Construction Accelerates at Major Solar-Battery Hybrid Project in Western Australia

Frontier Energy Secures $280 Million Loan for Waroona Renewable Energy Project

Perth’s clean energy developer, Frontier Energy, revealed on Monday that it has secured a syndicated loan agreement worth up to $A280 million to fully finance the first stage of its Waroona Renewable Energy Project located in Western Australia.

The company announced the execution of a syndicated facility agreement for project finance debt facilities amounting to $A280 million, backed by an international lending consortium led by prominent financial institutions Natixis CIB and Sumitomo Mitsui Banking Corporation.

Funding Details and Expectations

This debt facility received credit approval earlier in the year and includes a construction facility of around $250 million. Frontier characterised it as a comprehensive funding solution that will facilitate the prompt development of the first stage of Waroona.

While the financial closure of this agreement hinges on certain conditions, Frontier anticipates reaching a decision in the coming weeks, with the initial fund drawdown expected in the first quarter of 2027.

Upon financial close, these new debt facilities, along with the proceeds from a $110 million equity placement completed in June, are anticipated to fully support the initial phase of the Waroona Renewable Energy Project until its first generation in 2028.

Project Specifications

The debt package comprises a construction and term facility estimated at approximately $A250 million, a bank guarantee of about $A13 million, and a debt service reserve facility of roughly $A17 million.

Situated 120 kilometres south of Perth, the Waroona project will be a hybrid system featuring a 132-megawatt (MW) solar plant alongside an 81.5 MW battery energy storage system (BESS).

Jamie Cullen, the executive chairman of Frontier, stated, “The execution of the SFA marks a significant milestone for Frontier, as site works on stage one are intensifying.” He also expressed gratitude to Azure Capital, the company’s debt finance advisor, and the lending consortium for their commitment to funding this major renewable energy initiative in Western Australia.

With the SFA now in place and financial closure expected in November, site activities are poised to escalate as the company continues to explore prospects for future expansions.

This latest financial backing follows Frontier’s announcement two months ago that it had secured all essential contracts to commence work on the Waroona hybrid project, anticipated to be the largest solar and battery hybrid system connected to Western Australia’s main grid.