Frontier Energy optimistic about H2 potential at 114-MW Aussie solar project

Australian company Frontier Energy Ltd (ASX:FHE) is encouraged that it can produce hydrogen earlier than initially expected at its Bristol Springs solar project near Waroona in Western Australia.

It said today that according to preliminary results from an ongoing study, commercial quantities of green hydrogen could be produced from the 114-MW direct current (DC) Stage One of the project, while it was originally anticipated larger solar capacity to be required to justify the investment in hydrogen production.

The company pointed out that the project’s proximity to grid, gas and water infrastructure reduces capital costs. In addition, the current diesel price of some AUD 2 (USD 1.4/EUR 1.3) per litre equates to a hydrogen price of AUD 8 per kg. Frontier Energy expects demand from early hydrogen adopters such as blending in natural gas networks and replacing diesel in the long-haul transportation.

The developer recently selected alkaline electrolysis as its preferred technology for hydrogen production.

The company is yet to make a final investment decision for the 114-MW solar project and will continue with its studies. It has started a process seeking expressions of interest for power purchase agreements (PPAs) for renewable electricity offtake and will also weigh preliminary interest for hydrogen offtake contracts.