With capital and operating costs now confirmed, Frontier Energy has moved on to assess all other remaining information regarding the stage-one development with the aim of releasing a definitive feasibility study during quarter one 2023.

The Pre-FEED study, completed to provide a higher level of definition from the prefeasibility study, has set out a class-4 level of certainty for the hydrogen production cost estimate.

Operating costs estimates for the 36.6MW hydrogen facility totalled $3.69 million per annum compared to $3.5 million pa in the PFS – representing a 5% increase.

These costs relate to direct operating costs only and excludes the cost to acquire additional electrons from the power grid, Frontier Energy (ASX:FHE) says.

On the other hand, capital costs for the construction and associated infrastructure were estimated at $71.7 million, compared to $69.8 million in the PFS demonstrating a 3% increase.

The study – carried out by GHD due to its vast experience in the hydrogen industry, also included the potential for compression and storage, which was completed to class-5 level of certainty, FHE says.

‘Delighted with the outcome’

“We are delighted with the outcome of the pre-feed as both capital and operating costs are in line with the PFS estimates,” FHE managing director Sam Mohan says.

“Especially at a time when inflation globally is still at record high – more importantly, however, was that GHD found there were no technical issues or other technical barriers with the development of the hydrogen facility at the project.

“The company is currently compiling all updated information since the release of the PFS as we advance Stage One towards a DFS to be released during quarter one 2023.”

 

 

 

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.