Frontier Energy Ltd (ASX:FHE) hit a new high on kicking off a renewable energy expansion and green hydrogen study at its Bristol Springs Solar (BSS) Project in Western Australia.
Through the expansion study, the clean energy company hopes to increase the BSS asset’s power capacity beyond 500 megawatts of direct current (MWdc).
In tandem, the green hydrogen study will consider how future clean energy production at the BSS could tie in with green hydrogen generation.
Ultimately, both studies underpin FHE’s long-term strategy to become an Australia-focused, integrated clean energy company, as well as the West Australian Government’s aim to become a global leader in the green hydrogen industry.
In the long run, the BSS Project is projected to provide enough power for 45,000 homes and abate 180,000 tonnes of carbon emissions every year.
The project is 120 kilometres south of Perth, within the ‘Golden Triangle’ of Kwinana-Bunbury-Collie — a key region that provides supporting infrastructure and potential offtake customers.
Establishing early-mover advantage
Commenting on the studies, Frontier managing director Mike Young said: “The development of our Bristol Springs Project is well advanced, but the current project (114Mwdc) is only the first stage of our long-term vision.
“With vast opportunities for solar expansion as well as other renewable energy solutions, we believe there is future potential to increase the power capacity at the project to in excess of 500MWdc.
“These studies will be led by experienced consultancy Xodus Group, who will consider a range of clean energy scenarios as well as the potential for Green Hydrogen production.
“With the Western Australian Government’s plans for Green Hydrogen to match LNG market share by 2030, having an early mover advantage in this sector is essential.
“We look forward to the outcome of these techno-economic studies as we continue to enthusiastically advance the development of Bristol Springs Project to potentially have stage one under construction by this time next year.”
Shares were as much as 23% higher intraday to $0.27, a new record high for the company.
Studies underway
The initial stage of Frontier’s clean energy strategy comes under Stage One of the BSS Project, with construction piqued to commence in early 2023.
Stage One will carry an installed power capacity of 114MWdc and has already received development approval, while an electricity connection application (ETAC) is in progress with Western Power.
In addition to Stage One, Frontier has kicked off multiple workstreams around solar, wind and battery energy storage as it looks at ways it can increase the power capacity at BSS to more than 500MWdc.
FHE is also considering its place in WA’s emerging green hydrogen market.
Its planned work programs include a hydrogen market assessment and a distribution analysis that will drive the techno-economic evaluation for the production, storage and export of green hydrogen produced using clean energy from the BSS Project.
In parallel, the company will complete a hydrogen market assessment to identify potential offtake partners and market prices for green hydrogen.
Making a name in clean energy
In 2019, the Australian Federal Government outlined a National Hydrogen Strategy, which sets a vision for a clean, innovative, safe and competitive hydrogen industry down under.
Essentially, it aims to position Australia’s industry as a major global player in the space by 2030.
In addition, the Western Australian Government also adopted its own Renewable Hydrogen Strategy, which aims to harness WA's own competitive advantages.
Launched in November 2020, the WA Renewable Hydrogen Roadmap is the next step on WA's renewable hydrogen journey.
It identifies 26 initiatives the WA Government is driving and supporting to realise the WA Renewable Hydrogen Strategy's vision, mission and goals.
There’s a key focus on export, remote applications for renewable hydrogen, hydrogen blending in natural gas networks and transport in the western state, and Frontier is eager to contribute to that vision.
What does the future look like?
By 2030, the state government hopes that its market share in global hydrogen exports is similar to its share in LNG today.
There’s also a vision for WA's gas pipelines and networks to contain up to 10% of a renewable hydrogen blend and to get renewable hydrogen into mining haulage vehicles.
Finally, less than a decade from now, WA’s legislators want renewable hydrogen to be a large fuel source for transportation in regional WA.