Frontier Energy’s renewable hydrogen venture near Waroona is one step closer to production after securing a 15-year water supply agreement.
Frontier Energy’s renewable hydrogen venture near Waroona is one step closer to becoming operational after securing a water supply agreement.
The Perth-based company signed a 15-year water supply agreement with Water Corporation for its proposed Bristol Springs Green Hydrogen project in the South West.
Frontier recently completed the project’s pre-feasibility study and plans to release the definitive feasibility study this month.
The project is expected to be one of the first low-cost renewable hydrogen projects in Australia, with production tipped for 2025, according to Frontier.
Under the agreement, 1,250 kilolitres of water per day will be supplied to the facility through existing infrastructure.
In the production of green hydrogen, the water will be split into hydrogen and oxygen through the process of electrolysis using renewable electricity.
“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,” managing director Sam Lee Mohan said.
“Being located three kilometres 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.”
The deal represents Water Corporation’s first commercial supply contract to a renewable hydrogen facility, expected to commence in December 2024.
The project is expected to create around 300 new construction jobs and 50 additional jobs during production.
Water Minister Simone McGurk said the long-term supply agreement with Frontier Energy was a win-win and an important milestone for developing the renewable hydrogen industry in WA.
"In one of the most climate-impacted regions on earth, renewable hydrogen will help decarbonise WA and support a strong, resilient, and diversified economy,” she said.
"I commend Water Corporation for supporting what is expected to be one of the first, low-cost commercial renewable hydrogen projects in Australia."
Hydrogen Industry Minister Roger Cook said the project was a fantastic example of a WA firm leading the way to become one of the lowest-cost producers of renewable hydrogen.
"The McGowan government is committed to assisting such emerging hydrogen production projects, as we work to establish WA as a significant producer, exporter and user of renewable hydrogen,” he said.
"Renewable hydrogen will be critical for hard-to-abate sectors, such as industrial processing and transport, to reduce their emissions and help the State achieve net zero greenhouse gas emissions by 2050."
On the ASX, Frontier Energy shares were down 6.90 per cent to 40 cents at 1.51PM AEDT.
