Frontier Energy appoints former WA Premier Mark McGowan as its chairman

Frontier Energy appoints former WA Premier Mark McGowan as non-executive chairman
Company expects to benefit from McGowan’s strong knowledge of Federal Government processes
Australian Government currently rolling out first WA tender for its Capacity Investment Scheme

Special Report: Frontier Energy has highlighted its growing visibility and transition towards becoming a renewable energy producer with the appointment of former West Australian Premier Mark McGowan as its non-executive chairman.

McGowan is no stranger to renewable energy, having played a leading role in starting the state on its transition from fossil fuelled generation to renewable energy whilst serving as Premier from 2017 to 2023.

This includes committing state-owned electricity generator Synergy to transition out of coal-fired generation by 2030.

His government also oversaw ~$3.8bn worth of investment in new green power infrastructure, including large-scale battery storage and renewable energy generation projects.

Frontier Energy (ASX:FHE), which is currently developing Stage One of its Waroona renewable energy project, expects to benefit from McGowan’s strong knowledge of Australian federal government processes, particularly the current roll-out of the first WA tender for its Capacity Investment Scheme (CIS).

The final design of the CIS now recognises that a co-located solar and battery project can provide genuine clean dispatchable renewable energy, marking a key step away from the original vision of the scheme as a battery-only tender process.

This could allow the CIS to underpin Stage Two of the company’s Waroona project.

A significant asset for WA

“Throughout my tenure as Premier of Western Australia, I worked towards a clean energy transition for the State whilst ensuring energy security was always a priority,” McGowan said.

“Frontier’s Waroona project stands out as a significant asset in Western Australia’s transition, at a time when energy security is paramount, and the state continues to experience new demand records.

“I look forward to working closely with the company to ensure this strategy is realised for the benefit of shareholders, key stakeholders and all West Australians.”

Executive director Grant Davey said the company was delighted to have McGowan on board due to his strong and strategic focus on sustainable, green energy in WA while serving as Premier.

“It was announced last week that Frontier has received certified reserve capacity. The reserve capacity mechanism is unique to Western Australia and allows us to execute Stage One of the Waroona Project,” Davey said.

“This is the first step in our strategy to become a large-scale producer of renewable energy.”

Stage One of the Waroona project is a 120MWdc (megawatts of direct current) solar facility with an integrated 4.5 hour duration 80MW/360MWh lithium-ion phosphate (LFP) battery that will supply clean electricity into the South West Interconnected System.

The battery is especially important as it enables the company to benefit from the high average energy price of $143MWh during peak periods by storing electricity generated by the solar panels during off-peak hours when the sun is shining.

Known for a time as ‘Mr 91%’ for the staggering approval rating McGowan achieved after leading the state of WA through the Covid-19 crisis, his appointment will bring a new level of knowledge of State and Federal processes and policies to the Frontier board.

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.