Frontier Energy accelerates Bristol Springs Green Hydrogen Project with $10m placement
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Frontier Energy has completed a $10 million placement at $0.42 per share to accelerate the development of Bristol Springs Green Hydrogen Project in southwest WA.
The cap raising was at a 4.5% discount to last closing price ($0.44) on 14 October 2022, and a 2.0% discount to the 10-day VWAP ($0.429) on 14 October 2022 and executive chair Grant Davey subscribed for $1 million (subject to shareholder approval).
Plus, it was strongly supported by institutional and high-net-worth investors, which Frontier Energy (ASX:FHE) says demonstrates the market’s “significant support” for the project where a Pre-Feasibility Study has already found that Stage One could power a 36.6MW electrolyser to produce 4.4 million kilograms of green hydrogen per annum at just $2.83/kg – well within reach of the $2/kg price point where the green fuel is considered to be competitive with fossil fuels.
Funds from the placement will be used for early works at the project site, hydrogen refuelling station development, energy storage and system security (Hydrogen Peaking Plant) studies as well as for general working capital.
“We are delighted to announce the completion of the placement, which will enable the company to continue its operational strategy of advancing the Bristol Springs Project,” MD Sam Lee Mohan said.
Upon completion of the placement, Frontier has cash of ∼$13 million, which means the company should be fully funded until a Final Investment Decision (FID) is made – which is expected during 2H 2023.
This article was developed in collaboration with Frontier Energy Limited, 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.