Frontier Energy locks in specialist to manage hydrogen offtake agreements

Wed 12 Oct 22, 11:05am (AEST)
A tanker sits on the back of a truck with the words Hydrogen painted longways across it in blue
Source: iStock

Key Points

  • Frontier has appointed Equity Lifting Solutions (ELS) as its hydrogen offtake advisor for the Bristol Springs green hydrogen project
  • ELS has historically set itself apart from competitors in WA’s natural gas offtake negotiations market; talks with priority targets underway
  • ELS to find buyers for Frontier’s stage one green hydrogen production output of 4.4Mkg each year; eyeing Dampier-Bunbury pipeline

Frontier Energy’s (ASX:FHE) Bristol Springs green hydrogen project will produce 4.4 million kilograms of hydrogen each year in the first stage of its operations, so it’s easy to see why the company is keen to get a headstart on negotiating offtake. 

To that end, Frontier has today locked in WA’s Equity Lifting Solutions (ELS), a private player typically operating in domestic LNG energy offtake negotiation activities, and now tasked with assisting Frontier find buyers for its looming output. 

Shares are up 8% in the second hour of trade.

Currently, ELS has identified priority targets for offtake, and the company is already engaged in negotiations with these players. 

Discussions are held not only with industrial end-users of the Dampier-Bunbury pipeline in WA, through which Frontier expects to ship its hydrogen gas, but also other energy companies. 

That pipeline is only 0.3km from the project site. According to a 2022 study from the Australian Gas Infrastructure Group (AGIG), the Dampier-Bunbury pipeline is ready to take on blended hydrogen gas between Kwinana and Bunbury. 

ELS no strangers to industry 

Also worth noting is that Frontier’s hydrogen strategy has rapidly advanced since the company appointed ATCO’s former hydrogen chief as its own MD, but there’s no word on whether Frontier’s Bristol Springs hydrogen will go to companies retaining a relationship with ATCO talent. 

All the same, ELS might not need to, as it boasts an impressive list of previous clients under its belt, including:

  • Jemena Energy (An Australian energy provider on the east coast) 

  • Mitsui E&P Australia (A Japanese energy engineering giant) 

  • Tokyo Gas Australia 

  • Osaka Gas 

  • CNOOC International Australia (a Chinese oil heavyweight) 

ELS will also negotiate power purchase agreements (PPA) for any excess power it produces alongside its hydrogen production.

ELS holds intimate knowledge: Management

“ELS’s intimate knowledge of the WA gas industry and players involved provides valuable intelligence,” Frontier Energy MD Sam Lee Mohan said. 

“We not only want to ensure the strongest financial returns from these offtake negotiations, but also ensure we partner with a group for the long term as we aim to grow the project rapidly in the future.” 

ELS highlighted its own strategy to move into hydrogen. 

“Hydrogen is a core part of rapid transition into low-carbon fuel sources,” ELS MD Ken Chan said. 

“Frontier’s Bristol Springs green hydrogen project will play a critical part in this transition, being strategically located on the doorstep of significant energy demand in WA’s southwest.” 

“The project’ ability to scale allows Frontier to maximise value for the local community and its stakeholders.” 

A look at Frontier's three month charts
A look at Frontier's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Frontier 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.


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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.

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