PERTH (miningweekly.com) – The definitive feasibility study (DFS) for the Bristol Springs renewable energy project, in Western Australia, has confirmed its potential to produce some 4.9-million kilogrammes a year of hydrogen at a total cost of A$2.77/kg.
ASX-listed Frontier Energy on Monday told shareholders that the Stage 1 development is expected to cost A$242.5-million, which is up slightly from the A$236.2-million reported in the prefeasibility study, with the capital cost including a 114 MW solar farm and 36 MW alkaline electrolyser.
“We are delighted with the outcome of the study as it again highlighted the unique opportunity we have at Bristol Springs to be a first mover in the green hydrogen industry,” said Frontier Energy MD Sam Lee Mohan.
“The infrastructure surrounding the project not only allows for our forecast costs to be some of the lowest in Australia for green hydrogen production, but also provides an opportunity for early production as the industry continues to mature over time.
“We believe the most likely pathways to early production will come from hard-to-abate sectors through accessing the nearby Dampier to Bunbury Natural Gas Pipeline, which can already take up to 9% hydrogen, as well as the potential for the development of a peaking plant, which uses hydrogen for flexible energy generation to meet high demand periods on the WA electricity grid,” said Lee Mohan.
“Both of these potential early pathways to production are in line with the Western Australian government’s strategy and targets for the production and consumption of green hydrogen within the state.”
Looking ahead, Frontier will now work to secure offtake with a foundation customer for the Bristol Springs project, and said on Monday that it was in the advanced stages of a process for engaging with a number of parties.
Following an offtake agreement, the company will start project financing discussions and negotiations.