Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to announce that the Company and Water Corporation have signed a Binding Agreement (“Agreement”) for the supply of up to 1,250 Kl/day of water to be used at the Company’s Bristol Springs Renewable Energy Project (the “Project”).
This volume of water is not only sufficient for Stage One but will also support major expansion into the future.
Water is an essential element for green hydrogen production. Without access to suitable water a desalination facility would be required, adding significantly to capital costs, additional environmental assessments and regulatory approvals.
HIGHLIGHTS
- Frontier and Water Corporation have signed a binding Water Supply Agreement to deliver up to 1,250 Kl/day of water to the Project
- This is a major milestone for the Company as accessing suitable water is one of two critical elements for green hydrogen production (the other being renewable energy)
- Water will be accessed via existing infrastructure (the Stirling Trunk Main) which is less than 3km from the Project
- The Agreement allows for the provision of sufficient water for use in a 150MW electrolyser, which is four times the size proposed in Stage One (36.6MW), supporting the Company’s future expansion strategy
- The cost of water per unit is in-line with expectations and will be included in the Definitive Feasibility Study (DFS) to be released in March 2023
Managing Director Sam Lee Mohan commented: “We are delighted to have executed this essential agreement with Water Corporation and thank them and the Western Australian Government for their continued support for our Project.
Being located 3km from one of the major water pipelines in WA, yet again highlights the advantage this Project has in being able to access existing infrastructure. Without this, a desalination facility would be required, which would add millions to the Project’s development cost, as well as add significantly to first production timeline, due to the requirement for additional approvals and environmental studies.”
Binding Agreement signed with Water Corporation
Following negotiations with Water Corporation, a binding Water Supply Agreement has been executed. This Agreement ensures the availability of up to 1,250kl/day of water for the Project’s green hydrogen production strategy.
Water will be supplied to the Project via the Stirling Trunk Main, which carries water from the Southern Dams and the Southern Seawater Desalination Plant to the Integrated Water Supply
Scheme (IWSS). The IWSS delivers 303 billion litres of water each year in WA. The Stirling Trunk Main is located approximately 3km from the proposed location of the hydrogen facility as shown in Image 1 below.
Key terms of the Water Supply Agreement include:
- Commencement Date is up to 31st December 2024, conditional on the Project achieving a Final Investment Decision;
- Term – initial term of 15 years from the Commencement Date;
- Maximum Allowable Instantaneous Rate and resulting Daily Entitlement – initially 520l/min and 750kl/day, increasing to 868l/min and1,250kl/day; and
- All costs are in-line with the Pre-Feasibility Study (ASX Announcement – 4th August 2022).
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Water Corporation
Water Corporation is the principal supplier of water, wastewater, drainage and bulk irrigation services in WA to hundreds of thousands of homes, businesses and farms. Water Corporation directly employs more than 3,600 people across WA, providing a high level of expertise and strong commitment to communities.
Water Corporation is owned by the WA Government and accountable to the Minister for Water Hon Simone McGurk MLA, for the delivery of services.
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.
