Frontier Energy (ASX:FHE) will use scheme water at its Bristol Springs Renewable Energy green hydrogen project using a major pipeline as part of an agreement with WA utility Water Corp.
While Frontier had always had access to multiple water sources due to its ideal location in WA’s south west in an industrial area, the company has now locked in its decision to access scheme water via a major water pipeline called the Stirling Trunk.
Frontier expects each kilogram of hydrogen it produces to require 9L of water; the Stirling Trunk pipeline is located some 3.5km from the project.
Worth noting is that Water Corp is WA’s state-owned water utility. Frontier aims to extract up to 1,250kL a day to feed through a 150MW electrolyser, eventually.
The stage one electrolyser, per Frontier’s Bristol project design plan, will be just short of 37MW.
Notably, Frontier outlines the Stirling Trunk option allows it to realise the low manufacturing cost realised in the Bristol project pre-feasibility study, targeting a manufacturing cost of $2.83/kg of hydrogen.
The company outlined last month that the future expansion of solar capacity on-site the Bristol project (which will power the electrolysers in question) could eventually lead to even cheaper hydrogen production costs given economies of scale.
“Expansion study scenarios are expected to see a reduction in future capital and operating costs compared to Stage One given existing infrastructure in place,” Frontier noted.
That expansion would be a literal one, where Frontier will buildout the BSS into its total 846 hectare project area. Earlier suggestions the company would use a mix of solar and wind energy have been revised to a solar-only play.
“The location of our project has given the company a significant advantage compared to peers in remote locations,” Frontier Energy chairman Grant Davey said.
“Accessing suitable water is critical for green hydrogen production. Using the existing pipeline network means the company does not require a desalination facility.”
“This saves millions in capex costs and also reduces the time to first production as additional approvals are not required.”
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