Frontier Power Restricted (ASX: FHE; OTCQB: FRHYF) (Frontier or the Firm) is happy to offer an replace on the battery procurement course of for the Stage One growth of its Waroona Renewable Power Mission (Mission), which includes a 120MW photo voltaic facility and built-in four-hour 80MW battery.
HIGHLIGHTS
- Last battery expertise choice has resulted in a 12% improve within the battery period to roughly 4.5 hours, in comparison with 4 hours within the Definitive Feasibility Examine1 (DFS)
- The improved battery period will improve Mission income in comparison with the DFS, as extra power might be bought throughout peak electrical energy worth durations, while Reserve Capability Funds (RCP) may even be larger than beforehand forecast
- Regardless of this vital enchancment, the capital price for the battery has fallen by roughly 5% in comparison with the DFS (DFS estimate – $118.5 million)
- Frontier has narrowed its number 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 nicely 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 as a consequence of a mixture 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 period (roughly 4.5 hours in comparison with 4 hours within the DFS), growing Mission income whereas on the identical time attaining a decrease capital price.
The Firm continues to progress its funding technique, with each debt financing and strategic partnering processes nicely superior.”
Last battery choice confirms longer battery period at a decrease capital price, enhancing Mission economics
As a part of the Stage One growth of the Mission, Frontier concluded that the optimum technique for Mission growth 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 method 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 a further inverter to transform DC to AC for the reason that battery system operates immediately 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 Mission as they’re confirmed expertise with superior security, longer cycle life, larger power density, sooner charging capabilities, wider working temperature vary, and extra beneficial to the surroundings than different battery applied sciences.
Utility-scale LFP batteries expertise capability degradation over time as a consequence of components like calendar growing old, cycle growing old, 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 vital enhancements in comparison with the DFS. Frontier has narrowed its number of the popular battery companions to 2, each of that are rated as Tier 1 battery producers.
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