Frontier Energy has strengthened its board with the appointment of Guy Chalkley as its chairman. Pic: Getty Images
Frontier Energy powers up with appointment of former Western Power CEO Guy Chalkley as chairman
Energy
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- Frontier Energy appoints former Western Power CEO Guy Chalkley as its non-executive chairman
- Chalkley’s appointment is expected to support the company’s efforts to finance its Waroona renewable energy project
- He describes the project as one of the most advanced near-term renewable energy development assets in WA
Special Report: Frontier Energy is strengthening its board’s ability to deliver project financing initiatives with the appointment of former Western Power chief executive Guy Chalkley as its non-executive chairman.
Chalkley is a highly experienced energy executive who was appointed to the top post at Western Australia’s state transmission and distribution network corporation in 2016 after serving as its chief financial officer.
Prior to that, he worked in senior finance and regulatory director roles at Veolia Water and Thames Water for over a decade.
He is currently the chief executive officer of Endeavour Energy, an owner, developer, operator and maintainer of electricity distribution assets in NSW that is 50.4% owned by an Australian-led consortium of long-term investors with the remaining 49.6% held by the state.
“We are delighted to attract an experienced energy executive of Guy’s calibre,” Frontier Energy (ASX:FHE) executive director Grant Davey said.
“This is an important step in strengthening the board, while we advance our highly attractive Waroona renewable energy project towards production.
“Guy’s valuable experience with Western Power and his deep understanding of the Western Australian electricity sector will be great assets to the company. I look forward to working closely with Guy as we continue to progress the Waroona project to operations.”
Advanced renewable energy development
Chalkley himself describes Waroona as “one of the most advanced near-term renewable energy development assets within Western Australia’s energy transition”.
“The project’s location, potential timing for commencement of development and completion, together with the scope for expansion, holds considerable strategic value, not only for Frontier but also for the state of Western Australia,” he said.
“This is particularly so, as WA continues to experience new electricity demand records and requires additional renewable electricity generation capacity to be brought online, prior to the planned closures of coal generation facilities in the coming years.”
Stage One of the Waroona project is currently envisioned as a 120MWdc (megawatts of direct current) solar facility with an integrated 4.75-hour duration 80MW/380MWh lithium-ion phosphate battery.
Capex is estimated at $283m with post-tax payback estimated at 6.1 years.
Stage One is expected to deliver average annual revenue of $65m and average annual EBITDA of $57m during the first decade of operation while internal rate of return and net present value, both measures of profitability, have been forecast at 15.4% and $244m respectively.
It is development ready with all major approvals in place and an access contract executed with Western Power for connection onto the South West Interconnected System (SWIS), which is WA’s main electricity grid.
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.
