Waroona Renewable Energy Project on track to secure Stage 1 funding

Frontier Energy’s Waroona Renewable Energy Project in Western Australia is on track to secure funding for Stage One construction, following a project finance debt facility agreement of up to $280 million (USD 194 million).

The syndicated facility agreement is with international lenders led by France-headquartered investment bank Natixis CIB and Japanese financial services conglomerate Sumitomo Mitsui Banking Corporation.

Prior to achieving financial close, Frontier must execute its Capacity Investment Scheme (CIS) agreement with the federal government and enter into interest rate hedging, with first drawdown of the debt facilities forecast to occur in Q12027.

Frontier Executive Chairman Jamie Cullen said execution of the SFA is a major milestone for Frontier and comes as site works at Stage One are ramping up.

“We would like to thank Azure Capital, the Company’s debt finance advisor, as well as the syndicated lending consortium that has committed the funding for developing Stage One, a major renewable energy project for Western Australia,” Cullen said.

“With the SFA executed and financial close on track to occur during November, construction activities at our Waroona Project are ramping up, whilst we also continue to work through future expansion opportunities.”

Waroona Renewable Energy Project

Stage One of the Waroona Renewable Energy Project is located approximately 120 kilometres south of Perth and will connect to the South West Interconnected System (SWIS) via the 330 kV Landwehr Terminal about 0.5 kilometres away.

It is in proximity to major industrial precincts, including three alumina refineries (owned by Alcoa and South32) and two industrial zones containing chemical and heavy industry (Kwinana and Kemerton), all of which are incentivised to decarbonise their operations.