Frontier Energy Limited revealed that optimisation work found a $9.5 million capital cost reduction for the 114MW solar farm (Stage One) at the Bristol Spring Green Hydrogen Project in Western Australia (WA).
Frontier said it is nearing completion of the Stage One Definitive Feasibility Study (DFS), which is scheduled for delivery in March 2023.
According to Frontier, the WA Government continues to announce large decarbonisation targets, which increase the Project’s strategic importance given its unique location, which has access to both the WA power grid and is close to (>1km) the Dampier to Bunbury Natural Gas Pipeline (DBNGP).
“With costs continuing to rise across all industries due to global inflation and supply chain pressures, to have such a significant capital reduction identified is pleasing. This should ensure we do not see a cost blow out for the total 114MW solar farm (PFS estimate $166m), when the DFS is completed in March 2023,” Managing Director Sam Lee Mohan said.
Frontier added the State Government had increased its efforts to decarbonise. Recent developments include planned legislation for net zero emissions by 2050, a 2030 gas emissions reduction target of 80% (compared to 2020) for all government agencies, and, potentially most importantly for the Project, the government’s goal of using green hydrogen to power 1% of the state’s electricity generation. The company said the policy views are forward-thinking for the industry and that Frontier will continue to engage with the government to ensure implementation does not lapse.
According to Frontier, the targets and agreements strengthen the Project’s strategic importance since it is the only big renewable energy project (scalable to +1GW) that also connects to the unconstrained 330kV terminal and lines while being next to the Dampier to Bunbury Gas Pipeline.
Frontier contracted Incite Energy as part of the DFS for the Stage One Green Hydrogen initiative. Incite previously completed the 114MW Project’s Front End Engineering Design (FEED).
The new design moves the point of connection to within 1 km of the Landwehr Terminal (as opposed to the original design, which was at the same location as the solar farm and required 5km of power lines), lowering the capital cost by approximately 50%, or $9.5m, compared to the PFS estimate of $19.1m.
All capital estimates for the Project, including the PFS estimate of $166 million and the 36MW electrolyser, are being finalised and will be included in the DFS, which will be released in March 2023.
The link to the Landwehr Terminal, which connects to the WA electrical grid (the South West Interconnected System (SWIS)), is one of the Project’s primary differentiators from other green hydrogen development initiatives.
Frontier obtained one of the two remaining Landwehr connections, with the other secured by Waroona Energy Pty Ltd, which has entered into a cooperative agreement with the Company.
According to Frontier, the Landwehr connection enables unused daytime power generation periods to be sold into the balancing market or to a consumer via a Power Purchase Agreement.
The grid connection allows the project to use the grid as a virtual battery to assure a consistent supply of electricity to the electrolyser during periods of low energy production.
 at the Bristol Spring Green Hydrogen Project in Western Australia (WA).){kind=link}