Delays and Decisions Ahead: Frontier’s Waroona Project Faces Critical Milestones
Frontier Energy advances its strategic investor process with multiple proposals and prepares bids for the 2025 Capacity Investment Scheme tender, while progressing key development milestones for its Waroona Renewable Energy Project.
- Multiple definitive proposals received for strategic partnership
- Capacity Investment Scheme Agreement nearing finalisation
- Bids planned for 2025 Wholesale Energy Market CIS tender
- Critical procurement and design works completed for Waroona Project
- Option agreement signed for sale of Pick Lake Zinc Project
Strategic Investor Process Advances
Frontier Energy Limited has made significant strides in its search for a strategic partner to develop the Waroona Renewable Energy Project. After receiving multiple non-binding indicative offers earlier in the year, the company progressed to a second stage where shortlisted parties conducted detailed due diligence and site visits. In June 2025, several definitive proposals were submitted, and Frontier aims to select a preferred party soon to enter exclusive negotiations for binding agreements during the third quarter.
While these proposals remain non-binding and there is no guarantee of a final deal, the advancement signals growing investor interest in Frontier’s renewable energy ambitions.
Capacity Investment Scheme Support and Upcoming Tender
The company is also moving closer to finalising its agreement under the Australian Government’s Capacity Investment Scheme (CIS), which provides a long-term revenue safety net designed to reduce financial risks for renewable projects. Frontier’s Stage One solar and battery project at Waroona secured support under the CIS earlier this year, and the formal agreement is expected soon despite some delays caused by federal election timing.
Looking ahead, the 2025 Wholesale Energy Market CIS tender is set to open in August, targeting 1.5GW of energy generation and 0.4GW of battery storage. Frontier plans to submit bids for both the Stage One solar facility and a Stage Two expansion, with the latter’s size and strategy still under assessment. The tender process will be streamlined this year, with a shorter assessment period, potentially accelerating project timelines.
Project Development Milestones
On the ground, Frontier has progressed critical development activities to keep the Waroona Project on track for commercial operations by October 2027. A key milestone was the procurement of a $4.3 million underground 330kV cable connecting the substation to the Landwehr Terminal, a long-lead item essential for project completion. Western Power has also commenced detailed design work for this connection.
Additionally, Frontier engaged the Monford Group as its engineering, procurement, and construction contractor. Monford brings extensive renewable energy experience, having contributed to several major solar and hybrid battery projects across Australia. Early works contracts include engineering design, site access roads, and environmental studies, all vital for smooth project execution.
Environmental and Regulatory Progress
Frontier has maintained strong environmental stewardship, completing cultural heritage surveys in partnership with the Gnaala Karla Booja Aboriginal Corporation, which found no material issues. The company also secured an extension of its development approval for the Stage Two expansion to December 2027 and amended its Native Vegetation Clearing Permit to reduce environmental impact and allow for future flexibility.
Comprehensive biodiversity surveys covering over 525 hectares outside the initial development area have provided valuable data to inform future project phases and regulatory approvals.
Corporate and Financial Updates
In corporate developments, Frontier entered an option agreement to sell its non-core Pick Lake Zinc Project in Canada to Panther Metals PLC for $2.75 million. This move aligns with Frontier’s focus on advancing the Waroona Project.
Financially, the company ended the quarter with $5.3 million in cash after spending $4.3 million on critical procurement. No further major capital expenditures are planned until a strategic partner is selected. Frontier has also engaged with debt financiers to explore funding options, aiming to maximise gearing and shareholder returns.
Bottom Line?
Frontier Energy’s next steps hinge on finalising strategic partnerships and CIS agreements, setting the stage for accelerated development of its flagship renewable project.
Questions in the middle?
- Which party will Frontier select as its preferred strategic investor?
- How will the final terms of the Capacity Investment Scheme Agreement impact project financing?
- What scale and scope will Frontier pursue for the Stage Two expansion bids?