Frontier Energy locks-in collaboration agreement with Waroona Energy
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Frontier and Waroona have signed a collaboration agreement regarding their respective strategies for renewable energy production, roughly 120km from Perth.
Waroona Energy is developing a 241MW solar farm adjacent to Frontier’s (ASX:FHE) Bristol Springs Project and like FHE, key approvals are in place with construction set to kick off in 2023.
While the collaboration agreement is not intended to create a joint venture, partnership, or other relationship in which the parties have shared ownership, the two entities will explore how they can benefit from sharing specialist resources in the areas of engineering and project management.
Matters relating to policy, funding, and stakeholder engagement will be dealt with collaboratively with State and Federal governments, as well as when approaching OEMS, suppliers, EPC, and other contractors to consider whether procurement can be done on a combined project basis.
Combined, the solar energy potential of the two projects totals roughly 700MW, making it the largest renewable energy project with access to the South West Interconnected System (SWIS).
The parties will therefore collaborate on arrangements to generate revenue from power, whether as participants in the WEM, through bilateral PPAs via the SWS or behind-the-meter arrangements.
“Given Frontier and Waroona Energy’s projects are adjacent, with similar development and production timelines, it makes sense for an open dialogue between the companies,” Frontier managing director Sam Mohan said.
“This will ensure that all current and future stakeholders are fully aware and informed in a coordinated way about the potential for around 350MW (Stage 1) of fully permitted renewable energy to commence development in the region during 2023.
“We look forward to working closely with the Waroona Energy team in the months and years ahead, together unlocking the potential for the Waroona region to become a major renewable energy province in Western Australia.”
The first stage of Bristol Spring’s solar farm is capable of producing 114MW of power though the company holds enough ground to expand this to at least 438MW.
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.
Further expansion is likely to further reduce costs given the economies of scale and shared associated infrastructure.
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.