Under the stage one development for its Waroona Renewable Energy Project in Western Australia, Frontier Energy (ASX:FHE) has selected a longer battery duration at lower capital costs, further enhancing the project’s economics.
Located 120km south of Perth, the Waroona Project comprises a 120 megawatt solar facility and an integrated four-hour 80 megawatt battery.
Frontier, which has a market capitalisation of $209.79 million, says the final battery selection resulted in a 12% increase in the battery duration to four and a half hours, compared to four hours in the Definitive Feasibility Study (DFS).
The improved battery duration will increase Waroona’s revenue compared to the DFS, as more energy can be sold during peak electricity price periods, while reserve capacity payments will also be higher than previously estimated.
CEO Adam Kiley says the company is in a fortunate position that the costs have fallen since the release of the DFS in February.
“Battery prices have fallen due to a combination of factors, including falling raw materials prices, improvement in supply chain, and reportedly weaker than anticipated demand, resulting in an ample supply of batteries in the current market,” he says.
“The company continues to progress its funding strategy, with both debt financing and strategic partnering processes well advanced.”
Despite the capacity increase, the capital cost of the battery has reduced 5% from the original estimate of $118.5 million in the DFS.
Frontier says the improvements in the battery technology means it can deliver more energy over time. The larger storage capacity also enables further storage of electricity during times of low pricing, such as morning and lunch, and dispatch during times of peak pricing.
Frontier claims the Waroona Project has the potential to become Western Australia’s largest standalone renewable energy projects, as Frontier controls 868 hectares of adjoining freehold land, while also having approvals in place for a connection onto the state’s electricity network with a terminal adjacent to the project.
Write to Aaliyah Rogan at Mining.com.au
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