Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Firm) is happy to supply an replace on the battery procurement course of for the Stage One improvement of its Waroona Renewable Power Challenge (Challenge), which includes a 120MW photo voltaic facility and built-in four-hour 80MW battery.
HIGHLIGHTS
- Closing battery know-how choice has resulted in a 12% improve within the battery length to roughly 4.5 hours, in comparison with 4 hours within the Definitive Feasibility Research1 (DFS)
- The improved battery length will improve Challenge income in comparison with the DFS, as extra power could be offered throughout peak electrical energy worth intervals, while Reserve Capability Funds (RCP) can even be increased than beforehand forecast
- Regardless of this important enchancment, the capital value for the battery has fallen by roughly 5% in comparison with the DFS (DFS estimate – $118.5 million)
- Frontier has narrowed its collection of most well-liked battery companions to 2, each Tier 1 rated producers
- The Firm’s funding technique continues to progress strongly with each debt financing and strategic partnering properly superior
CEO Adam Kiley commented: “The Firm is within the lucky place that the price of the 2 largest capital gadgets, photo voltaic panels and battery, have fallen considerably for the reason that launch of the DFS in February.
Battery costs have fallen attributable to a mix of things, together with falling uncooked supplies costs, enchancment in provide chain, and reportedly weaker than anticipated demand, leading to an ample provide of batteries within the present market.
This distinctive scenario is to Frontier’s benefit, with improved battery capability leading to elevated length (roughly 4.5 hours in comparison with 4 hours within the DFS), rising Challenge income whereas on the identical time reaching a decrease capital value.
The Firm continues to progress its funding technique, with each debt financing and strategic partnering processes properly superior.”
Closing battery choice confirms longer battery length at a decrease capital value, enhancing Challenge economics
As a part of the Stage One improvement of the Challenge, Frontier concluded that the optimum technique for Challenge improvement consists of a 120MW photo voltaic facility and an 80MW/320 MWh battery, i.e. the battery is able to storing and discharging 80MW for 4 hours.
Frontier chosen a DC coupled system, the bottom capex and best approach of integrating battery storage into new renewable power installations such because the Waroona photo voltaic facility. In a DC coupled system, the battery is linked on to the DC aspect of the renewable power supply, the photo voltaic panels. DC coupling eliminates the necessity for an extra inverter to transform DC to AC for the reason that battery system operates straight with the DC electrical energy generated by the renewable supply. See Picture 1.
Picture 1: DC Coupling PV plus storage
Lithium Iron (Fe) Phosphate (LFP) batteries have been chosen for the Challenge as they’re confirmed know-how with superior security, longer cycle life, increased power density, sooner charging capabilities, wider working temperature vary, and extra beneficial to the setting than different battery applied sciences.
Utility-scale LFP batteries expertise capability degradation over time attributable to components like calendar ageing, cycle ageing, temperature, state of cost administration, manufacturing high quality, and utilization patterns. These components contribute to a gradual discount within the battery’s capability and efficiency over its lifespan. The DFS assumed a degradation curve which was primarily based on presents obtained on the time, that had a degradation of ~16% over the preliminary 10 years and ~26% over the primary 20 years of battery life. See Picture 2.
The Firm’s aggressive tender course of has delivered important enhancements in comparison with the DFS. Frontier has narrowed its collection of the popular battery companions to 2, each of that are rated as Tier 1 battery producers.
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