Frontier could be producing green hydrogen sooner than expected from its Bristol Springs Solar project due to its location near Waroona, Western Australia.

Preliminary results from the Green Hydrogen Study found that commercial quantities of the gas could be produced from the 114MWdc Stage One solar production.

This is due to the project location on freehold land and proximity to existing grid, gas and water infrastructure, which reduces overall costs when compared to projects in more remote areas.

Frontier Energy (ASX:FHE) added that proximity to an existing and emerging green hydrogen domestic market – including the users of the giant Dampier Bunbury Pipeline and the long-haul transportation industry – provides a pathway to hydrogen sales.

“The Stage One Solar Project is an excellent foundation for the company to move into the renewable energy sector, as we believe it will generate solid returns over at least a 30-year operating period, in a market environment of ever-increasing clean energy demand,” managing director Mike Young said.

He added that while it originally anticipated that greater solar production would be required to commence green hydrogen production to justify the additional capital cost when it tasked Xodus Group to determine the size of solar production required, the study had instead found the initial capital costs would be significantly less than expected.

“Our ability to service the most likely first adopters of hydrogen (gas pipeline and long-haul transportation) means we are also likely to have customers for our product,” Young explained.

“Given the industry remains in its infancy, the ability to target these specific customers is somewhat more important than after more widespread adoption.”

Bristol Solar Project

The BSS Project is a large, utility-scale solar energy project located in the southwest of Western Australia that will use well-established solar panel and tracking technology to deliver clean energy.

Development is well advanced and is designed to produce 114MWdc of renewable electricity in Stage One with land acquisition opportunities to expand beyond this.

It is strategically located to connect to the backbone of the Southwest Interconnected System (SWIS), which provides power to over 2.3 million customers, and is close to road, water, and port infrastructure.

Development approval has been granted by the Regional Joint Development Assessment Panel, and an electricity transfer access contract (ETAC) is in progress with Western Power.

The likelihood that commercial green hydrogen production can be achieved earlier than expected is a big plus as the Western Australian state government plans to have hydrogen replace diesel with Frontier noting that current diesel price of about $2 per litre is equal to a hydrogen price of $8 per kilogram.

Additionally, the Federal Government has allocated $1.3bn in its 2022-23 budget for energy security funding, including for hydrogen.

 

 

 

This article was developed in collaboration with Frontier Energy, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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