Frontier Energy’s WA Green Hydrogen feasibility study on track for Q1 2023 release

Frontier Energy (ASX:FHE) confirmed it expects to release the Definitive Feasibility Study (DFS) for its flagship WA-based Bristol Springs Green Hydrogen Project (BSGHP) in Q1 of 2023 on Tuesday. 

Offtake agreements underpinning the project are accelerating and Frontier is on track to become the first company to manufacture Green Hydrogen in WA.

Not only that, but the WA state McGowan ALP government has given the project “Lead Agency Status,” ultimately meaning the project is earmarked on the government’s books as a key instrument of decarbonisation and hydrogen targets.

Public sector and private sector recognition 

Leading hydrogen industry body Hydrogen Australia (a major organ of the Smart Energy Council) continues to progress its certification work for the BSGHP. 

Frontier also executed a collaboration agreement with privately held Waroona Energy to combine efforts at BSGHP. 

Green Hydrogen requires electricity generated from renewables, and Waroona’s solar assets will directly facilitate this. In mid-September, Frontier minted an agreement with WA utility Water Corp to provide the water needed for green hydrogen electrolysis. 

Through the December quarter, the Frontier also appointed former ATCO hydrogen chief Sam Lee Mohan, who Market Index interviewed late last year. 

The company wound up the December quarter with an impressive $13.4m in cash to progress activities in Q1 of 2023. 

Pre-Front End Engineering Design (FEED) strength 

The company’s pre-FEED report for the (BSGHP) sees capex costs at $71.7m. 

If that number seems large, consider economies of scale: Frontier expect operating costs for the hydrogen manufacturing project are to only reflect $3.69m.

Pre-FEED did not identify any meaningful barriers to the development of the project. 

Without a doubt, the findings of the BSGHP DFS are likely to be closely watched. 

FHE's six month charts at close on Tuesday

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.