Aspiring clean energy producer Frontier Energy (ASX: FHE) has restarted trading on the ASX following an $8 million capital raising to fund development of its Bristol Springs solar project in Western Australia’s South West.
The capital raising saw the issue of 61.5 million shares at $0.13 each.
Backing the capital raising was Frontier’s own board and management, which kicked-in $1.9 million of the full $8 million.
Of this $1.9 million, non-executive chairman Grant Davey invested $1 million into the company.
Investors rewarded Frontier’s new direction once trading resumed today – propelling the share price up more than 70% to an intraday high of $0.222, before settling around $0.165.
Formerly known as Superior Lake Resources, Frontier’s first renewable energy focus will be developing Bristol Springs, which is 120km south of Perth and surrounded by “world class supporting infrastructure” in the heart of the South West, which is one of the fastest growing regional areas in Australia.
The project is also close to the Port of Bunbury and near roads, water, airports, other ports, and a highly skilled workforce.
Frontier managing director Mike Young said this gives Bristol Springs an advantage over similar isolated projects.
Bristol Springs solar project
Bristol Springs is already “significantly advanced” with development approval granted, and an electricity connection application in progress.
Frontier plans initially to produce about 114 megawatts of direct current (MWdc) electricity from Bristol Springs, with the project to incorporate the latest technology to deliver the energy into the South West Interconnected System.
The company noted there were land acquisition opportunities in the region that could enable solar power generation to be increased to 490MWdc.
Funds from the $8 million raising will be used to continue advancing Bristol Springs including payment of land option and lease fees, completing a solar front end engineering design, and fund a range of studies relating to the project.
Clean energy opportunities
Commenting on Frontier’s new focus on clean energies, Mr Young said the industry offers “significant growth opportunities” – particularly with providing green energy to power nearby mining operations, and the Collie and Kwinana industrial precincts, which all require “massive decarbonisation”.
“This is why we decided to transition from mining exploration and focus on clean energy opportunities.”
Mr Young noted the company was also “keen to assess” the potential of producing green hydrogen.
“This is in line with the WA 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 WA green energy projects and hydrogen manufacturing capability.”
To drive Frontier’s growth in the clean energy space, Mr Young said the company’s board had “extensive” experience in project development and capital markets.
“Importantly, we have strong relationships with key stakeholders, including major players in the WA electricity market, end-users, local communities and both state and federal government.”
Funds from the raising will also be used to assess other solar, green hydrogen and wind renewable energy projects.