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Frontier Energy (ASX:FHE) expects to have selected an engineering, procurement and construction (EPC) contractor for its WA-based Waroona renewables play before 1HFY25.
According to Frontier, forecast costs are so far lower than what was outlined in an earlier DFS for the project.
This has been logged even as the company reports “only tier one suppliers have been included,” and also, that no supply chain delays are yet identifiable.
“Expressions of interest by a number of highly regarded EPC contractors have been received,” the company reported on Tuesday, with FHE to get on with the task of shortlisting imminently.
Also of interest to Frontier is a recent event on WA electricity markets.
Peak energy prices between 4pm–9pm in the March quarter increased at one point by 65% to $172/MWh compared to 2023.
This happened not long after WA hit a new ATH peak demand of 4.23GW in February, with the prior record surpassed six times in Q1CY24.
All in all, Frontier sees its plans to store grid-scale volumes of solar power for discharge into a volatile energy grid further ratified by these developments.
“Good quality equipment supplied by reputable suppliers helps us ensure the facility will start-up and operate as expected and importantly will be reliable,” Frontier chief Adam Kiley said.
“In addition, the Company is also quickly progressing our funding strategy, as both the debt financing and the potential strategic divestment process well advanced.”
FHE shares last traded at 34cps.
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