Major Milestone As Water Access Confirmed For Green Hydrogen Production

Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to announce the Company, in consultation with Water Corporation, has agreed on the preferred pathway to deliver water to the Bristol Springs Renewable Energy Project (the “Project”) to enable green hydrogen production. The preferred pathway is through the existing Stirling Trunk Main pipeline (scheme water).

Accessing an existing water solution is a major milestone for the Company as we progress our green hydrogen strategy. The Company expects to finalise the terms and conditions with Water Corporation in the coming months.

Water is an essential element for green hydrogen production with around nine litres of water required for every one kilogram of hydrogen produced. Without access to suitable water, a desalination facility would be required, which would add significant capital, additional environmental studies and regulatory approvals.

HIGHLIGHTS

• The Company in consultation with Water Corporation has agreed on the preferred option to access water, which is through the existing Stirling Trunk Main pipeline (scheme water). This pipeline is 3.5km from the Project
  
  • Water Corporation is the principal supplier of water, wastewater and drainage services throughout Western Australia, and is owned by the Western Australian government
    
• The proposed capacity is 1,250 Kl/day. This is sufficient for an 150MW electrolyser, some four times the size proposed in Stage One (36.6MW) to ensure expansion potential in the mid-term
• Both the consumption cost (operating costs) and initial capital cost are in line with the Pre-Feasibility Study¹ costs associated with water
  • The total unit cost² (inclusive of capital) for hydrogen production was forecast at $2.83 per kg of hydrogen produced

Executive Chairman Grant Davey commented:“The location of our Bristol Springs Renewable Energy Project has again given the Company a significant advantage compared to our peers in more remote locations.

Accessing suitable water, one of the two critical elements for green hydrogen production (the other being renewable energy), via the existing water pipeline network means the Company does not require the development of a desalination facility. This not only saves the Projectmillionsincapitaldevelopmentcosts,butalsoreducesthetimetofirstproductionasadditional approvals and environmental studies are not required.”

Agreement with Water Corporation for water access

The Project is located in the South West region of Western Australia and is approximately 120km from Perth and 8km from the town of Waroona. The Company’s Stage One strategy is to develop a 114MW solar farm to power a 36.6MW alkaline electrolyser. This will produce approximately 4.4 million kilograms of green hydrogen per annum. The Company’s long- term target is to generate renewable energy in excess of 1GW.

Water is one of two key elements required to produce green hydrogen, with the other being renewable energy (solar energy). Given the Project’s location, the Company had four options to source water, with three from existing networks/solutions. These included:

• Accessing scheme water via the Stirling Trunk Main pipeline
• Yarragadee freshwater aquifer – one of the largest aquifers in Australia
• Bunbury Wastewater Treatment Plant, and
• Developing a stand-alone desalination facility.

The Yarragadee freshwater aquifer and Bunbury Wastewater Treatment Plant are feasible options and superior to the alternative of developing a stand-alone desalination facility (the only option available to remotely located hydrogen projects). However, accessing the existing pipeline was the clear standout given its minimal cost (capital and operating), simplicity and timing as well as environmental and regulatory considerations.

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