Frontier Energy begins construction phase at Waroona after appointing Monford as EPC contractor

Frontier Energy has moved its Waroona Renewable Energy Project from development into construction preparation, appointing Western Australian contractor Monford Group on a fixed-price EPC basis for Stage One. The project pairs utility-scale solar with long-duration battery storage and is designed to connect into Western Australia's South West Interconnected System.

Frontier Energy Limited (ASX: FHE) has appointed Monford Group as the engineering, procurement and construction contractor for Stage One of its Waroona Renewable Energy Project in Western Australia. The appointment follows the completion of an early contractor involvement process and comes alongside Frontier's progress on project financing, procurement and grid-connection activities.

The Stage One project is planned as a 132 MWdc solar farm with an 81.5 MW battery energy storage system of approximately 562–565 MWh. Monford's EPC scope extends through construction, commissioning and delivery of a fully operational, grid-connected solar-and-battery facility, with first generation targeted for the second half of 2028.

Waroona project overview

The Waroona Renewable Energy Project is located in Western Australia's South West, approximately 120 kilometres south of Perth, 8 kilometres south-west of Waroona township and 5 kilometres east of Forrest Highway. Frontier controls about 830 hectares of freehold land for the wider development precinct.

The site is located close to the 330 kV Landwehr Electricity Terminal, providing a pathway for the project to export electricity into the South West Interconnected System, or SWIS—Western Australia's principal electricity network. Frontier says Landwehr connects to one of the highest-capacity transmission lines in the SWIS, an important factor for a project that has a longer-term expansion ambition beyond Stage One.

Monford secures the EPC role

Frontier announced Monford's appointment in July 2026. The Western Australian contractor will be responsible for delivering the Stage One solar farm and battery system under a fixed-price, lump-sum EPC contract. This delivery model is significant because it establishes a defined contract price for the agreed scope, helping Frontier manage construction-cost exposure, while leaving the detailed allocation of change, delay, force-majeure and performance risks to the EPC contract.

The appointment followed an Early Contractor Involvement process, during which Frontier and Monford refined the project's technical design, scope and construction planning before signing the full EPC agreement. Frontier has said the ECI process supported a better-defined scope, progressed design work and reduced execution risk before construction.

Monford's relevant delivery experience includes the Cunderdin hybrid project in Western Australia, comprising a 128 MWdc solar farm and a 55 MW, four-hour battery energy storage system. That experience with a comparable solar-and-battery project connected to the SWIS was a key consideration in its selection for Waroona.

EPC deal includes Frontier equity

A notable feature of the EPC arrangement is Monford's decision to accept part of its contract consideration in Frontier equity.

Monford agreed to reduce the cash amount payable under the EPC contract by A$5 million. In exchange, it received an option to acquire 25 million fully paid ordinary shares in Frontier at a zero exercise price.

The transaction does not mean the EPC contract is primarily share-funded. Rather, it is a partial consideration arrangement in which A$5 million of the otherwise cash-based contract value has been exchanged for Frontier equity exposure. For Frontier, the structure preserves a portion of construction cash while creating a direct financial alignment between the project owner and its EPC contractor.

Solar and storage configuration

Stage One is a hybrid solar and storage project rather than a standalone solar farm. The 132 MWdc solar array will be integrated with an 81.5 MW battery system holding approximately 562–565 MWh of energy.

At the stated battery power rating, the system has an energy-to-power ratio of roughly 6.9 hours: 565 MWh ÷ 81.5 MW ≈ 6.9 hours.

That calculation should be interpreted carefully. Project disclosures can use different DC and AC ratings, and usable operating duration depends on inverter configuration, dispatch strategy, battery degradation allowances and system operating limits. Frontier has also described the system in the context of Western Australia's capacity market requirements, where the larger battery design was intended to meet a minimum six-hour BESS requirement.

The DC-coupled design means the solar farm and battery are integrated on the direct-current side before electricity is converted for grid export. In practical terms, this can allow a proportion of solar generation to charge the battery directly, giving the operator more flexibility to shift generation into later periods when electricity demand, prices or grid-capacity value are higher.

Financing and construction readiness

Frontier has announced credit-approved project-finance commitments of up to A$280 million from Natixis CIB and Sumitomo Mitsui Banking Corporation. The proposed financing package includes:

• Up to A$250 million in construction and term debt
• A A$13 million bank-guarantee facility
• A A$17 million debt-service-reserve facility

The facilities are described as senior-secured, non-recourse project-finance funding, subject to standard conditions such as final long-form financing documents, completion of confirmatory due diligence, finalisation of key project contracts, completion of equity commitments and a final investment decision.

The debt package was intended to work alongside Frontier's A$110 million equity placement. Frontier stated that, together, the debt and equity funding were expected to fully fund Stage One through construction and commissioning.

Separately, Frontier has advanced key critical-path workstreams including detailed design, solar-panel, tracker, inverter and battery-procurement arrangements, substation works with Global Power Services, transformer and substation-equipment orders, and Western Power interconnection activities.

In September 2026, Frontier announced that mobilisation had commenced at Waroona, confirming that the project had entered its practical site-preparation and construction period.

Strategic location and expansion potential

Waroona's location is central to Frontier's investment case. The project sits near established electricity, gas, water and transport infrastructure, including Forrest Highway and the Landwehr terminal. Frontier also cites access to a substantial regional labour pool around Waroona, Mandurah, Bunbury and Collie.

The project is also relatively close to major industrial demand centres. Frontier identifies nearby alumina refining assets, including facilities associated with Alcoa and South32, as well as the Kwinana and Kemerton industrial zones. These industrial regions face growing pressure to decarbonise and could underpin demand for renewable electricity over time.

Stage One is only the first component of Frontier's broader development concept. The company has outlined an expansion ambition of up to 1 GW of solar generation and up to 660 MW of battery storage by 2031. Later stages remain subject to development approvals, grid access, market conditions, financing and future investment decisions; they should therefore be treated as pipeline potential rather than committed construction.

Key milestones to watch

The next project milestones will be important for Frontier, Monford and the wider WA renewable-energy sector:

• EPC delivery progress: Monford's ability to manage procurement, site works, construction interfaces and commissioning under the fixed-price contract.
• Grid connection: Completion of Western Power connection works and final operational integration into the SWIS.
• Long-lead equipment: Delivery and installation of the main transformer, substation infrastructure, battery equipment, inverters, trackers and solar modules.
• Financing close: Satisfaction of conditions attached to the Natixis and SMBC debt facilities and completion of the associated funding arrangements.
• First generation: Frontier's current target is the second half of 2028.
• Expansion-stage decisions: Progress on Stage Two and any further development towards Frontier's longer-term 1 GW solar and 660 MW battery ambition.

Waroona is a major example of the evolving Australian renewable-infrastructure model: a large solar asset paired with substantial storage, supported by a fixed-price EPC structure, project-finance debt and an expansion-ready landholding near high-capacity grid infrastructure. If delivered on schedule, Stage One will position Frontier as an owner of a meaningful solar-and-storage asset within Western Australia's SWIS market.

Published 15 September 2026 · Updated 14 September 2026