Frontier Energy Ltd Begins Commercial Operations as Strongly Supported $8M Fundraise Validates Clean Energy Strategy

The company is developing the Bristol Springs Solar Project, a large-scale solar energy project in the southwest of Western Australia, close to several industrial areas.

Frontier Energy Ltd (ASX:FHE) has resumed trading on ASX following strong demand for an $8 million fundraise validating its new clean energy strategy.

The company is developing the Bristol Springs Solar Project (BSS Project), a large-scale solar energy project with an initial output of 114MW of electricity planned in the south-west of Western Australia, 120 kilometers south from Perth and close to several industrial areas.

Well advanced BSS project

The BSS project is well advanced with development approval granted, power connection demand ongoing and a world-class support infrastructure ensuring rapid progress towards production.

This project is the first step in the company’s strategy to become an integrated clean energy company. FHE was formerly Superior Lake Resources.

“Growth Opportunities”

Managing Director Mike Young said, “The renewable energy industry offers significant growth opportunities, particularly to support nearby aluminum mines and the industrial areas of Collie and Kwinana, all of which require massive decarbonisation. That’s why we decided to shift from mining exploration and focus on clean energy opportunities.

“The BSS project is strategically located in the heart of South West WA, one of Australia’s fastest growing regional areas. The local population and the WA government are extremely supportive and progressive regarding the future needs for renewable energy solutions in the region.

“The BSS project is close to the Port of Bunbury and is well located close to excellent supporting infrastructure including roads, water, airports, several ports and a highly skilled local workforce, which gives it an edge over similar but more isolated projects.”

The initial focus of FHE will be to assess the potential expansion of the BSS project and other clean energy alternatives in the future, including wind power, storage as well as green hydrogen production.

Latest generation technology

The BSS project will integrate the latest generation technology to provide a relatively inexpensive energy solution connected to the backbone of the South West Interconnected System (SWIS).

Aerial view of the Bristol Springs solar site.

The project has received approval from the WA Regional Development Appraisal Committee and an application for an Electricity Transfer Access Agreement (ETAC) is pending with Western Power. ETAC will provide the company with access to SWIS.

Additional land acquisition opportunities are available which could allow for an increase in solar power generation up to ~490 MWdc.

Experienced advice

MD Mike Young, former head of BC Iron and Vimy Resources, is part of a strong and experienced Board of Directors and management team, including Grant Davey as Chairman, experienced Chartered Accountant Chris Bath as as Executive Director and Chief Financial Officer and Senior Director of Media and Publicity of WA Dixie Marshall as Non-Executive Director.

“We have assembled a balanced and respected board and management team with extensive Western Australian experience in project development and capital markets,” said Young.

“Importantly, we have strong relationships with key stakeholders, including major players in the Western Australian electricity market, end users, local communities and state and federal governments. “

FHE’s fundraising was strongly supported, with the board and management team contributing approximately $1.9 million of the $8 million fundraising, including $1 million from Chairman Davey . BW Equities was the lead fund manager.

The funds will enable FHE to continue the development of the BSS project, including the payment of land and lease option fees, the complete design of the front-end solar engineering (FEED), to undertake a series of studies relating to the project and for working capital and transaction expenses.

Landwehr terminal – 33/330kV transformer.

Assessment of clean energy alternatives

The company will also evaluate other renewable energy projects, including wind, solar and green hydrogen.

“One area we are keen to evaluate is the production of green hydrogen,” Young added. “This is in line with the Western Australian Government’s plan to produce and export green hydrogen by 2030 in the same quantity as LNG gas produced for export.

“This strategy, led by Hydrogen Minister Alannah MacTiernan, has highlighted the need for green energy projects in WA and hydrogen manufacturing capacity.

“We will also consider investing in other renewable energy projects, such as wind projects or other solar projects.”

The company has again complied with Chapters 1 and 2 of the ASX Listing Rules reflecting the change in its principal activities from a mineral exploration company to a clean energy company.

The shares opened at $0.165 and traded from $0.155 to $0.222 with over 3.241 million changing hands before closing at the open price.

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