Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to announce the Company has shortlisted two highly experienced engineering, procurement, and construction (EPC) contractors for the development of the Stage One 114MW Bristol Springs solar plant construction. The preferred party will be selected during 4Q2022.
This selection process relates only to the construction of the Stage One 114MW solar plant and excludes the development of the 36.6MW alkaline electrolyser (Hydrogen Facility). An EPC tender process for the development of the Hydrogen Facility will commence at the completion of the Pre-FEED Study, which will be released during 4Q2022.
- Two companies have been shortlisted from an initial five interested parties, regarding the EPC contract for the Stage One 114MW Bristol Springs solar plant.
- An EPC tender process for the Hydrogen Facility will commence at the completion of the Pre-FEED Study.
- Both shortlisted companies have significant experience in the development of industrial scale solar farms in Australia and were highly price competitive in comparison to the Green Hydrogen Pre-Feasibility Study1.
- The preferred EPC contractor will be selected during late 4Q2022.
- The EPC contract is a key requirement for the project financing process, which is expected to commence in early 2023.
Executive Chairman Grant Davey commented: “We were pleased to have received strong interest regarding the EPC process for the Stage One solar farm development from multiple, internationally recognised construction firms.
Importantly, the shortlisted parties have significant experience in the development of industrial solar development projects in Australia. In addition, despite the high inflationary environment, the costs forecast were highly competitive and in line with the PFS estimate.
Shortlist for EPC solar construction
The Company’s strategy for Stage One green hydrogen production is to develop the 114MW solar farm to power a 36.6MW alkaline electrolyser, producing approximately 4.4 million kilograms of green hydrogen per annum.
Stage One of the Bristol Springs solar farm (BSSF) is located on an area of approximately 195 hectares (Image 2 below). The site is undeveloped and is predominantly cleared of vegetation from its historical use for agricultural purposes.
Following the Front-End Engineering Design (FEED) for the Stage One solar farm, completed by EPC Technologies (EPCT), and incorporated within the Green Hydrogen Pre-Feasibility Study2, the Company engaged a select number of parties to tender for the EPC contract.
From this initial process the Company received five proposals, of which two were shortlisted for further evaluation prior to selecting the preferred party.
The Company has engaged GHD to assist in this selection process. GHS is also completing the Pre-FEED Study for the Hydrogen Facility.
GHD will ensure all technical aspects of the tender submissions are aligned to the Front-End Engineering Design (FEED). It will also ensure all technology selected and engineering practices are compliant with relevant codes, standards and regulations.
Following this review process the Company will select the preferred group, with the process expected to be completed during 4Q2022.
114MW Solar Facility – Overview
EPC Technologies (EPCT) was engaged by the Company to complete FEED for Stage One 114MW. This work was incorporated within the Green Hydrogen Pre-Feasibility Study3.
The site will be connected to the existing Western Power 330kV transmission network via Landwehr Terminal which is located approximately 4 kilometres north-east of BSSF. BSSF has implemented a modular, plug and play approach to the design technology. This enables BSSF to have a large portion of the materials factory tested prior to installation on site.
The capital cost to develop the 114MW solar project is estimated at $166m. A breakdown of the capital costs is outlined in Table 1 below.
Image 3 below highlights the forecast energy generation for the BSSF on a monthly basis. The total power generation is estimated at 250GWh during the first year of production. Degradation of 0.3% per annum is assumed thereafter.
About Frontier Energy
Frontier Energy Ltd (ASX: FHE; OTCQB: FRHYF) is developing the Bristol Springs Green Hydrogen Project (the Project) located 120km from Perth in Western Australia.
The Company recently completed a Pre-Feasibility Study1 that outlined the Project’s potential to be both an earlier mover and one of the lowest cost green hydrogen assets in Australia.
The Project benefits from its unique location surrounded by major infrastructure. This reduces operating and capital costs compared to more remote hydrogen projects, whilst also being surrounded by likely early adopters into the hydrogen industry in the transition from fossil fuels.
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