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Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to announce the successful acquisition of Waroona Energy Inc. (TSXV: WHE) (Waroona), creating Western Australia’s largest renewable energy development company. Frontier is developing the Bristol Springs Renewable Energy Project (Project) in southwest WA.
In October 2023, Frontier announced1 an agreement to acquire all outstanding Waroona shares (the Transaction) not held by Frontier (Frontier held ~20% of Waroona) via a Canadian Plan of Arrangement (Share Plan), equivalent to an Australian Scheme of Arrangement.
HIGHLIGHTS
- Acquisition of Waroona completed with shareholders voting overwhelming in favour of the Transaction (440,339,196 voting in favour and 1,507 against)
- All other conditions necessary to complete the transaction, including a final order approving the Arrangement from the Supreme Court of British Columbia, have been satisfied, and the Transaction has completed
- Frontier will have 446m shares on issue, with 147m shares being issued to Waroona shareholders
- Frontier now controls two grid connections, which will be capable of exporting >1GW renewable energy to the grid, and freehold landholding of 868ha ideal for solar, hydrogen and other renewable energy opportunities
- Solar development approvals in place for 355MW, ranking the Project as one of Australia’s largest solar farms once developed
- DFS for Stage One, 120MWdc solar development, is nearing completion. Stage One progressing towards Final Investment Decision (FID) in 1H24
- Cash balance at completion of ~A$12.3m2, fully funding the Company until a Final Investment Decision on Stage One
- Communication with all key stakeholders, including, government, local community, first nations, prospective financiers and shareholders to accelerate development is now simplified following completion of the transaction
- The Company continues to assess multiple value-added initiatives that potential uplift solar energy valuations, including hydrogen, peaking plant and battery scenarios, with results expected in 1H24
- Green hydrogen fuelled peaking power plant study due for delivery in 1Q24
- The WA government has commenced reviewing the reference technology for Reserve Capacity with early indications that it may change from a heavy-duty open cycle turbine (peaking plants) to batteries3
- The Company aims to create WA’s largest vertically integrated renewable energy hub at Bristol Springs
Managing Director Sam Lee Mohan commented:
“Combining Frontier and Waroona provides the opportunity to develop one of WA’s largest solar projects in the fastest and most capital efficient manner, while also creating the critical mass required to secure financing.
With the transaction complete, we are fully focused on moving Stage One towards a Final Investment Decision in 1H24. There will be strong news flow over coming months, including the finalisation of studies and financing activities.
The Company has been assessing a number of strategies that have the potential to add significant value to Stage One development plans, and we continue to assess long term growth opportunities to make the Project one of WA’s largest diversified renewable energy hubs.
I thank shareholders for their continued support through 2023 as we look forward to 2024, where we expect development of the project to be in full swing by this time next year.”
Figure 1: Frontier freehold land in Waroona increases to 868ha
Frontier completes acquisition of Waroona Energy Inc.
Frontier has completed its previously announced Share Plan with Waroona, resulting in Waroona becoming a subsidiary of Frontier.
The Share Plan was approved at a special meeting of shareholders of Waroona held on 8 December 2023, followed by the issuance of a final order approving the Arrangement from the Supreme Court of British Columbia on 13 December 2023. The formal Management Information Circular issued by Waroona and dated 6 November 2023 as submitted to Frontier has completed its previously announced Share Plan with Waroona, resulting in Waroona becoming a subsidiary of Frontier.
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FHE:AU
Energy Technologies: High-quality Cable Manufacturer and Re-seller for the Expanding Energy Market
With a strong foothold in the manufacturing and distribution of copper-insulated cables, Australia-based Energy Technologies (ASX:EGY) is poised to capitalize on the growing renewable energy sector through strategic global partnerships presenting a compelling investment opportunity. The company''s wholly owned subsidiary, Bambach Wires and Cables, is the oldest cable manufacturer in Australia, and its extensive history underpins a reputation for reliability and quality.
Energy Technologies focuses its factory operations on higher-margin product lines while employing a balanced strategy of manufacturing and purchasing cables for sale. Its Rosedale facility is a significant upgrade in its manufacturing capabilities equipped with a high level of automation that supports production efficiency, processing up to 250 tonnes of copper monthly, with room for additional capacity if demand rises.
Energy Technologies also engages in purchased sales by sourcing lower-margin products from rigorously vetted suppliers throughout the globe. This approach ensures Energy Technologies can meet market demand without overextending its manufacturing resources. Purchased sales for FY25 are projected to contribute an additional AU$6.7 million to the company’s revenue.
Company Highlights
- Energy Technologies produces low-, medium-, and high-voltage cables, with over 90 percent of its materials sourced locally in Australia.
- The company is strategically aligned with electrification and renewable energy trends, catering to infrastructure, solar, wind and mining industries.
- Key partnerships with Gantner Instruments and Tratos Group expand its product offerings for solar farms, wind turbines and subsea transmission lines.
- The company’s partnerships position it as a comprehensive supplier for large-scale renewable energy projects, projected to grow to AU$6 billion annually by 2034.
This Energy Technologies profile is part of a paid investor education campaign.*
Click here to connect with Energy Technologies (ASX:EGY) to receive an Investor Presentation
Energy Technologies
Investor Insight
Leveraging its long-history and reputation as a cable manufacturer, Energy Technologies’ (EGY) push to capitalize on the growing renewable energy sector through strategic global partnerships present a compelling investment opportunity.
Overview
Australia-based Energy Technologies (ASX:EGY) has a strong foothold in the manufacture and distribution of copper-insulated cables through its wholly owned subsidiary, Bambach Wires and Cables. Since its acquisition by Energy Technologies, the company has served as a cornerstone of the company’s operations. Founded in 1936, the company is the oldest cable manufacturer in Australia, and its extensive history underpins a reputation for reliability and quality. With a manufacturing facility in Rosedale, Victoria, and sales offices in New South Wales, Western Australia, and Victoria, the company provides comprehensive solutions tailored to the needs of critical sectors including infrastructure, renewable energy, defense and mining. Energy Technologies’ commitment to supporting Australian industry is reflected in its products. Over 90 percent of raw materials used for its cable products, like copper and plastic, are locally sourced.
Energy Technologies employs a balanced strategy of manufacturing and purchasing cables for sale. The company focuses its factory operations on higher-margin product lines, while lower-margin cables are sourced from strategic manufacturers located around the globe, coupled with a wholesale distribution department, which capitalises on complimentary products & services in strategic market segments. This approach enhances cash flow management and operational efficiency.
The company’s Rosedale facility is a significant upgrade in its manufacturing capabilities. Situated on 122 acres, this location provides ample space for future expansion. The plant’s high level of automation supports production efficiency, processing up to 250 tonnes of copper monthly, with room for additional capacity if demand rises.
Strategic Review of Business Operations
Energy Technologies has focused on building strong partnerships to expand its product range and market reach. A key strategy for growth is to develop alliances with larger entities to enable Bambach to scale its distribution and provide specialized products to niche markets.
One such alliance is with Gantner Instruments, a full-service photovoltaic (PV) monitoring and control supplier for utility scale PV power plants. Under the distribution agreement with Gantner, Bambach supplies the renewable energy sector with certified, specialized low-voltage cables, connectors, weather stations and DC combiner boxes. These products are essential for delivering power from solar panels to inverters, which is a critical component in renewable energy infrastructure.
According to projections, the annual spending on utility-scale solar farms in Australia will reach AU$6 billion over the next decade. This growth is segmented into three phases:
- Initial surge (2024 to 2026): AU$2.5 billion to $3.5 billion annually.
- Accelerated growth (2027 to 2029): AU$3.5 billion to $5 billion annually.
- Mature market phase (2030-2034): AU$4.5 billion to $6 billion annually.
Another critical partnership for Energy Technologies is with Tratos Group, a leading Italian cable manufacturer. This agreement has significantly expanded Energy Technologies’ product portfolio, allowing the company to offer medium- and high-voltage cables, as well as solutions for subsea transmission lines, offshore and onshore wind turbines, and mining operations. These additions bolster the company’s ability to address the growing demand in the renewable energy and mining sectors, while also diversifying its market reach.
Manufacturing and Purchased Sales Strategy
Energy Technologies employs a dual approach to sales through a combination of manufactured and purchased products. Its factory in Rosedale focuses on high-margin, specialized cable products that cater to sectors such as renewable energy, rail road, and infrastructure.
For FY25, the company is forecasting manufactured gross margins exceeding 23 percent. To complement its manufacturing capabilities, the company also engages in purchased sales by sourcing lower-margin products from rigorously vetted suppliers throughout the globe. This approach ensures Energy Technologies can meet market demand without overextending its manufacturing resources. Purchased sales for FY25 are projected to contribute an additional AU$6.7 million to the company’s revenue.
Company Highlights
- Energy Technologies produces low-, medium-, and high-voltage cables, with over 90 percent of its materials sourced locally in Australia.
- The company is strategically aligned with electrification and renewable energy trends, catering to infrastructure, solar, wind and mining industries.
- Key partnerships with Gantner Instruments and Tratos Group expand its product offerings for solar farms, wind turbines and subsea transmission lines.
- The company’s partnerships position it as a comprehensive supplier for large-scale renewable energy projects, projected to grow to AU$6 billion annually by 2034.
Provaris Energy: Enabling Clean Energy Supply Chains via Innovative Hydrogen, CO2 Storage and Transport Solutions
Provaris (ASX:PV1), a leading innovator in the green hydrogen sector is well-positioned to be an important part of the European green hydrogen supply chain through its groundbreaking compressed hydrogen solutions. The company's proprietary tank IP and innovative ship design support its vision to develop a portfolio of integrated green hydrogen projects.
Provaris’ innovative H2Neo carrier solution offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for clean energy while overcoming the logistical challenges associated with green hydrogen distribution.
Provaris is expanding its portfolio to include CO2 storage technologies, a move that aligns with the company's core competencies in gas handling and storage, while addressing the growing demand for large scale CO2 storage and transport solutions in the European market, and beyond.
Company Highlights
- Provaris is a leading innovator in the green hydrogen sector, leveraging its proprietary compressed hydrogen technology to develop sustainable, clean energy supply chains across Europe.
- The company combines proven technology and unique IP for cost-effective hydrogen storage and transport solutions, with a first-mover advantage through its proprietary ship design and low-cost delivery.
- Provaris has established strong strategic partners across Europe, enhancing its credibility in delivering hydrogen to market
- In addition to green hydrogen, the company is leveraging its tank IP for application into the established CO2 storage and shipping market.
This Provaris Energy profile is part of a paid investor education campaign.*
Click here to connect with Provaris Energy (ASX:PV1) to receive an Investor Presentation