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Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) engaged independent specialist energy and resources consultancy ResourcesWA, to undertake an assessment (the Report) of Western Australia’s major electricity network, the South West Interconnected System (SWIS).
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;
- 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.
FHE:AU
Energy Technologies: High-quality Cable Manufacturer and Re-seller for the Expanding Energy Market
With a strong foothold in the manufacturing and distribution of copper-insulated cables, Australia-based Energy Technologies (ASX:EGY) is poised to capitalize on the growing renewable energy sector through strategic global partnerships presenting a compelling investment opportunity. The company''s wholly owned subsidiary, Bambach Wires and Cables, is the oldest cable manufacturer in Australia, and its extensive history underpins a reputation for reliability and quality.
Energy Technologies focuses its factory operations on higher-margin product lines while employing a balanced strategy of manufacturing and purchasing cables for sale. Its Rosedale facility is a significant upgrade in its manufacturing capabilities equipped with a high level of automation that supports production efficiency, processing up to 250 tonnes of copper monthly, with room for additional capacity if demand rises.
Energy Technologies also engages in purchased sales by sourcing lower-margin products from rigorously vetted suppliers throughout the globe. This approach ensures Energy Technologies can meet market demand without overextending its manufacturing resources. Purchased sales for FY25 are projected to contribute an additional AU$6.7 million to the company’s revenue.
Company Highlights
- Energy Technologies produces low-, medium-, and high-voltage cables, with over 90 percent of its materials sourced locally in Australia.
- The company is strategically aligned with electrification and renewable energy trends, catering to infrastructure, solar, wind and mining industries.
- Key partnerships with Gantner Instruments and Tratos Group expand its product offerings for solar farms, wind turbines and subsea transmission lines.
- The company’s partnerships position it as a comprehensive supplier for large-scale renewable energy projects, projected to grow to AU$6 billion annually by 2034.
This Energy Technologies profile is part of a paid investor education campaign.*
Click here to connect with Energy Technologies (ASX:EGY) to receive an Investor Presentation
Energy Technologies
Investor Insight
Leveraging its long-history and reputation as a cable manufacturer, Energy Technologies’ (EGY) push to capitalize on the growing renewable energy sector through strategic global partnerships present a compelling investment opportunity.
Overview
Australia-based Energy Technologies (ASX:EGY) has a strong foothold in the manufacture and distribution of copper-insulated cables through its wholly owned subsidiary, Bambach Wires and Cables. Since its acquisition by Energy Technologies, the company has served as a cornerstone of the company’s operations. Founded in 1936, the company is the oldest cable manufacturer in Australia, and its extensive history underpins a reputation for reliability and quality. With a manufacturing facility in Rosedale, Victoria, and sales offices in New South Wales, Western Australia, and Victoria, the company provides comprehensive solutions tailored to the needs of critical sectors including infrastructure, renewable energy, defense and mining. Energy Technologies’ commitment to supporting Australian industry is reflected in its products. Over 90 percent of raw materials used for its cable products, like copper and plastic, are locally sourced.
Energy Technologies employs a balanced strategy of manufacturing and purchasing cables for sale. The company focuses its factory operations on higher-margin product lines, while lower-margin cables are sourced from strategic manufacturers located around the globe, coupled with a wholesale distribution department, which capitalises on complimentary products & services in strategic market segments. This approach enhances cash flow management and operational efficiency.
The company’s Rosedale facility is a significant upgrade in its manufacturing capabilities. Situated on 122 acres, this location provides ample space for future expansion. The plant’s high level of automation supports production efficiency, processing up to 250 tonnes of copper monthly, with room for additional capacity if demand rises.
Strategic Review of Business Operations
Energy Technologies has focused on building strong partnerships to expand its product range and market reach. A key strategy for growth is to develop alliances with larger entities to enable Bambach to scale its distribution and provide specialized products to niche markets.
One such alliance is with Gantner Instruments, a full-service photovoltaic (PV) monitoring and control supplier for utility scale PV power plants. Under the distribution agreement with Gantner, Bambach supplies the renewable energy sector with certified, specialized low-voltage cables, connectors, weather stations and DC combiner boxes. These products are essential for delivering power from solar panels to inverters, which is a critical component in renewable energy infrastructure.
According to projections, the annual spending on utility-scale solar farms in Australia will reach AU$6 billion over the next decade. This growth is segmented into three phases:
- Initial surge (2024 to 2026): AU$2.5 billion to $3.5 billion annually.
- Accelerated growth (2027 to 2029): AU$3.5 billion to $5 billion annually.
- Mature market phase (2030-2034): AU$4.5 billion to $6 billion annually.
Another critical partnership for Energy Technologies is with Tratos Group, a leading Italian cable manufacturer. This agreement has significantly expanded Energy Technologies’ product portfolio, allowing the company to offer medium- and high-voltage cables, as well as solutions for subsea transmission lines, offshore and onshore wind turbines, and mining operations. These additions bolster the company’s ability to address the growing demand in the renewable energy and mining sectors, while also diversifying its market reach.
Manufacturing and Purchased Sales Strategy
Energy Technologies employs a dual approach to sales through a combination of manufactured and purchased products. Its factory in Rosedale focuses on high-margin, specialized cable products that cater to sectors such as renewable energy, rail road, and infrastructure.
For FY25, the company is forecasting manufactured gross margins exceeding 23 percent. To complement its manufacturing capabilities, the company also engages in purchased sales by sourcing lower-margin products from rigorously vetted suppliers throughout the globe. This approach ensures Energy Technologies can meet market demand without overextending its manufacturing resources. Purchased sales for FY25 are projected to contribute an additional AU$6.7 million to the company’s revenue.
Company Highlights
- Energy Technologies produces low-, medium-, and high-voltage cables, with over 90 percent of its materials sourced locally in Australia.
- The company is strategically aligned with electrification and renewable energy trends, catering to infrastructure, solar, wind and mining industries.
- Key partnerships with Gantner Instruments and Tratos Group expand its product offerings for solar farms, wind turbines and subsea transmission lines.
- The company’s partnerships position it as a comprehensive supplier for large-scale renewable energy projects, projected to grow to AU$6 billion annually by 2034.
Provaris Energy: Enabling Clean Energy Supply Chains via Innovative Hydrogen, CO2 Storage and Transport Solutions
Provaris (ASX:PV1), a leading innovator in the green hydrogen sector is well-positioned to be an important part of the European green hydrogen supply chain through its groundbreaking compressed hydrogen solutions. The company's proprietary tank IP and innovative ship design support its vision to develop a portfolio of integrated green hydrogen projects.
Provaris’ innovative H2Neo carrier solution offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for clean energy while overcoming the logistical challenges associated with green hydrogen distribution.
Provaris is expanding its portfolio to include CO2 storage technologies, a move that aligns with the company's core competencies in gas handling and storage, while addressing the growing demand for large scale CO2 storage and transport solutions in the European market, and beyond.
Company Highlights
- Provaris is a leading innovator in the green hydrogen sector, leveraging its proprietary compressed hydrogen technology to develop sustainable, clean energy supply chains across Europe.
- The company combines proven technology and unique IP for cost-effective hydrogen storage and transport solutions, with a first-mover advantage through its proprietary ship design and low-cost delivery.
- Provaris has established strong strategic partners across Europe, enhancing its credibility in delivering hydrogen to market
- In addition to green hydrogen, the company is leveraging its tank IP for application into the established CO2 storage and shipping market.
This Provaris Energy profile is part of a paid investor education campaign.*
Click here to connect with Provaris Energy (ASX:PV1) to receive an Investor Presentation