Frontier Energy: Profitable Power Generation for the Energy Transition with CEO Sam Lee Mohan
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Frontier Energy (ASX: FHE; OTCQB: FRHYF) is on track to become a profitable Australian energy producer. As the world continues to grapple with the current energy transition and as high electricity prices are forecasted over the next decade, Frontier Energy aims to capitalize on these undeniable trends. Frontier’s strategy is to produce electricity from both solar energy and a peaking plant. The peaking plant will utilize both natural gas supplied via a pipeline and eventually green hydrogen. The green hydrogen will be produced onsite via electrolysis using Frontier Energy’s solar power during low-cost energy periods. The company has all key approvals, permits, and licenses in place to commence development on the project next year. The first cashflow is expected in 2025. Frontier Energy’s competitive advantage is its existing critical infrastructure, agreements, and permits. Having these in place saves the company at minimum five years of waiting and hundreds of millions of dollars in capex. Frontier Energy already has a connection to the electrical grid with capacity of 1.1GW, access to a nearby natural gas pipeline, agreement to purchase water from a nearby pipeline, and landholdings sufficient for +1GW of solar coverage. Listen to Frontier Energy CEO Sam Lee Mohan describe the company’s investment thesis in this MSE interview. 0:00 Introduction 1:34 Frontier Energy overview 4:33 Energy infrastructure projects implemented much quicker than mining projects 6:20 Profiting from the electrical “duck curve” 8:43 Peaking plant provides 24/7 baseload power & maximizes profits 10:06 Green hydrogen production 11:28 Readily available water saves hundreds of millions of capex 12:50 Peaking plant is internal offtake partner for green hydrogen 14:19 Three revenue streams 15:53 Expected revenue and valuation at a 15x P/E multiple 17:40 Expansion capability to 1.2GW (supplies electricity to 2.8mm homes) 18:53 Timeframe for construction 21:00 Permitted infrastructure projects are “more process rather than negotiation” 21:50 Treasury and upcoming catalysts https://frontierhe.com/ ASX:FHE / OTCQB: FRHYF Frontier Energy Presentation: https://www.miningstockeducation.com/wp-content/uploads/2023/10/20230919_FHE_Corporate-Presentation.pdf Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39 Frontier Energy is an MSE sponsor. Frontier Energy’s forward-looking statement found in its most recent corporate presentation applies to the content of this interview. The content found on MiningStockEducation.com is for informational purposes only and is not to be considered personal legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, SEC filings, current events, press releases and interviews but is not infallible. It may contain errors and MiningStockEducation.com offers no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com or our videos. We may hold equity positions in and/or be compensated by some of the companies featured on this site and therefore are biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.