Frontier highlights potential for big boost to green hydrogen production

Frontier has identified a pathway to increasing green hydrogen output at its Bristol Springs project less than two weeks after announcing some of Australia’s lowest production costs.

Results from the Renewable Expansion Technical Assessment completed by Xodus Group, which incorporated the total 846 hectares of land under the company’s control, found that a solar-only solution could produce at least 438 megawatts of power.

This is nearly four times higher than the planned 114MW Stage One solar farm and could deliver a corresponding increase in green hydrogen production.

While Frontier Energy’s (ASX:FHE) Pre-Feasibility Study had found that the Stage One solar farm could power a 36.6MW electrolyser to produce 4.4 million kilograms of green hydrogen per annum at just $2.83/kg, further expansion is likely to reduce costs given the economies of scale and shared associated infrastructure.

Further cost reductions will take the project even closer towards becoming competitive with fossil hydrogen.

“Our expanded footprint allows for relatively cheap expansion as we are strategically located around existing infrastructure,” executive chairman Grant Davey said.

“Our Expansion Study indicates the potential for lower cost of green hydrogen production through economies of scale and world class infrastructure in the area.

“We will continue to assess additional opportunities in the region as our long-term strategy is to have renewable green energy generation of more than 1GW.”

Discussions regarding additional land opportunities in the region are ongoing.

Expansion study

The Expansion Study assessed both wind and solar renewable energy solutions, but concluded wind was not competitive and a solar-only option provided the optimal outcome.

Battery storage was also deemed to be uneconomic due to the high capital cost.

It highlighted that expansion could occur gradually, due to the significant supporting infrastructure surrounding the project such as the Landwehr Terminal, existing water sources as well as infrastructure that would be utilised by likely early offtake partners such as the Dampier Bunbury Natural Gas Pipeline.

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.