Frontier Energy recruits specialist to assist with green hydrogen off-take negotiation
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With off-take discussions with priority targets underway, gas and power specialist Equity Lifting Solutions is looking to ensure the strongest financial returns as development at the Bristol Springs Green Hydrogen Project advances.
Gas and power specialist, Equity Lifting Solutions (ELS), will help with off-take negotiations for stage-one, which will produce roughly 4.4kg per annum of green hydrogen at a low estimated production cost of $2.83/kg.
ELS has been instrumental in some of Western Australia’s largest energy offtake negotiations, most notably in liquefied natural gas (LNG) exports, Western Australian Domestic Gas usage (Domgas) and trucked LNG.
Frontier Energy (ASX:FHE) believes these discussions will not be limited to end users of hydrogen through transmission and distribution lines, but also other participants in the energy industry to assist with power purchase agreements for excess solar energy (12MW pa).
“ELS’s intimate knowledge of the Western Australia gas industry and the players involved provides invaluable intel,” FHE managing director Sam Lee Mohan says.
“We not only want to ensure the strongest financial returns from these offtake negotiations, but also ensure we partner with a group for the long term, as we aim to grow the Project rapidly in the future.”
A potential pathway for stage-one offtake will be through the Dampier to Bunbury Natural Gas Pipeline (DBNGP), just 0.3km from the project, where the targeted hydrogen/ natural gas blend is 10%.
On a daily basis the DBNGP transports c.621TJ of natural gas but with stage-one forecast to produce (on average), 1.7TJ(e) per day, it would contribute around 0.2% to the 10% target.
“Hydrogen is a core part of our industry’s rapid transition to low-carbon fuel sources and Frontier’s Bristol Springs green hydrogen project will play a critical part in this transition,” Equity Lifting managing director Ken Chan says.
“The project is strategically located on the doorstep of significant energy demand in Western Australia’s Southwest with access to the DBNGP and SWIS – its ability to scale allows Frontier to maximise value for the local community.”
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.