Frontier Energy (FHE) Investor Update summary

Energy demand and project context

• Western Australia must increase energy generation by 50% within four years, requiring 10 TW of new capacity, equivalent to building 17 large wind farms or 44 projects like stage one.

• Only one new renewable project has been added to the grid in the past four years, highlighting the challenge and urgency.

Project status and financing

• All grid connections, permits, and approvals for stage one are secured, making the project ready to proceed.

• Finalizing debt financing is the immediate priority, with capital raising of AUD 10 million nearly complete and strong shareholder support.

• Revenue certainty from a five-year reserve capacity lock-in is secured, supporting debt financing.

Regulatory and market updates

• The minimum energy storage obligation increased from four to six hours, prompting a battery upgrade to secure full reserve capacity payments.

• Benchmark Reserve Capacity Price is expected to rise to AUD 400,000–420,000, supporting new energy projects.

• CIS application was withdrawn and resubmitted for both stage one and two, with results expected in March–April next year.