Frontier picks option to add 651ha to WA project off the back of increased renewable energy demand
Frontier Energy is aiming to increase its landholding next door to its Bristol Springs Solar (BSS) in WA by a massive 651ha, or 334%.
The company has secured exclusive options to acquire land parcels which it says hold strategic value “regarding our long-term objective to produce more than 500Mw of solar energy to power our green hydrogen strategy”.
The BSS Project occupies an area of 195ha with forecast solar production of 114Mwdc – which stands for MegaWatts defined conditions or the power output given a specific set of circumstances.
Frontier Energy (ASX:FHE) expects the project will provide enough power for 45,000 homes and abate 180,000t of CO2 emissions per year.
“In the short term, securing this ground has the potential to reduce the capital costs for Stage One development (114Mwdc), as we will be able to have a more direct access route to Landwehr Terminal and other associated infrastructure,” executive chairman Grant Davey said.
“Owning the land also allows for accelerated development, as it eliminates the significant ‘red tape’ that can traditionally be experienced if the ground was leased either through third parties or the government.
“More importantly, in the long term, by securing this ground we now have clear sight in increasing our energy production to approximately 500MW of green energy that can be used to power our green hydrogen production as well as provide green energy onto the energy grid.”
Frontier says there has also been a notable shift in long-term demand for renewable energy, both in Western Australia and across the rest of Australia, driven by government policy and proposed changes to legislation that support the company expanding its landholding around the BSS Project.
“These changes in government policy include the Western Australian Government announcing in May that it would begin investigating the implementation of a Renewable Hydrogen Target to support the growth of a renewable hydrogen industry,” the company said.
“This approach would set targets for retailers in the SWIS to procure a certain percentage of electricity fuelled by renewable hydrogen, creating a local market which would support emerging hydrogen projects and improve grid stability.”
More recently, the WA government announced it would close its last coal-fired power plant before the end of the decade and plans to invest an estimated $3.8bn in new green power infrastructure around the state.
In line with this, Frontier has been advancing both a Hydrogen Study and Expansion Study (which includes the land the subject of the Land Options) to support its move to control a greater land area surrounding the BSS Project in the future.
Both the expansion study and the hydrogen study for the project are due to be released in August.
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.