As countries around the world, including Australia, are setting ambitious targets to reduce the reliance on fossil fuel energy, Frontier Energy Ltd (ASX:FHE) is advancing the development of the Bristol Springs Solar Project (BSS Project) - a large-scale solar energy project in the southwest of Western Australia.
This is the first step in the company’s strategy to become an integrated clean energy company.
The BSS Project is designed to initially produce 114MWdc (megawatt direct current) of electricity, incorporating the latest generation technology to deliver a relatively low-cost energy solution connected to the backbone of the South West Interconnected System (SWIS).
Aerial view of the Bristol Springs Solar site.
The BSS Project is significantly advanced with development approval granted, electricity connection application in progress and world-class supporting infrastructure ensuring rapid advancement towards production.
Solar power generation of up to ~490MWdc
The BSS 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.
Well-funded for development
Frontier Energy (formerly Superior Lake Resources) recommenced trading on the ASX on March 3, 2022, following strong demand for an $8 million capital raising.
The company will use funds from the capital raising 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.
Experienced board
MD Mike Young, former BCI Minerals Ltd (ASX:BCI) 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.
Young said: “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.
“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.”
Frontier Energy ‘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.
Strategic location
That the BSS Project is strategically located in the heart of the southwest of Western Australia, is important, as this is one of the fastest-growing regional areas in Australia, and both the local population and the Western Australian government are 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 the Town of Collie and so is well located close to supporting infrastructure, including, roads, water, airports, multiple ports, and a highly-skilled local workforce.
This means future constraints others in the industry may face with more isolated projects, resulting in higher associated capital costs, should not be an issue for Frontier Energy.
Landwehr Terminal – 33/330kV transformer.
In addition, Frontier Energy will also seek to progress solar expansion opportunities adjacent to the existing landholding at the BSS Project and will review the economics of adding a battery energy storage system.
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.”
330Kv lines within 3km from BSS.