The Conversation (0)
Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) advises that Waroona Energy Inc. (TSXV: WHE) (Waroona) has commenced a Definitive Feasibility Study (DFS) for a 120MWdc solar power generation facility.
Frontier has recently announced the signing of a Letter of Intent with Waroona to acquire all the Waroona shares (the Transaction) not currently held by Frontier (Frontier already holds ~20% of Waroona) via a Canadian Plan of Arrangement (Share Plan), equivalent to an Australian Scheme of Arrangement. Frontier and Waroona have in place a collaboration agreement regarding their respective strategies for renewable energy production in Western Australia.
HIGHLIGHTS
- Waroona has engaged electricity and solar energy specialist Incite Energy to complete a DFS for a 120MWdc Solar Facility (“Stage One”)
- While Frontier has already completed a DFS for a 114MW solar farm, Waroona’s ground is located closer to the nearby electricity terminal and Waroona had not previously completed a DFS
- The Waroona DFS will finalise the detailed design including site layout, equipment specification and capital cost estimate (accurate to ±15%) for Stage One development
- Leveraging the significant work already completed, the DFS will be completed in early 2024
- The Project has all major permits, approvals and an executed Electricity Transfer Access Contract and Interconnection Works Contract to WA’s electricity network (SWIS) in place
- Waroona’s Study of a green hydrogen-fuelled (dual fuel) peaking power plant is also progressing and remains on track for delivery during 4Q23
- Electricity prices continue to trend higher, averaging A$90/MWh during the September quarter, a 25% YoY increase
- Prices during the afternoon peak interval averaged over A$150/MWh, while midday low prices averaged around $50/MWh
Frontier Managing Director, Sam Lee Mohan, commented: “The development of a solar facility is a key pillar of the Company’s long-term strategy to build a renewable energy hub. This strategy includes solar production, green hydrogen production from solar energy, as well as green hydrogen consumption in a hydrogen-fuelled peaking power plant.
Given our existing collaboration agreement with Waroona, and the recently announced transaction that will combine the two companies, it makes logical sense to prepare for construction of the Stage One solar facility on a site that is located nearest the electricity terminal. As significant work has been completed on solar power generation already (including in Frontier’s DFS), Waroona’s solar DFS can be fast tracked and completed by early 2024.
The Company remains on track to meet its target to commence solar development during 1H2024.”
Waroona DFS for 120MWdc solar farm underway
Waroona has appointed electricity and solar energy specialist Incite Energy Pty Ltd (Incite) to complete a DFS for a 120MWdc Solar Facility (“Stage One”) at the Waroona Renewable Energy Project. The Company has an approved Declared Sent Out Capacity (DSOC) of 241MWdc from Western Power, of which Stage One will be targeting to deploy 120MWdc.
While Frontier had previously completed a DFS for a 114MWdc solar farm at the Bristol Springs Project (located on the purple shaded area in Figure 1 below), the Waroona Project is located closest to the electricity terminal (only 300m away – as shown in Figure 1 - teal shaded area) and is the most cost-effective location for Stage One of a combined development. Waroona had not previously completed a DFS.
Figure 1: Frontier and Waroona’s projects and nearby infrastructure in South-West WA
Incite was selected through a competitive tender process due to its expertise in the industry and its exceptional track record, including several operational utility-scale projects across Australia (ranging from 50MW - 300MW) and multiple utility-scale solar farms and load connections currently in early-stage development in Western Australia.
The Scope of work for the DFS includes:
1. Layout – considering clearing limitations, flood studies, road servitudes, drainage channel, and allocating areas for future Peaker Plant and hydrogen plant
2. Design
3. Equipment specification and supplier quotations
4. Update and refinement of geotechnical information
5. Construction and commissioning scope and costing
6. Interfacing with Western Power
Figure 2: Artist impression of the Solar facility and peaking plant on Waroona’s landholding
A DFS was preferred to appointing an EPC contractor to carry out an early works program as had been contemplated previously1. This decision was made as it more cost effective, both in the short and long term.
This approach allows the Company to consider a more flexible approach through the construction phase, as it allows for the Company to manage procurement of key equipment, including critical path long lead items, in-house. This would likely reduce the overall capital requirement whilst having no material impact on timing to Final investment Decision (FID). The Stage One DFS will be delivered in early 2024.
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
Heritage Clearances Received for Priority Drill Targets at Abbotts North
HIGHLIGHTS
- Heritage clearances have been received for areas covering priority lithium pegmatite targets at the Abbotts North Project.
- Main Buttamiah Prospect now accessible for the February RC program
- Track and drill pad establishment has commenced and RC drilling rig is mobilising to site.
Richard Taylor, CEO of Premier1, said:
“With the receipt of the heritage survey report and the recent approval of the Programme of Work applications by the Department of Mines, Industry Regulation and Safety, we now have in place all the environmental and heritage approvals required for the first drilling program at Abbotts North. I thank the traditional owners of Abbotts North, the Ngoonooru Wajarri, for their advice and involvement in the process.
With site mobilisation having commenced and the RC rig already on its way, this is an important and exciting phase for Premier1.”
Priority Targets
The survey area covers the main Buttamiah Prospect where several parallel lithium bearing pegmatites have been mapped and sampled. The pegmatites strike approximately east west and single pegmatites can be traced in strike over an extended area. The RC program has been designed to test the depth and extent of the mineralised pegmatite field.
There remain further priority targets at the Abbotts North Project based on the latest completion of the first phase of field mapping, rock chip sampling and soil geochemistry in December 2023. The results from the soil survey highlighted areas of interest with anomalous responses comparable to the geochemical signature over the main Buttamiah Prospect (ASX 22 January 2024). Further follow up fieldwork will be conducted to assess these new priority targets and plan for further heritage clearance surveys.
Heritage Survey
The first heritage clearance survey at Abbotts North was completed by Archaeological Excavations Pty Ltd in conjunction with the Ngoonooru Wajarri people, who are the traditional owners of the lands and waters. The survey was conducted over several days, with participants from Archaelogical Excavations, the traditional owners and Premier1.
Figure 1: Abbotts North Survey Area.
Programme of Work (“PoW”) approvals have been received from the Department of Mines, Industry Regulations and Safety (“DMIRS”) for 4.92ha of land within Exploration Licence E51/2126 (Table 1).
Premier1 Lithium now has in place sufficient PoW and heritage clearances to conduct RC drilling over the main target areas at the Abbotts North Project. The first drilling program is planned for approximately 2,000m. The focus is to define the continuity and extent of lithium mineralisation evident in rock chip samples taken from surface within the main Buttamiah Prospect.
Click here for the full ASX Release
This article includes content from SensOre, 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.