Frontier Energy secures $215m loan for Waroona Renewable Energy Project

Total capital cost for the project is $304m.

Australia’s Frontier Energy has inked a $215-m senior debt mandate with Infradebt Pty Limited for the first stage of the former’s Waroona Renewable Energy Project in Western Australia.

In a bourse filing, Frontier Energy said the terms of the financial assistance include a debt tenor of 17 years which includes the two-year construction period, and a long-term partnership for Infradebt to finance further battery projects developed by Frontier, including Stage Two of the Waroona project.

Majority of the $215m debt will be funded by the Infradebt Energy Transition Fund, a senior debt fund mandated specifically to provide debt finance to utility-scale battery projects in Australia. A long-form facility agreement and security documentation are expected to be executed in September 2024. 

The final debt quantum will be determined after confirmation of the Reserve Capacity Price from the Australian Energy Market Operator in late September 2024. 

The Waroona project is located 120 kilometres south of Perth. Its first stage will have a 120-megawatt (MW) solar farm and an 80MW/360 megawatt-hours battery energy storage system.