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Frontier Energy
Overview
As Western Australia continues to face a looming energy supply-demand deficit within the next decade, significant investments in power generation for the region are imminent and Frontier Energy (ASX: FHE , OTCQB:FRHYF) is perfectly positioned to potentially become not only a key part of the State’s energy solution in the immediate future, but also benefit from what is forecasted to be record-high energy prices.
The South West Interconnected System (SWIS), the main electricity grid for Western Australia’s southwest region, is in immediate need of considerable investment in electricity generation for the region, with the Australian Energy Market Operator projecting an increase in energy demand of between 78 and 220 percent.
The challenges this forecast represents are only further exacerbated by the Federal Government's plans around renewable energy. By 2030, Australia aims for 82 percent renewable power generation. This includes the planned closure of all coal-fired power capacity by the same year, which represents roughly 30 percent of supply.
Only 35 percent of the SWIS is currently generated by renewable energy.
Whilst the State is planning a major expansion of the grid, this will take time and considerable cost. Following this expansion, additional investment and further time for approvals are required to develop new energy to connect to the grid.
WA’s issues are by no means an isolated event on a global scale, with grid constraints consistently identified as the major roadblock to achieving its renewable energy targets, all while also ensuring energy security and stable supply.
Frontier Energy, a near-term, fully integrated renewable energy and hydrogen developer, will be able to meet the market’s urgent requirement for energy with the development of their Stage One (120MW) solar project to commence construction in 2024.
This, however, is really only the start for Frontier, as they have outlined a three-pronged strategy that aims to not only meet these urgent energy requirements and higher prices, but also position the company for future growth industries, such as hydrogen. This strategy will see the company develop three critical areas of the business: solar, hydrogen and a dual fueled hydrogen (natural gas) peaking plant.
The reason Frontier is ready to move forward so quickly is that the flagship project where everything is taking place, Bristol Springs, benefits from world-class infrastructure and strategic partnerships, which include an agreement with Western Australia's Water Corporation, access to the Dampier Bunbury Pipeline, pre-approved power connections, and 868 hectares of freehold land with no native title. Without these assets and partnerships, the project's capex would have increased by over $1 billion and its production timeline would extend to more than five years. In addition, all permits and approvals for the project have already been secured.
Perhaps the most critical aspect, however, is that the connection to the WA electricity network is already in place. These connections are extremely difficult to access and take years to establish.
Frontier is looking far beyond its Stage One development as the company recently announced the planned acquisition of Waroona Energy (TSXV: WHE ) that will be completed in December 2023. This transaction will give Frontier access to 355 MW of shovel-ready solar generation, with potential to expand to over 1 GW, which can potentially play an important role in the State’s energy requirements.
Renewable Energy solution in the heart of industrial WA
Company Highlights
- Frontier's flagship project, Bristol Springs, has access to world-class infrastructure which considerably reduces both upfront capex and its overall development timeline.
- The acquisition of Waroona Energy will serve as a capstone on Frontier's development strategy, adding 355 MW of solar power generation with the capacity to expand up to 1 GW.
- The company is expected to generate major news flow as it moves towards FID on multiple development opportunities in 2024.
- These are the strongest ever market conditions for both renewable energy and hydrogen deployment. A near-term, fully integrated renewable energy and hydrogen producer, Frontier Energy is ideally positioned to benefit from these conditions.
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The South West Interconnected System, Western Australia's primary power grid and energy market, is in dire need of investment in new electricity generation.
- The current demand forecast over the next decade ranges from 78 percent to 220 percent. Meeting this demand will be even more challenging given that the State intends to close all coal-fired power capacity, which currently accounts for roughly 30 percent of power generation, by 2030.
- SWIS currently generates only 35 percent of its power through renewables, far below the Australian government's target of 82 percent.
- The company has a three-pronged development strategy, beginning with the establishment of solar infrastructure as a foundation followed by the planned construction of a dual-fuel hydrogen peaking plant and entry into the green hydrogen market.
- Frontier's end goal is to develop a scalable renewable energy hub which will create long-term sustainable value and provide a significant contribution to both the State and Federal decarbonisation strategy.
Key Project
Bristol Springs
Situated 120 kilometres from Perth, Frontier's Bristol Springs Renewable Energy and Green Hydrogen project is on track to commence construction of Stage One solar development in 2024. The 868-hectare project is located on flat, predominantly cleared freehold land which is just 3.5 kilometres from the Landwehr Power Terminal, less than 3 kilometres from the Stirling Trunk Main Water Pipeline and 3 kilometres from a gas branching point connected to the Dampier-Bunbury Pipeline. Its proximity to this infrastructure reduces the project's upfront capex and significantly accelerates its development timeline.
Frontier is currently working on a proposed acquisition of Waroona Energy for which it has already signed a Letter of Intent . This transaction, once completed, will transform Frontier into a large-scale renewable energy company with shovel-ready solar generation of 355 MW and the potential for expansion to over 1 GW. This acquisition also provides Frontier with a unique, accelerated turnkey solution for the development and consumption of green hydrogen courtesy of Waroona's proposed 120 MW dual fuel peaking plant, potentially positioning Frontier as the leading developer of green hydrogen in the country.
All development on Bristol Springs will be carried out with a focus on sustainability, as detailed in Frontier's Q2 2023 inaugural Sustainability Report.
Project Highlights:
- Betting on Solar : Solar energy is one of the most advanced and most reliable renewable energy solutions, particularly in Australia, which has some of the best conditions for generating solar power. Capital costs for solar have also fallen significantly over the past decade, whilst innovation upside is arguably near its peak.
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Meeting a Market Need
: Frontier's multi-pronged strategy is aimed at meeting the needs of the electricity market whilst simultaneously maximising its profitability:
- Solar energy will power the company's hydrogen strategy during low-price/shoulder periods.
- Green hydrogen production will take place during midday.
- A peaking plant will operate in the early evening and early morning, during times of peak energy consumption.
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Accelerated Development
: Bristol Springs benefits from the following agreements, policies and infrastructure:
- The Landwehr Terminal will provide the project's completed grid with up to 1.1 GW of electricity export capacity through two connections.
- An agreement with the Water Corporation gives the project access to 1,250 kl of clean, fresh water per day and eliminates the cost of constructing a desalination facility (water is an essential element to create green hydrogen – the other being renewable energy).
- Frontier intends to leverage the Australian Government's Hydrogen Headstart program for further development. It currently meets all criteria for consideration.
- A potential connection point to the DBNGP, Australia's largest natural gas pipeline, is located just 0.3 kilometres from the site of the project's proposed hydrogen plant. Federal and State governments have already begun the process of amending natural gas laws and regulations to introduce hydrogen and associated gasses.
- Current Progress : Stage one development of the project is nearing its final investment decision (FID). Frontier/Waroona commenced a DFS for a 120-MWdc solar facility, which will deliver a fixed cost estimate and finalise the design, size and technology selection.
- A Pathway for Green Hydrogen Consumption : Waroona Energy has commenced a study to assess the development of a green hydrogen dual fuel peaking plant which is expected to be completed in Q4 2023. The 120-MW peaking plant, which can be fuelled by both green hydrogen and natural gas, would generate a minimum of ~AU$27million per annum in revenue.
Management Team
Samuel Lee Mohan — Managing Director
Samuel Lee Mohan is an accomplished energy executive with over 20 years of experience in the energy and utilities industry. His experience spans many facets of the industry, from design and construction through to strategic asset management, regulation, policy, commercial and innovation.
His previous senior management positions include Global Head of Hydrogen of Xodus Group, a subsidiary of Subsea 7, where he developed and led the company’s overall hydrogen strategy. In this role, he also conceptualised the company’s largest hydrogen project, Project MercurHy. Prior to Xodus Group, Lee Mohan spent six years at ATCO, where he was instrumental in developing the company’s hydrogen strategy including the conceptualisation, design and construction of Australia’s first green hydrogen Microgrid, the Clean Energy Innovation Hub.
Lee Mohan earned his MSc in mechanical engineering from the University of Portsmouth and an MBA from the Australian Institute of Business.
Grant Davey — Executive Chair
Grant Davey is an entrepreneur with 30 years of senior management and operational experience in the development, construction and operation of global mining and energy projects.
He is the chairman of Frontier Energy (ASX:FHE), director of Lotus Resources (ASX:LOT) and Cradle Resources (ASX:CXX), and is a member of the Australian Institute of Company Directors.
Chris Bath — Executive Director
Chris Bath is a chartered accountant and member of the Australian Institute of Company Directors with over 20 years of senior management experience in the energy and resources sector, both in Australia and Southeast Asia. Bath has broad experience including financial reporting, commercial management, project acquisition, ASX compliance and governance. He is a non-executive director of Cradle Resources and company secretary of Copper Strike.
Dixie Marshall — Non-executive Director
Dixie Marshall has 40 years’ experience in strategic communications including crisis communications, editorial media, advertising, marketing and government communications.
Currently the chief growth officer of Marketforce, WA’s oldest advertising agency, Marshall previously worked as the Western Australian Government’s director of strategic communications as well as for the Nine Network as a senior news anchor. Currently, she serves as the deputy chair of the WA Football Commission and a commissioner of The Australian Sports Commission and is also a director of ASX-listed Lotus Resources.
Amanda Reid — Non-executive Director
Amanda Reid has a significant background in government relations, providing advice to a wide cross section of companies and organisations for more than 15 years for two national government relations and corporate communications firms. This included five years as Partner at GRA Partners. She was also a senior adviser in previous WA state governments with responsibility for managing a strategic communications unit.
She has held non-executive board positions across both private companies and not-for-profit organisations and is a member of the Australian Institute of Company Directors.
Catherine Anderson — Company Secretary
Catherine Anderson (B Juris (Hons), LLB (UWA)) is a legal practitioner admitted in Western Australia and Victoria with over 30 years’ experience in both high-level private practice and in-house roles, particularly in the area of capital raisings, corporate acquisitions, structuring and regulatory compliance. She has advised on all aspects of corporate and commercial law and brings extensive experience over a range of industries, in particular the mining and IT/cyber security sectors.
Anderson is an experienced company secretary for both listed and unlisted public companies, and has served as a director of an ASX listed junior explorer. She has provided consultancy services to entities wishing to proceed to IPO and ASX listing and has twice been nominated for the Telstra Business Woman of the Year Award.
Warren King — Technical Director (Energy)
Warren King is an engineer with 25 years of experience, specialising in the client-side project management of the engineering, design, procurement and construction of mineral processing plants and mine infrastructure (including various gas power solutions and solar). He has worked in Africa, Indonesia and Australia and holds both a Bachelor of Engineering (mechanical) and a Bachelor of Laws degree.
King has implemented and managed various project execution models (such as EPC, EPCM, and EP with owner managed construction).
Amy Sullivan — ESG Manager
Amy Sullivan has almost 20 years’ experience in the mining industry across Australia, holding executive roles in approvals, environment, community and government relations. Whilst working with VHM Limited, she led the approvals and growth team for the Goschen Rare Earths and Mineral Sands Project and played a key role in establishing relationships with government, local councils and the community as well as managing the State and Commonwealth approvals strategy, including obtaining major project status.
More recently, Sullivan practised as a sustainability and ESG consultant working with companies to implement ESG and sustainability strategies. She holds a Bachelor of Environmental Management with Honours from the University of Notre Dame.
Martin Stulpner — Corporate Development Manager
Martin Stulpner has over 20 years’ experience in the mining and financial services industries, including in corporate development, M&A, strategic planning and equity research (sell side).
Stuplner's previous senior leadership positions include GM at Aquila Resources, where he was accountable for Aquila’s stake in the West Pilbara Iron Ore Project (now under construction as the $3-billion Onslow Iron Project) and for Aquila’s South African business. As director at Macquarie, he provided equity research of Western Australian metals and mining companies to institutional investors in Australia and globally.
Lastly, as VP of strategy at Anglo American Ferrous Metals (FTSE 100), Stulpner developed and led a global strategic planning team to facilitate informed strategic decision making by the executive.
NEO Battery Materials: Disrupting the EV Market with Innovative Silicon Anode Material
NEO Battery Materials Ltd. (TSXV:NBM; OTCQB: NBMFF) is positioning itself as a low-cost, high-performance silicon anode material supplier for EV lithium-ion batteries. The company’s patented technology, called NBMSiDE®, offers cost-effective, longer-running and ultra-fast-charging batteries compared to existing state-of-the-art graphite anode materials. NBM is aiming to achieve the 1,000-mile battery for EVs using its silicon anode materials.
NBM claims NBMSiDE® could manage and resolve the volume expansion problem by coating the silicon particles with mechanically durable nanomaterials such as elastic polymers and carbon nanotubes. There are currently eight patents issued and pending for this technology across various jurisdictions.
Key Technology: NBMSiDE®
NBMSiDE® is paving the way for cost-effective, longer-running and ultra-fast-charging batteries, which can drive down the EV costs and ultimately increase EV adoption. The company aims to achieve the 1,000-mile battery for EVs using its silicon anode materials.
Company Highlights
- NEO Battery Materials is a Canada-based battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles (EV), electronics and energy storage systems.
- The company’s patented technology, called NBMSiDE®, offers cost-effective, longer-running and ultra-fast-charging batteries compared to existing state-of-the-art graphite anode materials. NBM is aiming to achieve the 1,000-mile battery for EVs using its silicon anode materials.
- NBM is positioning itself as a low-cost, high-performance silicon anode material supplier for EV lithium-ion batteries. NBM’s ability to manufacture silicon anode materials economically and efficiently is a vital point of differentiation from existing competitors.
- NEO Battery Materials has signed more than 60 NDAs with global-tier companies, including battery cell manufacturers, EV automakers, electronics manufacturers and high-profile battery supply chain companies. With these parties, NBM is conducting more than 20 active material evaluations to strike milestone joint development, collaboration and offtake agreements .
- The company is planning to construct commercial plants both in Canada and South Korea to manufacture NBMSiDE®. Further, NBM is aiming to build additional plants in the U.S. and Europe to establish itself as a global top 10 silicon anode supplier in the EV battery industry.
This Neo Battery Materials profile is part of a paid investor education campaign .*
NEO Battery Materials
Overview
NEO Battery Materials Ltd. (TSXV: NBM ; OTCQB: NBMFF) is a Canada-based battery technology company focused on developing silicon anode material for lithium-ion batteries used in electric vehicles (EV), electronics and energy storage systems.The company’s patented silicon anode technology, called NBMSiDE®, utilizes an energy-efficient, one-step nano coating process to i) enable ultra-fast charging, ii) increase EV driving range by greater than 20 percent, and iii) manufacture more than 70 percent cheaper compared to competitors. NBMSiDE® coats strong, durable nanomaterials on the surface of the silicon particles to effectively resolve silicon’s volume expansion problem, enabling reliability and high performance in EV lithium-ion batteries.
Why Silicon and Global Market Growth
EV batteries are composed of four major parts – cathode, anode, separator and electrolyte. Highly discussed battery metals like lithium, cobalt, nickel and manganese are synthesized to form the cathode material. On the anode side, graphite has long been the go-to material since the commercialization of lithium-ion batteries, but major issues, especially with respect to low capacity and slow charging, are impeding the growth of EV adoption globally.
Silicon is recognized as the solely available material to resolve graphite’s deficiencies, offering the allure of high capacity and faster charging times. Given the urgency to integrate silicon as a critical component in EV batteries, the global silicon anode market is expected to grow rapidly from around US$0.4 billion in 2022 to US$28.7 billion in 2032, representing a compound annual growth rate of 54 percent. However, for all its advantages, silicon has its own set of challenges.
During the charge and discharge cycle, silicon tends to expand more than 300 percent in volume, and stabilizing the material has been a significant challenge to the industry. Conventional approaches to mitigate the volume expansion problem of silicon anodes are expensive and unscalable due to energy-intensive processes and high-cost input feedstocks. Most of the companies using silicon anode rely on costly manufacturing processes to circumvent the issue, resulting in a price point that is approximately eight times (US$80 per kilogram) more expensive than graphite anode (US$10 per kg).
Company Highlights
- NEO Battery Materials is a Canada-based battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles (EV), electronics and energy storage systems.
- The company’s patented technology, called NBMSiDE®, offers cost-effective, longer-running and ultra-fast-charging batteries compared to existing state-of-the-art graphite anode materials. NBM is aiming to achieve the 1,000-mile battery for EVs using its silicon anode materials.
- NBM is positioning itself as a low-cost, high-performance silicon anode material supplier for EV lithium-ion batteries. NBM’s ability to manufacture silicon anode materials economically and efficiently is a vital point of differentiation from existing competitors.
- NEO Battery Materials has signed more than 60 NDAs with global-tier companies, including battery cell manufacturers, EV automakers, electronics manufacturers and high-profile battery supply chain companies. With these parties, NBM is conducting more than 20 active material evaluations to strike milestone joint development, collaboration and offtake agreements .
- The company is planning to construct commercial plants both in Canada and South Korea to manufacture NBMSiDE®. Further, NBM is aiming to build additional plants in the U.S. and Europe to establish itself as a global top 10 silicon anode supplier in the EV battery industry.
Key Technology: NBMSiDE®
NBM claims its patented silicon anode technology, called NBMSiDE®, could manage and resolve the volume expansion problem by coating the silicon particles with mechanically durable nanomaterials such as elastic polymers and carbon nanotubes. There are currently eight patents issued and pending for this technology across various jurisdictions.
NBM’s proprietary one-step process enables substantially lower production costs than other silicon anode materials. NBM simultaneously mixes and nanocoats the silicon precursor, additives and nano coating materials to manufacture the final product. Unlike competitors that manufacture in multi-steps at high temperatures of >1,500 degrees Celsius and/or in vacuum systems, NBMSiDE® is produced at room temperature and pressure, realizing significant energy savings and reducing carbon emissions. NBM’s ability to economically manufacture silicon anode materials is a vital point of differentiation from existing companies.
NEO Battery Materials’ innovative NBMSiDE® places the company in an ideal position to leverage this exponential market growth, led by a management team with a proven track record in the global battery industry.
NBMSiDE® is paving the way for cost-effective, longer-running and ultra-fast-charging batteries, which can drive down the EV costs and ultimately increase EV adoption. The company aims to achieve the 1,000-mile battery for EVs using its silicon anode materials.
NBM has further optimized its one-step process to achieve consistent, uniform nano coating capabilities – a key factor for high performance and quality control. Uniform nano coating layers reinforced silicon’s structural durability, demonstrating over a 70 percent increase in battery cycle life improvement. NBMSiDE® also retains more than 70 percent higher initial battery capacity (measured in mAh/g) compared to competitors and has realized 5-minute ultra-fast charging in tests.
Successful development and key benefits of NBMSiDE® has caught the interest of downstream users. Having signed more than 60 non-disclosure agreements, which include global battery cell manufacturers and EV automakers, NBM is prioritizing to ink multiple milestone agreements such as joint developments, collaborations and offtakes. To date, the company is conducting more than 20 active material evaluations with global NDA parties to attain such value-creating milestones.
Due to technological breakthroughs, downstream customers’ demand for NBMSiDE® has experienced an uptick. To alleviate bottlenecks and order backlogs, NBM is relocating to an expansion facility with larger manufacturing and testing equipment. The company plans to hire additional research engineers to increase the overall R&D productivity for commercialization.
Commercialization will be achieved through constructing mass production plants in Canada and South Korea. With an initial capacity of 240 tons per year, the final plant capacity is estimated to reach 5,000 tons per year. Subsequently, NBM aims to extend its global presence by establishing additional commercial plants in the U.S. and Europe through joint ventures.
With the initial capacity, NBM anticipates an initial revenue of US$12 million representing a supply capacity for 80,000 to 160,000 EVs. At full capacity, revenue generation could increase to US$250 million. NBM plans to build at least three commercial plants by 2030, giving it a capacity of 15,000 tons per year to position itself as a global top 10 silicon anode supplier.
Management Team
Spencer Huh – Director, President and CEO
Spencer Huh has more than 25 years of financial and operational experience in Canada and Korea, with expertise in financial operations, strategy, performance management, and business planning. In the early part of his career, he worked as an investment advisor with large companies such as Hanwha Securities, TD Canada Trust, and BMO Nesbitt Burns. Since 2012, Huh has worked with numerous private and publicly listed companies in Korea and Canada, including mining, medical device, and high-tech companies. He has played an integral role in the establishment, acquisition, and financing for these companies.
S. R. Hwang – Director, Chief Operating Officer and SVP
S. R. Hwang has over 30 years of experience working for Samsung SDI (sixth largest global battery manufacturer), serving as the executive director, chief of purchasing and advisor until 2018. His responsibilities included managing the supply chain, procurement planning and advanced business development. During his time with Samsung SDI, Hwang accumulated a vast network and information pipeline within the lithium-ion battery industry. He has a deep understanding of business development and trade capabilities, as well as specialized knowledge in raw materials, such as cobalt, nickel, and aluminum.
Dr. S. G. Kim – Chief Technology Officer
Dr. S. G. Kim served as the executive vice-president and head of R&D of Hanwha Solutions’ Advanced Materials Division, a multibillion-dollar South Korean conglomerate. Kim led Hanwha Solutions to nearly double new product sales and expand the core technology portfolio by leading several value-added projects for global automotive, aerospace and electronics companies. Prior to joining Hanwha Solutions, Kim held tenure as the global R&D leader at Momentive Performance Materials, the second-largest global manufacturer of silicon-based products. Kim received his Ph.D. in chemical engineering and applied chemistry from the University of Toronto, Canada. He has published high-impact journals in the field of polymers and nanocomposites, and retains 15 patents related to polymers, coatings and silicon-based materials.
Dr. J. H. Woo – Chief Science Officer
Dr. J. H. Woo has worked as a scientific research engineer at General Motors Global R&D Centre, researching nanostructured silicon anode materials with artificial solid electrolyte interphase (SEI), lithium-ion battery performance optimization, and electrode material synthesis. His research expertise focuses on the synthesis of silicon anode materials for high-energy batteries in long-range EVs and on interfacial engineering for sulfide-based all-solid-state batteries (ASSB). Receiving his Ph.D. in mechanical engineering at the University of Colorado Boulder, Woo has published influential literature in international journals, such as in Advanced Materials, that advanced the field of silicon anodes and ASSBs. His high-impact research has led to a major battery materials NASDAQ-listed company licensing Woo’s patent related to ASSBs.
Dr. D. M. Whang – Lead Scientific Advisor
Dr. D. M. Whang’s research expertise lies in the field of fabrication and manufacturing of low-dimensional nanomaterials, especially graphene, semiconductor nanowires, and porous nanostructures for applications in EV lithium-ion batteries, fuel cells and various energy storage applications. Whang owns more than 50 patents of which two-thirds are co-owned with Samsung Electronics, and he has also co-authored more than 177 peer-reviewed publications with over 13,850 citations. Whang is a professor at the School of Advanced Materials Science & Engineering and Advanced Institute of Nanotechnology at Sungkyunkwan University (SKKU). He received his Ph.D. in chemistry from Pohang University of Science and Technology (POSTECH) in 1997, and prior to joining SKKU, he was a senior research fellow at Harvard University.
This article was written in collaboration with Couloir Capital Ltd.
Central Perth Location for WA’s First Public Green Hydrogen Refuelling Station
HIGHLIGHTS
- Frontier Energy and City of Perth to develop WA’s first publicly available green hydrogen refuelling station in West Perth
- Proposed location of refuelling station is approximately 2km from Central Perth
- WA Government has identified domestically produced green hydrogen as a key to reducing WA’s reliance on diesel imports
- There is vast potential for reducing WA’s emissions by replacing diesel and petrol with green hydrogen in transport and bulk haulage
Frontier and the City of Perth have identified and selected a convenient and accessible location for this refuelling station on City of Perth-owned land at Thomas St, West Perth. This location is approximately 2km from Central Perth, near the Mitchell and Kwinana Freeway access points. Hydrogen powered vehicles have faster refuelling times and the ability to travel longer distances carrying larger loads before refuelling.
Development of this refuelling station is subject to final approvals, as well as a Final Investment Decision by Frontier.
Image 1 – Map of Refuelling Station location and surrounding infrastructure
Perth City Lord Mayor Basil Zempilas commented : “Hydrogen-fuelled cars are predicted to grow in popularity over the coming years so having a city-based refuelling station forms an important part of our sustainability plan.
“Frontier Energy is working to become one of the first companies in Australia to produce green hydrogen commercially and will be an important partner for the City as we strive to create a healthy city where environmental, social and economic systems are in balance.”
Frontier Managing Director, Sam Lee Mohan, commented : “The displacement of diesel by hydrogen, most notably in the long haulage industry, is likely to be a major market for hydrogen in the future. Critical to the development of this industry is not only the development of the green hydrogen product, but also the development of critical associated infrastructure such as refuelling stations.
“This initiative aligns with Frontier’s long-term ambition to become a vertically integrated producer across the renewable energy sector, including green hydrogen. The Company would like to thank the City of Perth for its work in arriving at this point and we look forward to developing this exciting project together.”
Using green hydrogen to replace diesel and petrol
Hydrogen can be used as fuel to power Fuel Cell Electric Vehicles (FCEV) including cars, buses, trucks, and trains. Refuelling hydrogen cars, buses and trucks requires a network of refuelling stations, similar to the existing petrol station network.
Benefits:
FCEVs are more efficient than conventional internal combustion engine vehicles and produce no harmful tailpipe emissions. The advantages of hydrogen powered vehicles compared to battery electric vehicles include faster refuelling times and the ability to travel longer distances carrying larger loads before refuelling.
This is perhaps most apparent in long-haul road transportation, which is hugely important to WA’s economy, where the combination of battery weight, extended recharging times and limited range are impediments for purely electric solutions. On each of these factors, FCEVs offer an attractive alternative.
When energy contained in fuel and engine efficiencies are accounted for, hydrogen in a FCEV drive is approximately equivalent to 4 - 6 times diesel on a $/kg basis. This implies that a $8-12/kg hydrogen price is equivalent to a ~$2/kg diesel price (in line with current prices), as measured by equivalent output in a diesel car or a FCEV. Additional premium for zero emissions is likely to accrue to hydrogen used in transport.
Refuelling station technology and FCEV technology is maturing, with stations and fleets being rolled out globally.
WA Opportunity:
Currently, there are no publicly accessible refuelling stations in WA and only a very small FCEV fleet.
Click here for the full ASX Release
This article includes content from Frontier Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here .
WA’s Electricity Grid Constraints Highlight Strategic Advantage of the Bristol Spring Project
The Report focused on evaluating potential capacity for large scale connections at existing substations and terminals across the 330kV and 220kV transmission network, from now until 2032.
This Report was commissioned by the Company to gain a better understanding of new large- scale developments on the SWIS, similar to the potential of the Bristol Spring Renewable Energy Project (the Project) in the short to medium term.
The development of multiple, large scale energy projects on the SWIS would affect wholesale electricity prices (if supply outstripped demand) and therefore potential returns on Frontier’s Stage One Project development that is planned to commence in 2024.
The Report however concluded that “there are no other opportunities that exist on the SWIS for the development of a connected generator of the scale of the Bristol Spring Renewable Energy Project in the short or medium term” . The reasons for this include:
- The North Region is limited due to the existing thermal constraints on the 330kV and 132kV transmission networks in this region (see map below for region locations);
- The East Region does not present any opportunities for large scale network connected generation in the near term due to limitations of the 220kV transmission. Limitations on transfer capacity from Merredin west limit new generation in the middle area of the East Region, with new wind developments at Kondinin absorbing transmission capacity between Merredin and Collie;
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The South Region Terminals present immediate and near term opportunities
for large scale network connection.
However, within the 330kV network both Oakley and Kemerton are dependent upon existing industrial loads, with Kemerton already at its upper limits due to industrial loads within the Kemerton industrial area.
The Collie region, including the Muja and Bluewaters substations, have substation connection and transfer capacity within the 330kV network, and will present opportunities following the closure of the coal-fired power stations (planned for 2029). However, the region is surrounded by State forests, limiting land availability, with the majority of cleared land currently mined for coal and requiring rehabilitation post 2030; and - Until 2030, only Landwehr Terminal (where the Project is located) can readily accommodate new large scale renewable connections of 250MW or greater . It is expected that a number of Behind the Meter connections will be developed by industry whilst smaller scale renewable and large scale battery storage are expected to be developed in conjunction with existing generators at selected substations and terminals.
Figure 1: SWIS 330kV – 220kV network and Regions
The Report supports the Australian Energy Market Operator annual Wholesale Electricity Market Electricity Statement of Opportunities (ESOO Report), which stated “the urgency of advancing generation, storage, demand side management and transmission projects to bolster reliability and support a rapid and orderly energy transition. Its findings emphasise the need for additional capacity procurement and expedited progress of capacity projects in the SWIS.” The ESOO Report also highlighted demand is forecast to increase significantly over the next decade to at least 78% (Expected Case), with an Upside Case increasing by more than 220%.
A copy of the ESOO "Report is attached to this announcement.
Frontier Managing Director, Sam Lee Mohan, commented : “While we always believed the Bristol Springs Renewable Energy Project was the best undeveloped renewable energy project in WA, we did not appreciate that it is the only project of its size that can access the SWIS network in the short to medium term. This again highlights what a unique opportunity the Company has with the Project, as well as the growing importance of the Project to the State, at a time when energy prices are continuing to rise and energy security is becoming more important than ever.
The next few months are shaping up as the most significant in the Company’s history with multiple major events on the horizon. First, we expect to complete the acquisition of Waroona Energy Inc. in December 2023. This transaction will then be followed by a DFS for Waroona’s Stage One Solar development (120MW) as well as the Peaking Plant Study expected to be released in 1Q24.”
This article includes content from Frontier Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here .
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