Frontier Energy to acquire Waroona Energy and create a renewable energy giant
SYDNEY, AUSTRALIA: Frontier Energy Limited, the Australian renewable energy company, has announced that it has signed a letter of intent to acquire all the shares of Waroona Energy Inc., the Canadian renewable energy company, that it does not already own. Frontier currently holds 20% of Waroona.
The acquisition aims to create a large-scale Australian renewable energy company, with shovel-ready solar generation of 355MW and the potential to expand to more than 1GW, based on adjoining freehold land ownership and grid connections that have been secured by the two companies in South West WA.
The combined company will also provide a unique and accelerated turnkey solution for the development and consumption of green hydrogen, via Waroona’s proposed 120MW dual fuel peaking plant.
The peaking plant will use hydrogen as a fuel source, reducing greenhouse gas emissions and enhancing grid stability.
Under the acquisition plan, Waroona shareholders will receive one new Frontier share for every 4.27 Waroona shares held. Upon completion, Frontier shareholders will hold approximately 69% of the merged group and Waroona shareholders will hold approximately 31%.
Frontier Executive Chairman, Grant Davey, commented: “Frontier shareholders will realise significant value from this transaction, which creates the largest integrated, grid connected, utility-scale renewable energy project in Western Australia. The transaction brings an additional grid connection, increased freehold land, and a strengthened balance sheet and cash balance.
There are significant synergies in combining our solar footprints to create a 355MW solar project with development approvals in place. Importantly, Waroona is already advanced in its study of a hydrogen-fuelled dual fuel peaking plant, which can provide an initial market for Frontier’s green hydrogen production.
Combining Frontier and Waroona will set the scene for a final investment decision in 2024 and provide the opportunity to develop a larger project in the fastest and most capital efficient manner, while also creating the critical mass required to secure financing.”
Permira Advisers LLP has acquired Ergomed Plc at approximately £703.1 million
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