Frontier Energy and Waroona Energy have merged to create a new company combining two large-scale solar projects in Western Australia. Frontier is the developer of the Bristol Springs Renewable Energy Project and has received development approvals for a total solar generation capacity of 355 MW. Waroona Energy is developing a 241 MW solar project on the adjacent property.
The new JV will focus on further development of green hydrogen production, hydrogen consumption in a peaking power plant and utility-scale battery storage. The company has appointed new chief executive and chief operations officers to support these initiatives, which are expected to be finalised in early 2024.
Frontier's exact game plan in accordance with Waroona Energy
The acquisition enables Frontier to control two grid connections with a capacity of exporting over 1 GW of renewable energy to the grid. With the freehold landholding of 868 hectares, Frontier is well-positioned for solar, hydrogen, and other renewable energy opportunities.
In March 2023, Frontier released a definitive feasibility study on its Bristol Springs Hydrogen Project, highlighting its potential to be one of the lowest-cost green hydrogen projects in Australia. On the other hand, Waroona has already begun research to assess a minimum 100 MW hydrogen-fuelled (dual fuel) peaking power facility at its Waroona Solar Energy Project.
With the assistance of Frontier under their existing collaboration agreements made before the takeover, the study will now be completed. The planned dual-fuel peaking plant will balance the fluctuating power need in the electricity network and operate during periods of high-level demand for electricity or shortfalls of electricity supply.
The peaking plant will be fuelled by renewable hydrogen produced from the solar energy generated at the Waroona Solar Energy Project and/or Frontier's Bristol Springs Renewable Energy Project. It will be backed up by gas sourced from suppliers and transported via the Dampier to Bunbury Natural Gas Pipeline.
Internal positions and their respective roles
Frontier Energy is restructuring its senior management team to focus on project execution after taking over Waroona Energy. Adam Kiley, the former CEO of Waroona Energy, has been appointed as the new CEO of Frontier Energy, thanks to his 20 years of experience in equity capital markets and debt financing sectors.
Warren King, an engineer with 25 years of experience in project management of engineering, design, procurement, and construction, will lead the technical and engineering aspects of the multidisciplinary project as COO. The company is looking to make a final investment decision for its 120 MWdc solar farm project.
A Frontier executive, Chair Grant Davey, narrated: "As we advance towards a development decision in 1H2024, which includes the delivery of final development studies, both equity and debt financing, procurement and project execution, the Board decided it was the right time to realign and strengthen the senior management team to focus on project financing and development execution."
Constraints faced by the company and how it was managed
The newly appointed CEO, Adam Kiley, has outlined the challenges that the recently merged company can confront. These include the issue of increasing energy prices in tandem with growing demand, as well as a dearth of fresh generation capacity due to grid constraints.
The region in question is a portion of the Collie and Kwinana industrial precincts, which is home to the Griffin coal plant. The plant was recently kept operational with a boost of $220 million (USD 146 million) from the state government.
"I believe the opportunity at Bristol Springs is one of Australia's best undeveloped renewable energy projects, and it has a tremendous head start given the vast infrastructure already in place," Kiley asserted.
"This should not only result in strong financial returns, which will be highlighted in a number of upcoming studies but will also contribute to providing security for WA's energy requirements through this energy transition," he said.
Building a self-reliant Australian renewable energy sector
Frontier and Waroona Energy are two similar companies that have transitioned from mineral resource industries to renewable energy. Both companies recognised significant growth opportunities in decarbonising mineral extraction and refining industries. Frontier Energy is fully funded until FID for Stage One. The Western Australian government has devised contracts for its 500 MW/2,000 MWh big battery in Collie and the 200 MW//800 MWh extension to the existing Kwinana battery.
Another large renewable energy project for the production of green hydrogen is currently being put through a feasibility study. Perth-based company International Graphite selected the preferred site for its proposed Collie graphite battery anode material (BAM) manufacturing facility.
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