PERTH (miningweekly.com) – ASX-listed Frontier Energy has signed a binding agreement with the Water Corporation for the supply of up to 1 250 kℓ/day of water for the Bristol Springs renewable energy project, in Western Australia.

Frontier told shareholders on Tuesday that the volume of water was not only sufficient for the proposed Stage 1 operations, but would also support major expansion into the future.

“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,” said Frontier MD Sam Lee Mohan.

“Being located 3 km from one of the major water pipelines in Western Australia, 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.”

A prefeasibility study into the Bristol Springs project found that it could produce 4.4-million kilograms of hydrogen a year, resulting in a cost of A$2.83/kg of hydrogen produced. The study is based on the development of a green hydrogen production facility at Bristol Springs, based on a 114 MW solar farm.

The hydrogen project is expected to require a capital investment of A$69.9-million, with sustaining costs estimated at A$11.7-million. Capital costs for the Stage 1 solar operation have been estimated at A$166.3-million.

The water supply agreement will start at the end of December 2024 and is conditional on the project achieving a final investment decision. The agreement will run for an initial 15-year term.

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.