Frontier Energy Locks In $160m of Fixed Capacity Revenue for Waroona Stage One

The latest announcement is out from Frontier Energy Limited ( (AU:FHE) ).

Frontier Energy has secured 88.06 MW of peak capacity credits for Stage One of its Waroona Project for the 2027–28 Reserve Capacity Cycle at a price of $360,700 per megawatt, locking in roughly $32 million per year in fixed capacity revenue for the first five years, or about $160 million in total, before energy sales and other income. Updated independent price forecasts indicate average annual revenue of $72.5 million and EBITDA of $61.4 million over the first five years of operation, supported by record high wholesale electricity prices in Western Australia and particularly strong peak-period prices, bolstering the project’s debt financing prospects; the company has advanced its debt workstreams, including appointing an independent technical engineer and progressing key contracts, and has raised $11.5 million in equity to complete financing and meet reserve capacity security requirements.

The most recent analyst rating on (AU:FHE) stock is a Sell with a A$0.22 price target. To see the full list of analyst forecasts on Frontier Energy Limited stock, see the AU:FHE Stock Forecast page.

More about Frontier Energy Limited

Frontier Energy Limited is an Australia-based power developer focused on the Waroona Project in Western Australia, targeting electricity generation for the Wholesale Electricity Market and associated revenue streams such as capacity credits, energy sales and environmental certificates.

Average Trading Volume: 203,139

Technical Sentiment Signal: Sell

Current Market Cap: A$129.4M

For a thorough assessment of FHE stock, go to TipRanks’ Stock Analysis page.