en.Wedoany.com Reported - The first phase (132MW capacity) of the planned Waroona Renewable Energy Project in Western Australia has secured financing support. Developer Frontier Energy announced it has obtained A$110 million (approximately US$78 million) in equity funding commitments from institutional and sophisticated investors, specifically allocated for the construction of this phase.
According to the ASX-listed company, by upgrading solar modules from 610W to more efficient 660W models, the installed capacity of the first-phase solar farm has been increased from the original 120MW to 132MW, utilizing approximately 200,000 modules and 1,855 trackers. Meanwhile, the planned Battery Energy Storage System (BESS) capacity has been expanded from the previously planned 80MW/4.75 hours to 81.5MW/6.9 hours, providing 562MWh of storage capability. The extended storage duration is designed to meet reserve capacity obligations (requiring a minimum BESS storage duration of 6 hours) and to enable flexible electricity sales during peak demand periods.
The conditional placement includes 550 million new shares at an issue price of A$0.20 per share, representing a 23.1% discount to the closing price of A$0.260 on June 1, 2026. All company directors have committed to investing A$3.3 million in this funding round. The plan is subject to approval at a shareholder meeting scheduled for July 10, 2026. Canaccord Genuity is acting as Lead Manager, with Yelverton Capital and CPS Capital Group jointly serving as Co-Managers.
The Waroona project has been under development for several years. Since Frontier acquired Waroona Energy and consolidated land in late 2023, forming a total 335MW solar portfolio, the plan has undergone multiple adjustments. In October 2024, the project was temporarily paused after failing to secure reserve capacity credits from the Australian Energy Market Operator (AEMO), which were expected to generate A$27 million in annual revenue during the first five years of operation. Losing these credits meant the company needed to adjust the project's financing and revenue model before re-entering the market.
The total capital cost (including contingencies) for the updated first phase is A$327 million. Phase one includes Engineering, Procurement, and Construction (EPC) contracts for the solar and BESS facilities, an EPC contract for the new 330kV Waroona substation, and a Western Power interconnection works contract. Monford Group has been appointed as the PEC contractor and has completed the early contractor involvement process to refine costs and mitigate construction risks.
Senior debt is expected to receive credit approval in July 2026, targeting coverage of 70% of the total phase one funding, with a tenor of up to 20 years and pricing referenced to infrastructure project finance margins. Executive Chairman Jamie Cullen stated that this equity raise will advance the first phase to financial close. "We will then commence construction of Phase One while simultaneously progressing the development of Phase Two," Cullen said. He added that the interest shown by new institutional investors and Western Australian family offices "underscores the quality of Phase One and the potential of the future Waroona development, which is set to create a major renewable energy zone in southwest Western Australia."
Frontier Energy plans to achieve commercial operation for Phase One by October 2027, providing replacement power for the South West Interconnected System (SWIS) in Western Australia as aging coal and gas-fired generators retire from the market before 2031.
The company has mapped out a multi-stage expansion path, targeting approximately 1GW of solar generation and 660MW of battery storage by 2031. This development strategy aims to leverage the existing Landwehr terminal located 0.5 kilometers from the site, avoiding reliance on new major transmission grid construction. Phase Two has received development approval and is similar in scale to Phase One, targeting approximately 120MW of solar and 80MW of battery storage, with a final feasibility study expected to progress in 2026.
Following the completion of the A$110 million equity placement, funding will also be available for early works on the Phase Two expansion, ensuring project development continuity during Phase One construction. A notice of meeting is expected to be released in the coming days, with settlement of the new shares scheduled for July 15, 2026, subject to shareholder approval.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
