Highlights

  • Waroona Stage One combines 132 MW of solar with an 81.5 MW battery offering 6.9 hours of storage.
  • The roughly A$310 million budget is backed by a A$110 million Placement and Debt of up to A$250 million.
  • Construction is scheduled to finish in February 2028, with full commissioning targeted for July 2028.
  • Management expects about A$60 million of annual EBITDA once Stage One is commissioned, over a minimum 30-year life.

Frontier Energy Ltd (ASX:FHE) has moved its Waroona Renewable Energy Project in Western Australia from planning into construction, with contractor Monford Group mobilising for early site works in September 2026 after all major Stage One Supply and installation contracts were executed on 1 September.

The developer describes Stage One as fully funded, with a Capital budget of about A$310 million that includes A$22 million of contingency.

The build is being overseen by executive chairman Jamie Cullen, who joined about six months before the September update in a hands-on role, and chief operating officer Lee Illingworth, who previously worked with him at Pacific Energy.

Contracts Locked In for Stage One

Monford Group is the engineering, procurement and construction contractor under lump-sum, fixed-price arrangements, with Frontier free-issuing the major equipment. LONGi will supply more than 200,000 solar panels rated at 650W and 655W, Trina Storage the battery system with a 20-year warranty and long-term services agreement, SMA Australia the inverters and Nextpower the tracker systems, while Global Power Services handles substation works.

Western Power's access and interconnection contracts are now unconditional, allowing exports of up to 99 MW at the Landwehr Terminal and imports of up to 95 MW to charge the battery.

Funding Structure and Project Economics

Frontier raised A$110 million through a placement, and a debt Facility of up to A$250 million, including contingency, has been underwritten by Sumitomo Mitsui Banking Corporation and Natixis CIB. Management estimates a project life of at least 30 years, a six-year payback and a geared internal rate of return above 20%.

Revenue is expected to come from annual State capacity payments and Federal support secured through 2042, which the company says more than covers Stage One debt servicing and operating costs. Commissioning power is expected to be exported progressively to the grid before final completion, bringing forward early cash flow.

Construction Timeline and Further Stages

Nextpower tracker deliveries were scheduled to begin in November 2026 and LONGi panel deliveries in January 2027, with up to 200 personnel expected on site at peak. Construction is targeted for completion in February 2028 and full commissioning in July 2028. Frontier has said first generation is expected in 2028, with an owner's team experienced in renewable energy construction and safety overseeing delivery.

Planning for Stage Two is under way, and about 530 hectares remain available for further hybrid stages, subject to securing offtake agreements. Executive chairman Jamie Cullen has reported approaches from digital infrastructure operators, and the company is also exploring off-grid opportunities. The Shareholder base has grown to about 3,500 from about 2,850 over six months.

Shares were priced at A$0.178 on 2 November 2026, down 1.39% on the day, giving a Market Capitalisation of A$197.48 million and a 12-month decline of 40.83%.