Frontier Energy

Quarterly Activity Report Quarter Ending 31 March 2024

Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to provide its quarterly activity report for the quarter ending 31 March 2024. The Company’s Waroona Renewable Energy Project (Project) is located in the South West region of Western Australia, approximately 120km from Perth and 8km from the town of Waroona.

HIGHLIGHTS

  • Frontier released its Definitive Feasibility Study (DFS) for a 120MWdc Solar Facility with integrated 80MW 4-hour battery (Stage One). DFS Highlights included:
    • Stage One generates average EBITDA1 of $68 million pa over first five years of production and $63m pa over first 10 years of production
    • Post-tax payback1 of 5.8 years (4.6 years pre-tax) based on $304m total initial capital cost
    • Leveraged2 post-tax Internal Rate of Return (IRR) is 21.6%1 and pre-tax IRR is 27.3%1.
  • Procurement and EPC contracts nearing conclusion with all equipment selection being with tier one providers
    • Tender process resulted in cost estimates for all major long lead items in line with or lower than DFS estimates
    • Final equipment selection and contract negotiations on track for conclusion in Q2
  • Phase One of the debt process confirmed strong interest from banks to provide debt funding solutions in line with the terms outlined in the DFS, including approval of debt carrying capacity of 70% which equates to $225 million
  • A select number of leading Australian and international banks have been shortlisted (Phase 2) as part of the debt financing process
    • The Company anticipates credit approved terms to be provided during the next 8 to 12 weeks, assuming successful completion of due diligence
  • The strategic equity investor process is ongoing, with NDAs in place with a number of Australian and international groups
  • WA peak electricity operational demand reached a new record of 4.23GW in February 2024, and exceeded the record peak six times during the March quarter
    • A significant rise in peak prices (4pm – 9pm) occurred during the March quarter, increasing by 65% to $172/MWh compared to the previous yea
    • The average energy price in 1Q24 was $78.5/MWh, 6% higher than 1Q23 ($74.2/MWh)
    • On 14 occasions during the quarter, the Australian Energy Market Operator paid for demand reduction to ensure stability and reliability of the system
  • As at 31 March 2024, Frontier had cash of $10.3m (unaudited)

Stage One DFS confirms strong financial returns

The Company’s Stage One DFS highlights Frontier's unique opportunity to be a near-term major renewable energy producer in Western Australia, at a time when energy demand continues to outpace supply in WA, resulting in electricity prices reaching record highs. The key project assumptions determined by the DFS are highlighted in Table 1 below.

The DFS forecasts annual renewable electricity generation of approximately 258GWh (year one). Of this, 120GWh is stored in integrated DC coupled batteries and sold in the Wholesale Electricity Market (WEM) at peak demand times, with a charging and discharging efficiency loss of 15% or 18GWh.


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.

FHE:AU
The Conversation (0)
CoTec Holdings (TSXV:CTH)

CoTec Holdings

Keep reading...Show less
Green globe with digital charts and glowing data lines, symbolizing global analytics.

Cleantech Market Update: Q1 2025 in Review

Shifting political winds and tech advancements defined the cleantech sector in the first quarter of 2025.

This cleantech market update will explore the key trends and challenges that shaped the sector in Q1, with a focus on electric vehicles (EVs), autonomous driving technologies and renewable energy.

From shifting regulatory landscapes to breakthroughs in battery innovation, the period was marked by rapid developments and growing global investment in clean technologies.

Keep reading...Show less
Provaris

Provaris Energy’s Capital-light Shift Unlocks Growth in Hydrogen and CO₂ Transport, Report Says

Description

A recent analyst report from Longspur Clean Energy highlights Provaris Energy’s (ASX:PV1) progress in establishing a hydrogen and CO2 transport solution, alongside a strategic shift to a capital-light business model.

Keep reading...Show less
Provaris Energy

Provaris Energy


Keep reading...Show less
Solar panels and wind turbines under a bright sky at sunset.

AngloGold Completes Tropicana Renewables Project

AngloGold Ashanti (NYSE:AU,JSE:ANG)said on Monday (March 31) that with the completion of its Tropicana renewables project it has created the largest hybrid power system in Australia’s mining sector.

First introduced by AngloGold in June 2023, the renewables project is a partnership with Pacific Energy (ASX:PEA), which will integrate 61 megawatts of wind and solar generation capacity at the Tropicana development.

Tropicana is located in Western Australia roughly 1,000 kilometres east of Perth and is a joint venture between AngloGold and fellow gold producer Regis Resources (ASX:RRL,OTC Pink:RGRNF).

Keep reading...Show less

Latest Press Releases

Related News

×