en.Wedoany.com Reported - Frontier Energy has appointed Western Australian renewable energy contractor Monford Group as the fixed-price engineering, procurement, and construction (EPC) contractor for the first phase of its Waroona Renewable Energy Project, a 132MWdc facility. Under the agreement, Monford has agreed to receive AUD 5 million (approximately USD 3.5 million) of the contract value in the form of shares in developer Frontier.
The appointment follows an early contractor involvement process completed by both parties, which allowed for the refinement of the scope and design of the 132MWdc solar and 81.5MW/562MWh battery energy storage facility prior to the formal signing. Monford has commenced detailed design and mobilization preparations under an interim agreement, with full site mobilization scheduled for September 2026. The EPC scope covers commissioning and delivery of a fully grid-connected solar-plus-storage facility, with first power generation targeted for the second half of 2028.
In lieu of AUD 5 million in cash, Monford has obtained an option to acquire 25 million ordinary shares in Frontier at a zero exercise price. Frontier Executive Chairman Jamie Cullen stated that the arrangement reflects a strong alignment of interests between the two parties and is a positive endorsement of the quality and long-term potential of the Waroona project. Monford CEO Ciaran Shannon said the project solidifies the company's position as a leading contractor in Australia's renewable energy sector, and participating as a shareholder aligns both parties' interests with the project's long-term success, demonstrating Monford's confidence in Frontier's vision and growth strategy.
Frontier Energy noted in its announcement that Monford's previous delivery of the Cunderdin 128MWdc solar and 55MW 4-hour duration battery energy storage system (BESS) project—another hybrid facility connected to Western Australia's South West Interconnected System (SWIS) with a configuration similar to Waroona Phase 1—is particularly relevant to this appointment.
Prior to the EPC appointment, Frontier announced on July 17 that it had received credit approval commitments for project finance debt facilities of up to AUD 280 million from Natixis CIB and Sumitomo Mitsui Banking Corporation. The financing package includes up to AUD 250 million in construction and term loans, up to AUD 13 million in bank guarantee facilities, and up to AUD 17 million in debt service reserves, all aligned with green loan principles. Combined with a conditional equity placement of AUD 110 million secured in June 2026 (approved by shareholders on July 10), the project is expected to be fully funded through to commissioning. The equity placement involves the issuance of 550 million new shares at AUD 0.20 per share, with settlement scheduled for July 21, 2026.
In parallel with Monford's early works, Frontier has advanced the tender for Western Power's interconnection engineering, initiated substation EPC activities with Global Power Services, and placed long-lead orders for main transformers and substation equipment.
The Waroona project has undergone a lengthy development process. Frontier consolidated the site through the acquisition of Waroona Energy in late 2023, forming a solar portfolio with a total capacity of 335MW. The project was temporarily suspended in October 2024 after Frontier failed to secure reserve capacity credits from AEMO—which were expected to generate up to AUD 27 million in annual revenue during the first five years of the project—necessitating a restructuring of financing and revenue assumptions. Subsequently, solar capacity was increased from 120MW to 132MW using more efficient 660W modules (up from 610W). Meanwhile, the battery energy storage system was expanded to 562MWh to meet the requirement for at least 6 hours of BESS duration under Western Australia's reserve capacity framework.
Frontier has planned a multi-phase expansion of Waroona, targeting approximately 1GW of solar generation and 660MW of storage by 2031. Phase 2 has received development approval for approximately 120MW of solar and 80MW of storage, with feasibility studies expected to advance in 2026 using a portion of the proceeds from the AUD 110 million equity placement. The site is located just 0.5 kilometers from the existing Landwehr Terminal substation, enabling multi-phase expansion without the need for significant new transmission infrastructure.
