PERTH (miningweekly.com) – ASX-listed Frontier Energy has flagged earlier-than-expected green hydrogen production from its Bristol Springs solar project, in Western Australia.
The company said on Tuesday that preliminary findings from the ongoing green hydrogen study had indicated that commercial quantities of green hydrogen can be produced from the 114 MW Stage 1 solar production, which is significantly earlier than originally anticipated.
“The Stage 1 solar project is an excellent foundation for the company to move into the renewable energy sector, as we believe it will generate solid returns over at least a 30-year operating period, in a market environment of ever-increasing clean energy demand,” said MD Mike Young.
“As part of the green hydrogen study, the Xodus Group was asked to determine what size solar production, as a minimum, would be required to be able to commence green hydrogen production. We originally anticipated this would be larger than the Stage 1 project to justify the additional capital costs associated with hydrogen production.
“The Bristol Springs project is, however, uniquely located around significant existing infrastructure, which is critical for the hydrogen industry, meaning our initial capital costs will be significantly less compared to more remote projects for first production,” said Young.
“Our ability to service the most likely first adopters of hydrogen means we are also likely to have customers for our product. Given the industry remains in its infancy, the ability to target these specific customers is somewhat more important than after more widespread adoption.”
Young said that given the expectations for diesel prices, on a direct comparison, hydrogen use in the long-haul transport industry was already an economically viable alternative.
Frontier is now working to complete both the renewable expansion and green hydrogen studies at Bristol Springs, and has started seeking expressions of interest for power purchase agreements for renewable energy offtake from the Stage 1 operation.
This data will form the basis for a final investment decision for construction of the solar farm, and as part of this process, Frontier will also gauge preliminary interest for hydrogen offtake agreements.