Frontier Energy confirms Bristol Springs as low-cost, early mover green hydrogen project
Stage one of Frontier’s Bristol Springs project is estimated to cost $242.5 million according to the definitive feasibility study.
A definitive feasibility study for the first stage of Frontier Energy’s (ASX: FHE) Bristol Springs renewable energy project in Western Australia has confirmed its potential to be a low-cost, early mover in the nation’s green hydrogen industry.
Total initial capital cost for stage one of the project has been estimated at $242.5 million and is inclusive of the 114-megawatt solar farm and a 36MW alkaline electrolyser.
The project is expected to benefit significantly from nearby infrastructure including access to an existing water pipeline and connection to the South West Interconnected System (SWIS) at the Landwehr Terminal, as well as a local skilled work force (negating the need for camp facilities).
It will drive a targeted annual production of 4.9 million kilograms of green hydrogen per year at a total unit cost of $2.77/kg (inclusive of capital costs) — representing an increase of 11% on estimates produced in the project’s pre-feasibility study.
Frontier plans to produce at least 1 gigawatt of renewable energy in the long-term from Bristol Springs, which would be sufficient to produce approximately 80Mkg/pa of green hydrogen.
The project is believed to be one of the lowest reported costs for a green hydrogen project of its scale in Australia.
Unique opportunity
Frontier managing director Sam Lee Mohan said the study highlights a “unique opportunity” at Bristol Springs.
“We believe the most likely pathways to early production will come through accessing the Dampier-to-Bunbury natural gas pipeline which can already take up to 9% hydrogen, as well as the development of a peaking plant which uses hydrogen for flexible energy generation to meet high demand periods on the state’s electricity grid,” he said.
“Both of these pathways are in line with the state government’s strategy and targets for the production and consumption of green hydrogen within WA.”
Funding talks
Frontier continues to advance offtake and funding talks for Bristol Springs prior to a final investment decision later this year.
The company has met with Australian and international banks which have expressed an interest in financing renewable energy projects.
Mr Lee Mohan said there are also various grants and credits available at state and federal level to support the project.