Frontier Energy

Highly Experienced Renewable Energy Debt Advisor Appointed

Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to advise of its appointment of Leeuwin Capital Partners (Leeuwin) as debt advisor for the Stage One development of the Waroona Renewable Energy Project (Project). Stage One will comprise a 120MWdc solar facility with an integrated four-hour 80MW battery.


HIGHLIGHTS

  • Frontier selected Leeuwin on the strength of its demonstrated track record, knowledge and experience within the Western Australian energy sector, including renewable energy projects which have incorporated solar and battery storage infrastructure
    • WA is a different environment for developing renewable energy projects than the National Electricity Market (NEM) electricity grid on Australia’s east coast
    • A notable difference is Reserve Capacity Payments (RCP) that are only available in WA
  • RCP for an 80MW 4-hour battery is forecast to generate ~$24 million in revenue in 2026/271
    • RCP can be locked in for at least five years, creating a secure revenue stream that should be highly attractive to debt financiers
  • The Definitive Feasibility Study (DFS) remains on track for release in February 2024
  • Wholesale Electricity Market prices in January again showed an increasing trend
    • The average for January of $78/MWh was a 16% year-on-year increase over $68/MWh recorded in January 2023

CEO Adam Kiley commented:“The appointment of a debt adviser is a key milestone in advancing our Stage One development towards FID. The Company believes that Leeuwin brings a high level of expertise and deal experience, and we look forward to working with them.

Now that the State Government has determined a battery to be the reference technology for benchmark reserve capacity payments, an integrated solar and battery development will attract significant Reserve Capacity Payments. These can be locked in for a minimum of five years, providing significant scope for debt financing of Stage One. The Company is continuing to progress the DFS for Stage One, with results to be announced later in February, in preparation for FID in 1H24”

Highly experienced debt advisor appointed

Frontier selected Leeuwin following a competitive process, given Leeuwin’s exceptional strength and expertise in delivering optimal debt funding solutions for their clients having executed transactions throughout Australia and internationally. Importantly Leeuwin has a demonstrated track record, knowledge and experience within the Western Australian energy sector including renewable energy projects which have incorporated solar and battery storage infrastructure.

The Company considers Leeuwin’s WA renewable energy project experience of critical importance, as WA is a different environment for developing renewable energy projects compared to the National Electricity Market (NEM) electricity grid on the east coast of Australia. A notable difference is Reserve Capacity Payments (RCP) that are only available in WA.

RCP for an 80MW 4-hour battery is forecast to generate ~$24 million in revenue in 2026/27 (excludes solar RCPs). RCP can also be locked in for at least five years, creating a secure revenue stream that should be highly attractive to debt financiers.

DFS on track for February delivery

The Definitive Feasibility Study (DFS) remains on track for release in February 2024.

In addition to the appointment of Leeuwin, the Company has shortlisted Independent Technical Experts, tax advisers and legal advisers, which are all critical to ensure timely delivery of binding debt terms to ensure the Company remains on track to achieve its target of a Final Investment Decision by mid 2024.

Wholesale Electricity Prices increased further

Wholesale Electricity Market prices in January again showed an increasing trend. The average for January of $78/MWh was a 16% year-on-year increase over $68/MWh recorded in January 2023, and a 6% month-on-month increase over $74/MWh recorded in December 20232.


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)
Westport Announces Director Retirement

Westport Announces Director Retirement

Westport Fuel Systems Inc. ("Westport") (TSX:WPRT Nasdaq:WPRT), announces that Brenda Eprile has retired from Westport's Board of Directors (the "Board"), effective January 6, 2025. The Board is currently evaluating alternatives with respect to the appointment of an independent director to fill the vacancy.

"On behalf of the entire Board of Directors, I would like to express our deepest gratitude to Brenda for her exceptional leadership and unwavering dedication throughout her 11 year tenure," said Dan Hancock, Westport Fuel Systems Board Chair. "Brenda has been an invaluable part of our team, and we wish her well in her next chapter."

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Electric vehicle charging.

South Africa Courts EV Makers, China Proposes EV Tech Controls

South Africa's introduction of a tax incentive aimed at attracting electric vehicle (EV) and hydrogen-powered vehicle production has positioned the country as a potential hub for Chinese automakers.

President Cyril Ramaphosa signed the tax amendment into law on December 24, allowing a 150 percent tax deduction on investment in new-energy vehicle production.

The legislation is seen as a response to ongoing shifts in global automotive markets, particularly the European Union’s drive to phase out internal combustion engines.

Keep reading...Show less
Provaris Energy

Term Sheet for Hydrogen Supply and Offtake with Uniper

Provaris Energy Ltd (Provaris; ASX:PV1) is pleased to advise the collaboration with Uniper Global Commodities SE (Uniper) and Norwegian Hydrogen AS has advanced to the execution of a conditional Term Sheet for the supply, transport and offtake of RFNBO compliant hydrogen. The Term Sheet provides the basis of negotiating a binding Hydrogen Sale and Purchase Agreement (Hydrogen SPA) which is targeted for June 2025.

Keep reading...Show less
Field with windmills overlayed by Canadian flag.

5 Best-performing Canadian Cleantech Stocks of 2024

The global transition to a green economy has been a boon for the cleantech market — it's helping investment in renewable energy and clean technology continue to grow, allowing the sector to keep building momentum.

Analysts see a few key trends dominating the cleantech sector worldwide, including solar and wind energy, agricultural technology, electric vehicles (EVs), EV infrastructure and clean energy commercial long-haul transportation solutions.

Heading into 2025, here’s a look at the best-performing Canadian cleantech stocks on the TSX and TSXV year-to-date; CSE companies were considered, but none made the list at this time.

Keep reading...Show less
Green globe among leaves.

Cleantech Market Forecast: Top Trends for Cleantech in 2025

The escalating energy demands of today's increasingly digital world are pushing the limits of the power grid in the US and elsewhere, necessitating a faster shift toward sustainable energy solutions.

What does the future hold for the cleantech industry as it leads the charge in addressing these issues in 2025?

Here the Investing News Network explores the implications of rising energy consumption, the role of cleantech innovation in meeting this demand and how government policies could help or hinder the sector.

Keep reading...Show less

Latest Press Releases

Related News

×