Frontier Energy Ltd (ASX:FHE) has completed the Pre-Front End Engineering Design (Pre-FEED) for the proposed Stage One (36.6MW) hydrogen facility to be built at its Bristol Springs Renewable Energy Project in Western Australia.
This Pre-FEED study was completed by independent global engineering and construction firm GHD, to provide a higher level of definition from the pre-feasibility study (PFS).
The hydrogen production plant project cost estimate was completed to a Class 4 level of certainty and confirmed the operating and capital costs were in-line with the PFS.
The capital cost estimate for the construction of a 36.6MW facility (and associated infrastructure) was estimated at $71.7 million ($69.8 million in PFS). The direct operating costs associated with the hydrogen facility were estimated at $2.89 million per annum.
These direct operating costs exclude water consumption. This cost is about $800,000 per annum pursuant to the Water Corporation water supply agreement (in line with the PFS estimate).
The Pre-FEED also included potential for compression and storage, which was completed to Class 5 level of certainty.
FHE is assessing all information regarding the Stage One development with the aim of releasing a definitive feasibility study (DFS) during Q1 2023.
Managing director Sam Lee Mohan said: “We are delighted with the outcome of the Pre-FEED as both capital and operating costs are in-line with the PFS estimates, despite the higher degree of certainty with estimates in the Pre-FEED (compared to the PFS) at a time when inflation globally is still at a 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 Q1 2023.”
Advancing towards DFS
FHE is advancing well towards its DFS having completed its positive PFS for the Stage One Hydrogen Project, which outlined a 114MW solar farm to power a 36.6MW alkaline electrolyser.
GHD has now completed the Pre-FEED study with the following scope and assessment:
- 36 MW Alkaline Electrolyser;
- future potential plug-and-play infrastructure for hydrogen compression system (up to 400 bar);
- future potential plug-and-play infrastructure for hydrogen storage systems to store five days (79 tonnes) of production;
- hydrogen export facilities via the following options:
- blending into the Dampier Bunbury Natural Gas Pipeline;
- road export via hydrogen truck trailer;
- provision for use in a future onsite 10MW Fuel Cell system; and
- utilities including water, wastewater and drainage;
- power;
- on-site infrastructure including major equipment buildings, warehouses and offices; and
- plug-and-play for expansion up to 150MW.
The outcome of this work resulted in the following:
- operating costs estimates for the hydrogen facility total $3.69 million per annum compared to $3.5 million pa in the PFS or a 5% increase. These costs relate to direct operating costs only and exclude the cost to acquire additional electrons from the power grid;
- capital costs for the construction of a 36.6MW facility and associated infrastructure were estimated at $71.7 million, compared to $69.8 million in the PFS or a 3% increase; and
- pre-FEED did not find any technical barriers to development of the project.
Capital estimate
A breakdown of the cost estimate based on GHD’s custom template is detailed below. The Pre-FEED also includes pre-production costs of $3 million.
Capital cost estimate for hydrogen facility construction.
Operating Costs
The PRE-FEED Class 5 estimate for total direct operating cost on an annualised basis for a 36.6MW hydrogen facility was $2.89 million per annum. A breakdown of the cost estimate is detailed below.
Operating cost estimate for hydrogen facility.