2m tonnes of annual carbon
emissions by 2025 (measured against a
2020 base) and further reduce our annual
carbon emissions by 1.8m tonnes by the end
of the decade.
Today, the New Zealand energy markets sit
against a back-drop of changing dynamics
in the international energy and fuel markets.
It is important to consider how changes in
international markets will impact the New
Zealand market if they persist over time.
The cost of coal on the international market
has skyrocketed since the start of the war in
Ukraine. As geopolitics unfold in Europe,
coal and gas prices are expected to remain
high as a new normal. Electricity prices in
New Zealand have been cushioned to date
thanks in large part to the stockpile we hold
but that will change when we need to
replace it at current market prices.
As we transition to a more renewable
future, the Market Security Options
(MSOs) offer that we outline here provides
a product for generators, retailers and
major energy users to secure electricity
supply from the Rankine units at Huntly
Power Station, with stable pricing and in
doing so will support security of supply and
market price stability.
This document details how generators,
retailers and major energy users can express
an interest in participating in the offer.

AUGUST 2022
3
GENESIS ENERGY LIMITED
Demand
New Zealand currently faces the challenge
of needing around 7,000 GWh of deep
energy storage to deal with seasonal shifts
in demand. Existing hydro lakes provide
about 4,000 GWh of that and Huntly Power
Station fills the gap, doing the job it was
built to do. As the transition to a low carbon
future evolves, demand is expected to rise
significantly with electricity critical to
decarbonising transport and the large
commercial and industrial sectors.
Annual Electricity Demand Forecast
Supply
The level of renewable generation – solar,
wind and geothermal - is set to increase
over the next 10-15 years. Our own analysis
shows New Zealand will have 96% - 98%
renewable generation by 2030 given
commitments to new renewable builds by
the sector. Our analysis also shows we have
reached the peak in using coal for
generation and that it will decline steeply
over the next few years, in normal market
conditions. The highly renewable market
will require peaking capacity and seasonal
storage.
Approximately 1,000 MW of new wind
generation and over 900 MW of solar are
expected to be built by 2030 which will
materially increase the volatility of the
electricity spot market. Together these
represent almost 15% of current generation.
On average the new renewables will offset
existing thermal generation or new load
added to the grid but during still winter
evening peaks or dry periods there will
still be the need for other generation to
fill the gap.
The Infrastructure Commission noted in its
strategy released this year that electricity
generation capacity needs to increase by
some 170% to meet the country’s net zero
carbon goals. According to modelling from
the Climate Change Commission, national
electricity demand is set to increase by four
percent between now and 2025, 15% by
2030 and 32% by 2035. (based on Tiwai
staying).
A combination of existing plant planned
grid-scale batteries and smarter demand
response can manage most peaks. In the
absence of significant investment in deep
energy storage or energy import capability,
long dry and, increasingly, still or dark spells
will require support that only the Rankines
can provide.
Total Electricity Demand (TWh)
0
10
20
30
40
50
2020202120222023202420252026202720282029203020312032203320342035
Actual demand (TWh)
Forecast demand (TWh)
Forecast Electricity Supply by Generation Type
202220232024202520272028202920302026
CoalGasGeothermal
HydroWindSolar
Source: Climate Change Commission/Energy Link
Source: Genesis Energy

AUGUST 2022
4
GENESIS ENERGY LIMITED
The 1,209 MW Huntly Power Station is
arguably the best located station in the
country. It is close to the largest demand
centre, has connection points to the grid
and gas lines and access to a skilled local
work force. The station has five thermal
generating units including three of the four
original 250 MW Rankine units, a 400 MW
combined cycle gas turbine and a 45 MW
open cycle gas turbine. The dual-fuel
Rankines have had four yearly maintenance
and recertification outages over their life to
date. A recertification process will begin
with one of the units later this year. An
independent engineering review that
concluded some of the Rankine units can
run to 2040 with continued investment.
The Rankines are currently the only plant
capable of delivering long duration, deep
energy storage, with access to international
energy markets. By this, we mean, the
Rankines are the only plant in the country
that can provide sustained cover for days,
weeks and longer and where additional
supply can be provided to New Zealand as
needed at reasonably short notice.
In addition to this, Huntly Power Station’s
location provides significant North Island
energy security in the event of transmission
outages, planned and unplanned, that
disconnect the North Island from the
South Island.
The extent of the cover provided is
highlighted in the graph below. Huntly
Power Station has been called on to provide
around 400 GWh to the market in each of
the last five years which has been essential
to avoid the social and economic impact on
households and business of power
shortages.
Huntly Power Station,
the reliable back-up
...the Rankines are
the only plant in the
country that can
provide sustained
cover for days, weeks
and longer...
GWh
Rankine Long Volume + Swaptions (cumulative)
1 2 3 4 5 6 7 8 9 10 11 12
0
200
400
600
800
1000
1200
Month
FY 18FY 19FY 20FY 21FY 22
Source: Genesis Energy

AUGUST 2022
5
GENESIS ENERGY LIMITED
The power station delivers
value in many ways to both
Genesis and the broader
market, including supporting a
low cost, reliable supply of
electricity.
Since 2014, Huntly Power Station has
provided 2,054 GWh through supply
contracts (swaptions) with generators to
cover the shortfalls from their renewable
generation. This is enough to power around
30,000 homes for 10 years, a city the size of
Palmerston North.
Huntly Power
Station delivers
In recent times, Huntly Power Station has
been heavily relied upon. Between 2017 -
2021 generators called on their swaption
supply contracts, on average, 109 days a
year or, 29% of the time. The top three
occasions were in 2017 when it was needed
to cover the peak winter demand on the
back of below average national hydro
storage. It was a similar scenario in 2019
and 2021 when below average hydro
storage was coupled with a tight supply
of gas.
Huntly Power Station again supported the
market earlier this year when hydro levels
were very low but not to the extent that
was required in 2021.

AUGUST 2022
6
GENESIS ENERGY LIMITED
We believe the role Huntly plays today will
evolve but is vital for a successful and just
transition. At Genesis significant
consideration is being given to the role of
Huntly Power Station during the transition
from a security of supply perspective.
This has included looking at alternative fuel
options for the Rankine units and alternative
wholesale market settings that might better
support delivery of a secure, reliable, and
affordable supply of electricity looking
ahead.
As stated in 2022, we believe the use of
coal for generation has peaked and it will
continue to steeply decline as new
renewable generation comes online. An
independent life assessment of the
Rankines in 2021 determined that the
current operational performance can be
maintained to 2030 and could be extended
out to 2040 if run on biomass.
New Zealand’s energy transition
We have plans to trial biomass as an
alternative fuel to coal and have identified
black pellets as a good option due to their
high energy density which flows through to
cost benefits in transport, storage, and
handling. It also appears that little
modification to existing infrastructure and
equipment would be needed. Later this
year, we will be investing in the
recertification of one of the Rankine units.
We remain optimistic a trial burn will be
held in 2023. We were encouraged to see
the Government’s Emissions Reduction Plan
signal an intent to support the development
of a local biomass market as large amounts
will be needed, and a secure supply is
critical to making this work for large
industrial and commercial users.
Kilotonnes
Coal Consumption Forecast
0
200
400
600
800
1000
1200
1400
FY 21FY 22FY 23FY 24FY 26FY 25
ActualMeanWet ScenarioDry Scenario
Source: Genesis Energy
An independent life
assessment of the
Rankines in 2021
determined that the
current operational
performance can be
maintained to 2030
and could be extended
out to 2040 if run on
biomass.

GENESIS ENERGY LIMITED AUGUST 2022
7
International coal prices were
already rising steeply before
the war in Ukraine started in
February 2022. At USD188 per
tonne, it was close to record
levels. Since, the Indonesian
benchmark for coal has
increased to USD322 in
August. For context, it was
USD49 in September 2020.
Europe imported over 50 million tonnes of
coal annually from Russia before the war. By
comparison, Europe imports approximately
2.6 million tonnes from Indonesia and 1.6
million tonnes from Australia per annum.
Prices look likely to remain elevated as
Europe tries to secure supply from other
sources and China does likewise, after
disruptions to production and
transportation in some of its coal producing
provinces as winter looms. For Genesis, this
has changed the economics of holding high
volumes of coal and the running of the
Rankine units.
Based on our current forecast, Genesis’
current coal stockpile is sufficient to cover
average requirements through until the
end of 2024. This coverage shortens
dramatically in the event of a dry sequence
when it would likely need to be replaced in
mid-2023. At current replacement costs,
maintaining a stockpile to provide market
security would cost between $300 million
– $400 million.
On top of high fuel prices, there is also the
cost of carbon to consider (currently
NZD85 per unit) which may increase further
over the next 12 months. The simple and
approximate formula for converting the
cost of carbon to consumer pricing is each
additional $1 per unit of carbon adds $1 per
MWh of electricity from a Rankine unit
generating on coal.
Genesis is not in a position and cannot
reasonably be expected, to subsidise the
market with back-up generation. The flow
on effects of the ‘new normal’ in
international fuel and energy markets will
impact everyone and it is reasonable to
expect a collective market approach to
ensure security of supply for New Zealand.
The flow on effects
of the ‘new normal’ in
international fuel and
energy markets will
impact everyone and it
is reasonable to expect
a collective market
approach to ensure
security of supply for
New Zealand.
Volatile international prices
Historic and forward coal prices
USD/tonne
$0
$50
$100
$150
$200
$250
$300
HBA Coal IndexNewcastle ICE Futures Price
$350
Jan 20Jul 20Jan 21Jul 21Jan 22Jul 22 Jan 23Jul 23 Jan 24Jul 24 Jan 25Jul 25
Source: Genesis Energy

AUGUST 2022
8
GENESIS ENERGY LIMITED
Genesis Energy
Expression of Interest
Market Security Options
Genesis Energy are requesting Expressions of Interest for Capacity under a Market Security Option in accordance with the attached
term sheet.
All contracts entered into as a result of this EOI process will be identical save for the Counterparty, Capacity, and potential
differences in ISDAs negotiated prior to this process. Genesis Energy’s intention is that Market Security Options are available to
all market participants to aid in managing their dry period risk cover on a level playing field.
Each interested party is required to:
•sign and return the Expression of Interest Information Protocol (attached); and
•indicate what Capacity (MW) that it is interested in,
(together, the Proposal) and submit the Proposal to Genesis Energy by 5.00pm Tuesday 20 September 2022 (Closing Time), or such
later time as Genesis Energy may specify by notice in writing to the recipients of this letter.
Proposals may be submitted by registered mail or email to the addresses outlined below:
Address: The Genesis Energy Building
155 Fanshawe Street
Auckland 1010, New Zealand
Name: Scott Foster
General Manager Trading
Email: commoditiesdesk@genesisenergy.co.nz
By submitting a Proposal to Genesis Energy, each interested party acknowledges and agrees that Genesis Energy may, in its sole
discretion:
•accept any Proposal even though it may vary from the terms set out in this letter
•reject any or all Proposals
•discontinue or vary the process at any time for any reason, whether prior to or following the Closing Time
•waive any irregularities or informalities in the process or a Proposal
•deal with or enter into negotiations with one interested party without notifying the others
Genesis Energy agrees that it will not use the documentation and other information received by Genesis Energy from interested
parties in response to this EOI for any purpose other than for evaluating Proposals and shall not disclose the same to any other
interested party or other person, other than to Genesis Energy’s advisers who also agree to keep the information confidential or as
otherwise specified in this EOI.
CONDITIONS:
•Any contract resulting from
this Expression of Interest will be governed by the provisions of an ISDA Master Agreement with an
appropriate Schedule between Genesis Energy and the counterparty.
•Respondents not having current ISDA Master Agreements with Genesis Energy should be prepared to engage early in the EOI
process to expedite the necessary legal documentation.
•All responses to questions
will be copied to all prospective responders.
•You may only submit a Proposal if you are a "wholesale investor" as that term is defined in clauses 3(2)(a), (c) and (d) of
Schedule 1 to the Financial Markets Conduct Act 2013.
PROCESS AND TIMELINE:
The process and timeline will be:
•Questions arising from this EOI should be raised by 5:00pm 6th September 2022.
•All responses to questions will be copied to all prospective responders.
•Expressions of Interest of MW Capacity required to be submitted by 5:00pm Tuesday 20th September 2022.
•A long form Confirmation will be sent to parties that have expressed interest by 5:00pm Friday 23rd September 2022.

AUGUST 2022
9
GENESIS ENERGY LIMITED
GENERAL:
This letter does not constitute an offer, but merely an invitation to interested parties to express their interest in the market security
options.
The descriptions and details of the market security options set out in the attached documentation are for information purposes only
and Genesis Energy does not give any warranty (express or implied) as to the accuracy, content, completeness, value or otherwise of
such descriptions or details. Each interested party acknowledges if it submits a Proposal in response to this EOI, that it does so in
reliance solely on its own judgment and not in reliance on any representations made by Genesis Energy.
By participating in the EOI process, each interested party acknowledges that Genesis Energy has reserved to itself certain rights and
discretions in this letter and agrees that Genesis Energy may at any time exercise any of these rights and discretions.
For the duration of the EOI, each interested party agrees to keep the EOI strictly confidential and not make any public statement to
any third party in relation to any aspect of the EOI, the EOI process or the acceptance or rejection of any Proposal, without Genesis
Energy’s prior written consent. Each interested party must not attempt to influence or provide any form of personal inducement,
reward or benefit to any representative of Genesis Energy in relation to the EOI. Any interested party who attempts to do anything
prohibited by this paragraph may be disqualified from participating further in the EOI.
Genesis Energy intends to rely on the interested party’s Proposal and all information provided by the interested party (e.g. in
correspondence). In submitting a Proposal and communicating with Genesis Energy, each interested party warrants that all
information it provides to Genesis Energy is true, accurate and complete and not misleading in any material respect and does not
contain intellectual property that will breach a third party’s rights.
Each interested party agrees that it shall not have any rights and further waives any rights it may have against Genesis Energy, or any
other person arising from the exercise by Genesis Energy of its rights and discretions and agrees not to make any claim, bring any
action, or otherwise seek to recover from Genesis Energy, or any other person associated with Genesis Energy, any of the costs
incurred by that interested party in respect of its Proposal or involvement in the EOI process or any lost expectation of profits or other
benefits which that interested party may expect to accrue from any acceptance of its Proposal.
We look forward to receiving your Proposal.
Yours sincerely
Pauline Martin
Chief Trading Officer
Genesis Energy Limited
Expression of Interest
(continued)
Market Security Options (continued)

AUGUST 2022
10
GENESIS ENERGY LIMITED
Term Sheet
Market Security Option Term Sheet
This Indicative Term Sheet (Term Sheet) sets out the indicative key terms and conditions of a market security option agreement between
Genesis Energy Limited (seller / floating rate payer) (Genesis) and the buyer / fixed rate payer (buyer). This Term Sheet is not legally binding
and is not an offer capable of acceptance. No legal obligation arises in relation to the subject matter contained herein. This Term Sheet may
only be published, delivered or distributed in or from any country or jurisdiction under circumstances which will result in compliance with all
applicable laws and regulations.
1.Option Term1 January 2023 to (and including) 31 December 2024.
2.Option CapacityMW (buyer to indicate)
3.Available DaysAny day during the Option Term (subject to the minimum duration of a Call transaction set out in
section 7).
4.Grid Reference Point
(Settlement Node)
HLY2201.
5.Call ProfilePeak MW (TP15-44): between 40-100% of the Option Capacity.
Off-Peak MW (TP1-14 & TP45-48): between 50-100% of the Peak MW applicable to that Call.
•
Entire duration of a Call must have the same Peak MW and Off-Peak MW profile.
•
Multiple Calls can overlap provided that the combined MW of all Calls in effect at any time do not
exceed the Option Capacity in any Trading Period.
6.Notice PeriodCall Notice must be received by Genesis before 10am the Business Day prior to the Call Start Date.
7.Duration of each Call
transaction
•
Not less than five calendar days, commencing at 00:00 hours on the Call Start Date and ending at
23:59 hours on the Call End Date.
•
The term of a Call cannot be extended once it has been exercised.
8.Available ElectricityEach Call must have sufficient Electricity in the Electricity Ledger for the duration of the Call, for the
Call to be valid. This assessment is made after all Calls are made (and accounted for), but not yet
commenced.
9.Electricity PurchaseThe buyer can elect to commit to notionally purchase Electricity at the Electricity Purchase Price in $/
MWh in multiples of 0.5GWh (Electricity Purchase) by issuing an Electricity Purchase Commitment.
•
Electricity Ledger WAC: The weighted average cost (WAC) of the Electricity Ledger Volume will be
adjusted to reflect the additional Electricity Purchase on the Electricity Availability Date.
•
Electricity Ledger Volume: The MWh balance in the Electricity Ledger is increased by the Electricity
Purchase Volume on the Electricity Availability Date (and available to be Called).
10.Electricity UseElectricity is removed from the Electricity Ledger at the commencement of each Call in an amount
equal to aggregate MWhs subject to the Call.
11.Call Strike PriceThe CFD strike price for a Call will be the Electricity Ledger WAC on the Call Start Date.
12.Electricity Purchase PriceThe Electricity Purchase Price for each Electricity Purchase is equal to the following (as determined on
the date of the Electricity Purchase Commitment):
((Coal Futures Price x 0.72) / NZDUSD FX Rate) * 0.54 + Carbon Price + Fixed Fee, in $/MWh
Where:
•
Coal Futures Price is the daily USD settlement price of the ICE Newcastle Coal Futures t+1 monthly
contract.
•
NZDUSD FX rate is the daily settlement price for the New Zealand Dollar CME quarterly future that
covers the Coal Futures Price.
•
Carbon Price is the daily settlement price for the Jarden CommTrade carbon platform.
•
Fixed Fee is the sum of international and local logistics, financing charges, and tolling fee. The Fixed
Fee is NZD$94.30/MWh
13.Automatic final CallIf the buyer has not Called all Electricity in the Electricity Ledger prior to the expiry date of the Option
Term, an automatic final baseload Call regime will apply to ensure that the volume of Electricity in the
Electricity Ledger is reduced to zero on the expiry date of the Option Term.

AUGUST 2022
11
GENESIS ENERGY LIMITED
14.Suspension Events
ELECTRICITY PURCHASE
Any event, or series of events, resulting in a material delay of coal logistics which limits Genesis’ ability
to deliver relevant coal purchases to the Huntly Power Station in a timely manner.
GENERATION
MWh Loss @ Huntly Power Station
•
>= 50MW – Option Capacity reduced by 50%
•
>= 100MW – Option Capacity reduced by 100%
Any event, or series of events, resulting in the reduction of generation capacity from, or the
deliverability of coal to, the Rankine Units at the Huntly Power Station to meet the above thresholds in
any Trading Period for whatever reason other than a planned outage of the relevant Rankine Unit.
Volume suspended due to river heating restrictions (in accordance with Genesis’ resource consent
conditions), will be delivered as baseload the following day after the end of the Suspension Period.
If the Peak Capacity of an active Call exceeds the available Option Capacity due to Suspension Event(s)
then the relevant Call Profile(s) will be scaled so that the adjusted Peak Capacity is no greater than the
available Option Capacity after accounting for Suspension Events.
15.Suspension PeriodThe period during the Option Term commencing immediately upon the time Genesis issues a notice to
the buyer that a Suspension Event has occurred and ending immediately upon the time Genesis issues a
notice to the buyer that the Suspension Event has ceased.
16.Suspension CessationThe Suspension Event persists until the underlying event, or series of events, that caused the
Suspension Event has ended (including through transient periods where the thresholds above are not
met while the underlying event is ongoing).
1 7.Premium$125,000/yr/MW of Option Capacity
Payable in advance.
18.Governing lawNew Zealand
19.Financial Markets
Conduct Act
The market security option agreement contemplated by this Term Sheet will only be available to certain
qualifying "wholesale investors" within the meaning of the Financial Markets Conduct Act 2013. Each
party will provide appropriate representations, warranties and certifications to the other in connection
with the Financial Markets Conduct Act 2013.
Definitions
The meanings of the terms used in this Term Sheet are set out below:
Defined termMeaning
Business Daymeans a day (other than a Saturday or Sunday) on which banks are open for business in Auckland,
New Zealand.
Callmeans the exercise of an option resulting in Genesis selling a CFD to the buyer reflecting the details in the
Call Notice and a strike price equal to the Electricity Ledger WAC.
Call Noticemeans, in respect of each Call, a Call notice issued by the buyer (in the form to be provided by Genesis).
Call Start Datemeans, in respect of each Call, the first date of the CFD as set out in the Call Notice.
Call Strike Pricehas the meaning given in section 11.
Codemeans the Electricity Industry Participation Code 2010 promulgated pursuant to the Electricity Industry Act
2010, as amended, replaced, supplemented or substituted from time to time.
Electricity has the meaning given to it in the Code.
Electricity Availability Datemeans, in respect of each Electricity Purchase, 90 days after the date a valid Electricity Purchase Commitment
is received by Genesis, unless otherwise agreed between the parties.
Term Sheet (continued)
Market Security Option Term Sheet (continued)

AUGUST 2022
12
GENESIS ENERGY LIMITED
Electricity Ledger means the ledger maintained by Genesis which records the notional balance of Electricity available to be
Called by the buyer, represented by the Electricity Ledger WAC and Electricity Ledger Volume.
Electricity Ledger WACmeans, at any time, the weighted average cost of all Electricity (per MWh) that has been added to the
Electricity Ledger in accordance with section 9 net of the weighted average cost of all Electricity subject to
prior Calls.
Electricity Ledger Volumemeans, at any time, the total of each Electricity Purchase Volume that has been added to Electricity Ledger
net of all prior Calls.
Electricity Purchase has the meaning given in section 9, following the issuance of a valid Electricity Purchase Commitment.
Electricity Purchase Pricehas the meaning given in section 12.
Electricity Purchase
Commitment
means a commitment to notionally purchase Electricity, issued by the buyer to Genesis in a commitment
notice (in a form to be provided by Genesis).
Electricity Purchase Volume means, in respect of each Electricity Purchase, the number of GWh set out in the relevant Electricity Purchase
Commitment.
Option Capacityhas the meaning given in section 2.
Option Termhas the meaning given in section 1.
Rankine Unitsmeans the 250MW gas/coal units at the Huntly Power Station.
Suspension Eventhas the meaning given in section 14.
Trading Periodhas the meaning given to it in the Code.
Information Protocol
Introduction
1. Genesis Energy Limited (Genesis) and Counterparty (together the parties) are proposing to discuss a potential market security option
arrangement between them for 2023 and 2024 (Proposal).
2. Genesis and Counterparty are mindful of their obligations under the Commerce Act 1986 (Commerce Act). The purpose of this
information protocol (Information Protocol) is to ensure that the parties comply with the Commerce Act when discussing or negotiating
the Proposal.
Information Protocol
3. The parties agree to comply with this Information Protocol when discussing, negotiating or corresponding in relation to the Proposal
(collectively, the Communications) and when dealing with any commercially sensitive information of the other party gained as a result of
the Communications.
4. The parties agree the following matters outlined in (a) to (h) below, in relation to the Communications:
a. the Communications (and the fact of the Communications) will remain confidential;
b. the parties will only engage in the Communications to the extent necessary for evaluating and negotiating the Proposal (permitted
topics of discussion include the volumes that the parties are seeking to secure, the price of the option(s) and other key terms and
conditions);
c. the parties will involve in the Communications, only those individuals strictly required for the purposes of evaluating and pursuing the
Proposal (Specified Representatives). Each party must retain a list of Specified Representatives and share it with the other party
upon request;
Defined termMeaning
Definitions (continued)
Market Security Option Term Sheet (continued)

AUGUST 2022
13
GENESIS ENERGY LIMITED
d. each Specified Representative must agree to comply with the terms of this Information Protocol;
e. the Specified Representatives will not (unless such information is publicly available and is strictly necessary for the purposes of the
Proposal that it be discussed), discuss or share information in relation to:
i. either party’s current or future prices, production volumes or capacity;
ii. future generation strategy;
iii. the potential impact of proposed hedging contracts on market prices or generation decisions;
iv. expectations of future market (e.g. supply/demand) scenarios occurring;
v. negotiations or agreements with other counterparties;
vi. underlying costs, margins or margin expectations;
vii. matters relating to specific customers; or
viii. any other matters which would result in a reduction in competitive uncertainty as to the future actions of either party in the
market, without both parties first taking specific competition law advice in relation to such matters.
f. prior to any discussions in relation to the Proposal, a high-level agenda will be circulated. The first item on the agenda will be a
reminder that the Communications are subject to this Information Protocol;
g. the parties will keep appropriate records of any Communications (including brief minutes or file notes). These will be headed
Confidential – subject to agreement and legal review;
h. if any Specified Representative is in doubt as to whether information should be exchanged or discussed, they must confirm with their
legal advisors beforehand
5. Any information obtained from the other party as a result of the Communications, must be:
a. used only for the purpose of evaluating and pursing the Proposal;
b. shared only with Specified Representatives;
c. stored securely such that it is not accessible by individuals other than Specified Representatives; and
d. returned or destroyed should the Proposal not proceed.
By signing this Information Protocol, each party agrees to be bound by its terms.
Signed for and on behalf ofSigned for and on behalf of
Genesis Energy Limited(Counterparty)
by its duly authorised signatory:by its duly authorised signatory:
Name:Name:
Position:Position:
Date:Date:
Information Protocol (continued)
Information Protocol (continued)