Frontier Energy has appointed Western Australian renewable energy contractor Monford Group as the fixed-price engineering, procurement and construction (EPC) contractor for the 132MWdc stage one of its Waroona Renewable Energy Project.
The deal also sees Monford agreeing to take AU$5 million (US$3.5 million) of its contract value in ASX-listed developer Frontier’s shares.
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The appointment follows the completion of an Early Contractor Involvement process that allowed both parties to refine the scope and design of the 132MWdc solar and 81.5MW/562MWh battery energy storage facility before formalising the contract.
Monford has commenced detailed design and mobilisation preparations under an interim agreement, with full site mobilisation scheduled for September 2026. The EPC scope extends through commissioning and delivery of a fully grid-connected solar-plus-storage facility, with first generation targeted in the second half of 2028.
In lieu of AU$5 million in cash, Monford has been granted an option to acquire 25 million ordinary shares in Frontier at an exercise price of zero. Frontier executive chairman Jamie Cullen said the arrangement reflected strong alignment of interests.
“The agreement for Monford to receive AU$5 million of the contract value in Frontier equity provides strong alignment of interests and is a positive endorsement of the quality and long-term potential of the Waroona Project,” he said.
Monford CEO Ciaran Shannon said the project reinforced the company’s position as a leading contractor in the Australian renewable energy sector.
“Our participation as a shareholder aligns us with the long-term success of the project and demonstrates our confidence in Frontier’s vision and growth strategy,” Shannon said.
As noted by Frontier Energy in the announcement, Monford’s prior 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) and similar in configuration to Waroona stage one, was particularly relevant to the appointment.
A fully funded project ready to build
The EPC appointment follows Frontier receiving credit-approved commitments for project finance debt facilities of up to AU$280 million from Natixis CIB and Sumitomo Mitsui Banking Corporation, announced on 17 July.
The package includes a construction and term facility of up to AU$250 million, a bank guarantee facility of up to AU$13 million, and a debt service reserve facility of up to AU$17 million, all of which qualify under the Green Loan Principles.
Combined with the AU$110 million conditional equity placement secured in June 2026, which received shareholder approval on 10 July, the project is now expected to be fully funded through construction and commissioning.
Settlement of the equity placement, at AU$0.20 per share across 550 million new shares, was scheduled for 21 July 2026.
In parallel with Monford’s early works, Frontier has progressed Western Power tendering for interconnection works, commenced substation EPC activities with Global Power Services, and placed long-lead orders for the main transformer and substation equipment.
The Waroona project has followed a long development path. Frontier assembled the site through the acquisition of Waroona Energy in late 2023, forming a combined 335MW solar portfolio.
As previously reported, the project was temporarily halted in October 2024 after Frontier failed to secure Reserve Capacity Credits from AEMO, which had been expected to underpin up to AU$27 million in annual revenue during the project’s first five years, requiring a restructure of the project’s financing and revenue assumptions.
The solar capacity subsequently grew from 120MW to 132MW through the adoption of higher-efficiency 660W modules, up from 610W. At the same time, the battery storage system was expanded to 562 MWh to meet a minimum 6-hour BESS requirement under Western Australia’s reserve capacity framework.
Frontier has outlined a multi-stage expansion at Waroona to approximately 1GW of solar generation and 660MW of battery storage by 2031, with stage two, which already holds development approval at approximately 120MW solar and 80MW of storage, expected to advance its definitive feasibility study during 2026 using part of the AU$110 million equity proceeds.
The site’s position 0.5km from the existing Landwehr Terminal substation removes the need for major new transmission infrastructure to support the multi-stage buildout.
