Key facts from Frontier Energy's announcement

Frontier Energy (ASX:FHE) has released an updated Definitive Feasibility Study for its Waroona Renewable Energy Project in Western Australia. The study highlights a $21 million reduction in capital costs, bringing the total to $283 million. The project features a 120MWdc solar facility with an 80MW battery, forecasting a payback period of 6.1 years.

Overview and future outlook for Frontier Energy

Frontier Energy's updated DFS for the Waroona Renewable Energy Project indicates significant capital cost savings and robust financial returns. The project, featuring a 120MWdc solar facility and 80MW battery, is set to generate an average EBITDA of $57 million annually for the first decade. With all major approvals in place, the project is poised for development, supported by a secured access contract with Western Power. Frontier Energy is planning to fund the project through a mix of debt and equity, aiming to minimize shareholder dilution. Positioned uniquely as the sole pure-play renewable energy developer on the ASX, Frontier Energy is set to benefit from the rising electricity demand in Western Australia. The company's strategy includes potential expansion on its current site, maximizing its long-term energy production capabilities.

Executive commentary from Frontier Energy

The updated DFS confirms the Waroona Renewable Energy Project as a highly profitable venture with long-term operational viability and low operating costs.