Energy

Frontier Energy boosting WA solar farm capacity fourfold to 500MW with new land lock-in

Tue 02 Aug 22, 10:58am (AEST)
A PV solar panel faces the photographer underneath a blue sky
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Key Points

  • Frontier Energy executes option to acquire land parcel nearby existing acreage for the Bristol Springs Project near Waroona
  • Total acreage Frontier now able to access allows for solar farm with a size able to produce 500MW; stage 1 had been limited to 114MW
  • Frontier will build a solar farm in WA to sell green energy to the state’s grid before producing green hydrogen later this decade

Frontier Energy (ASX:FHE) has boosted its WA landholdings by over 330% in the Peel region as it prepares to commence construction on stage 1 of its Bristol Springs solar farm in 2023. 

The expansion of usable land for the project allows the company to produce up to 500MW of solar power. In short: more room for more PV panels. 

Investors are liking the move, with shares jumping up 8% in early trades before receding. 

The project, which in its first stage will produce up to 114MW of renewable electricity for sale into the WA electric grid, called SWIS, is ultimately the first building block on a path towards green hydrogen manufacture. 

In June, Frontier Energy unveiled its master plan to become WA’s first smallcap green hydrogen producer, allowing investors the opportunity to directly participate in the green hydrogen economy through equities. 

While Frontier-branded green hydrogen fuel is not on the immediate radar, WA’s already dominant position in Australia as a leading solar energy beneficiary harmonises with Frontier’s plans to build a grid-scale plant some 120km from Perth. 

Green Hydrogen Study to drop this month 

Currently, advisory firm Xodus is preparing for Frontier a keystone report into its plans to produce green hydrogen, as well as another to expand renewable capacity. Both documents will be released later this month. 

The Xodus-led studies (Xodus are part of Subsea 7 group) are essential for investors as both should outline the long-term strategy to build critical mass in the renewable energy sector with which to leverage into green hydrogen production.

Frontier notes multiple initiatives from the WA state government currently support private sector participation in the existing renewable power market, and, the state's emerging hydrogen market. 

The market is liking Frontier 

Taking a surface look at Frontier Energy’s financials,  market interest in the company’s plans is palpable. 

  • Over the last month, Frontier’s share price is up 20.45% 

  • Year to date (YTD), the share price is up 103% 

  • Frontier Energy is outperforming the ASX200 on a one year basis by 110% 

  • One a six month basis, Frontier is outperforming the energy index (XEJ) since listing in March.

With shares at 25c, Frontier has a market cap of $57.3m.

Since listing in March, Frontier has outperformed the energy index (XEJ) on a six month basis for nearly that entire time
Since listing in March, Frontier has outperformed the energy index (XEJ) on a six month basis for nearly that entire time
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Frontier Energy was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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