Frontier Energy: WA’s Waroona region to become state’s renewables province
Only days into job, Frontier's new MD mints informal deal with private Waroona Energy
Source: Unsplash
Mentioned
KEY POINTS
- Frontier Energy has signed a collaboration agreement with Waroona Energy surrounding renewables
- Both companies are building solar farms relatively closeby to one another in WA’s southwest
- Potential to provide cost savings for both groups in the short and long term
Ahead of the construction of stage 1 of its Bristol Springs green hydrogen project, Frontier Energy (ASX:FHE) has teamed up with the closest neighbour on its acreage, the privately held Waroona Energy.
Frontier’s first stage of the Bristol Springs project sees the company developing a 114MW solar farm in WA’s south as, intended to ultimately produce low-cost green hydrogen in WA in 2025.
Waroona Energy, meanwhile, is developing a 241MW solar farm practically next door to Frontier’s Bristol Springs solar project.
Frontier Energy is hopeful it can synergise its efforts with Waroona to co-develop a solar farm in the Waroona region with some combined 350MW capacity, with construction able to start next year.
If both companies scale up solar operations to their maximum (including future stages of the Bristol project,) there is a potential for a jointly run solar farm with 700MW capacity. This would make it the largest renewable energy project connected to WA's main grid within a 150km radius of Perth.
It’s serious about this ambition. Earlier this week, the company appointed a new managing director: the former head of hydrogen strategy at ATCO, an Australian gas heavyweight.
Using sunshine to make green hydrogen
Frontier’s Bristol Springs solar farm will allow it to begin building up the renewable energy generation assets it needs to power electrolysers, allowing the hydrogen to be marketed as ‘green.’
Back in early August, the company executed a purchase of further landholding around the project area, which Frontier at the time noted had the capacity (in terms of space for solar panels) to boost its solar farm output to 500MW, allowing it to make more Hydrogen.
Unlocking potential: management
“Given Frontier and Waroona Energy’s projects are adjacent, it makes sense for an open dialog between the companies,” Frontier’s new MD Sam Lee Mohan said.
“This will ensure that all stakeholders are fully aware about the potential for around 350MW of fully permitted renewable energy to commence development during 2023.”
“We look forward to working closely with Waroona in the months and years ahead.”
At this time, it appears the collaboration with Waroona has landed on the company’s radar first. Under the collaboration agreement, there are no real legally binding obligations placed on either entity by the other. The company explicitly notes it has not formally minted a JV.
However, a clause on studies and reports does set out the ambition that both companies try to fund any studies or reports which are needed to develop potential projects on a 50/50 basis.
A schematic outlining the boundaries of each solar project in proximity to one another
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.
