Frontier Energy’s Waroona Project Secures Australian Government Investment Scheme Support

Frontier Energy Limited (ASX: FHE) has announced that Stage One of its Waroona Renewable Energy Project has been selected for support under Tender 6 of the Australian Government’s Capacity Investment Scheme (CIS). Frontier Energy Limited is a company focused on developing renewable energy projects, with its flagship project being the Waroona Renewable Energy Project in Western Australia. The CIS is an underwriting scheme backed by the Australian Government, designed to encourage investment in renewable energy and storage projects across the nation.

This significant achievement provides the Waroona Project with a revenue floor until 2042, substantially enhancing Frontier’s ability to attract favourable project financing terms. Crucially, the scheme allows for a level of upside exposure to higher energy prices, mitigating downside revenue risk. The Waroona Project was one of only three projects selected for Tender 6, which specifically targeted dispatchable capacity projects equipped with batteries and connected to Western Australia’s South West Interconnecting System.

The selection for the CIS, combined with previously assigned Reserve Capacity, establishes a guaranteed minimum level of revenue protection for Stage One until 2042. This provides considerable momentum to Frontier’s ongoing debt funding process. The company has already received indicative senior debt finance terms, including up to 70% gearing, from tier one financial institutions. Frontier will now update its shortlisted banks with the goal of finalising the debt financing package in the near term.

Frontier Executive Chairman Jamie Cullen commented that this is a major milestone, recognising the technical strength and advanced development status of Stage One in a highly competitive process. He added that the downside revenue protection until 2042 significantly improves the company’s ability to secure the most attractive debt financing package available. Frontier will now work with the Government to finalise the Capacity Investment Scheme Agreement.