Frontier and Waroona combine to create giant renewable energy company

• Frontier Energy completes acquisition of Waroona Energy
• Merger means FHE will have generation capacity of >1GW renewable energy
• DFS for 120MWdc solar development nearing completion
• Stage One progressing towards FID in first half of 2024

Special Report: Frontier Energy has successfully acquired Waroona Energy to create Western Australia’s largest renewable energy development company. 

Back in October, the company announced its plans to acquire Waroona, which has a namesake project adjacent to its Bristol Springs renewable energy project in WA.

The merger means the company would have a generation capacity of more than 1GW – which according to the US Energy Dept – is equivalent to 2.469 million photovoltaic (PV) panels, 310 utility-scale wind turbines, and 100 million LED bulbs.

It’s also just shy of the power required to send Doc Emmett Brown’s DeLorean through time in Back to the Future (1.21GW).

The projects share the benefits of nearby infrastructure – including secured connections to the South West Interconnected System – for green hydrogen production and supply.

Combined, Frontier Energy’s (ASX:FHE) 114MW Stage One solar generation capacity and Waroona’s 241MW solar capacity provides a potential of 355MW of renewable solar power generation, with development approvals already in place.

Final investment decision pending

Previously, FHE held 20% of Waroona’s shares, and now, via a Canadian Plan of Arrangement (equivalent to an Australian Scheme of Arrangement) the company has successfully acquired all Waroona’s outstanding shares.

FHE now controls two grid connections, which will be capable of exporting >1GW renewable energy to the grid, and freehold landholding of 868ha ideal for solar, hydrogen and other renewable energy opportunities.

The DFS for the Stage One 120MWdc solar development is now nearing completion, with the company eyeing a final investment decision (FID) in H1 2024.

“Combining Frontier and Waroona provides the opportunity to develop one of WA’s largest solar projects in the fastest and most capital efficient manner, while also creating the critical mass required to secure financing,” FHE MD Sam Lee Mohan said.

“With the transaction complete, we are fully focused on moving stage one towards a final investment decision in 1H24.

“There will be strong news flow over coming months, including the finalisation of studies and financing activities.”

Integrated renewable hub the goal

The company continues to assess multiple value-added initiatives that potentially uplift solar energy valuations, including a green hydrogen-fuelled peaking power plant study due for delivery in Q1 24.

The WA Government has also commenced reviewing the reference technology for reserve capacity, with early indications that it may change from a heavy-duty open cycle turbine (peaking plants) to batteries.

FHE’s ultimate aim is to create the state’s largest vertically integrated renewable energy hub at Bristol Springs.

“The company has been assessing a number of strategies that have the potential to add significant value to Stage One development plans, and we continue to assess long-term growth opportunities to make the project one of WA’s largest diversified renewable energy hubs,” Lee Mohan said.

“I thank shareholders for their continued support through 2023 as we look forward to 2024, where we expect development of the project to be in full swing by this time next year.”

This article was developed in collaboration with Frontier Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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