Frontier Energy Ltd (ASX:FHE) has recommenced trading on ASX following strong demand for an $8 million capital raising validating its new strategy focused on clean energy.
The company is developing the Bristol Springs Solar Project (BSS Project), a large-scale solar energy project with initial production of 114MW dc of electricity planned in Western Australia’s South West, 120 kilometres south of Perth and near several industrial precincts.
BSS Project well advanced
BSS Project is significantly advanced with development approval granted, electricity connection application in progress and world-class supporting infrastructure ensuring rapid advancement towards production.
This project is the first step in the company’s strategy to become an integrated clean energy company. FHE was formerly Superior Lake Resources.
“Growth opportunities”
Managing director Mike Young said, “The renewable energy industry offers significant growth opportunities, particularly to support nearby aluminium mining and the Collie and Kwinana industrial precincts, all of which require massive decarbonisation. This is why we decided to transition from mining exploration and focus on clean energy opportunities.
“The BSS Project is strategically located in the heart of WA’s southwest, one of the fastest-growing regional areas in Australia. The local population and the WA Government are extremely supportive and progressive regarding the future requirement for renewable energy solutions in the region.
“The BSS Project is close to the Port of Bunbury and is well located near excellent supporting infrastructure including, roads, water, airports, multiple ports, and a highly-skilled local workforce, giving it an advantage over similar but more isolated projects.”
Initial focus for FHE will be assessing the potential expansion of the BSS Project and additional clean energy alternatives in the future, including wind energy, storage as well as green hydrogen production.
Latest generation technology
BSS Project will incorporate the latest generation technology to deliver a relatively low-cost energy solution connected into the backbone of the South West Interconnected System (SWIS).
Aerial view of the Bristol Springs Solar site.
The project has received development approval from the WA Regional Development Assessment Panel, and an application for an electricity transfer access contract (ETAC) is in progress with Western Power. The ETAC will provide the company with access to the SWIS.
Additional land acquisition opportunities are available that could allow an increase in solar power generation of up to ~490MWdc.
Experienced board
MD Mike Young, former BC Iron and Vimy Resources chief, is part of a strong and experienced board and management team, including Grant Davey as chairman, experienced Chartered Accountant Chris Bath as executive director and chief financial officer and senior WA media and advertising executive Dixie Marshall as a non-executive director.
“We have assembled a balanced and well-respected board of directors and management team, with extensive Western Australian experience in project development and capital markets,” Young said.
“Importantly, we have strong relationships with key stakeholders, including major players in the Western Australian electricity market, end-users, local communities and both State and Federal government.”
FHE’s capital raising was strongly supported with the board and management team contributing ~$1.9 million of the total $8 million capital raising, including $1 million from chairman Davey. BW Equities was lead manager to the raising.
Funds will enable FHE to continue development of the BSS Project, including payment of land option and lease fees, complete solar front end engineering design (FEED), undertake a range of studies relating to the project and for working capital and transaction expenses.
Landwehr Terminal – 33/330kV transformer.
Assessing clean energy alternatives
The company will also assess other renewable energy projects, including wind, solar and green hydrogen.
“One area we are keen to assess is production of green hydrogen," Young added. "This is in line with the WA Government’s plan to produce and export green hydrogen by 2030 in the same quantity as LNG gas produced for export.
"This strategy, led by Hydrogen Minister Alannah MacTiernan, has highlighted the need for WA green energy projects and hydrogen manufacturing capability.
“We will also look at investing in other renewable energy projects, such as wind projects or other solar projects.”
The company has re-complied with ASX Listing Rules Chapters 1 and 2 reflecting the change in its principal activities from a mining exploration company to a clean energy company.
Shares opened at $0.165 and traded from $0.155 to $0.222 with more than 3.241 million changing hands before closing at the opening price.