Waroona Energy Inc. announced the Company has commenced a study to assess a Dual Fuel Hydrogen Peaking Plant ("Peaking Plant") at the Company's Waroona Renewable Energy Project (the "Project") in Western Australia. Dual fuel peaking plants are a mature technology and have emerged as an early consumer of green hydrogen. The Company has commenced a Study to assess a Peaking Plant at the Project with a minimum capacity of 100 MegaWatts (MW) Peaking Plants are a mature technology and are used to supply power in the market and operate during periods of high demand (and pricing) for electricity Peaking Plants are a first mover in the consumption of hydrogen as a fuel, given existing market mechanisms already in place and planned in Western Australia (WA).

The WA Government has announced plans to legislate that 1% of the South-West's electricity generation will come from green hydrogen EnergyAustralia is currently constructing the Tallawarra B Power Station 314MW dual fuel hydrogen power plant in New South Wales, with operations expected to commence later this year. Construction at Tallawarra B Power Station commenced in 2021 at an estimated capex of $300 million. The project received $83 million in Federal and State government funding.

The Peaking Plant opportunity is available to the Company due to its location and access to existing infrastructure, including an existing connection to the WA electricity grid This Study will be completed with the assistance of Frontier Energy (FHE.ASX), with which the Company has a Collaboration Agreement regarding future development opportunities and shared IP across the renewable energy sector. Frontier recently completed a Definitive Feasibility Study on the Bristol Springs. Hydrogen Project, which is one of the lowest cost hydrogen projects in Australia and adjacent to Waroona's site.

The Company is finalising the Lead Engineer to complete the Study; this appointment is expected later this month. Waroona Energy has commenced a Study to assess a minimum 100 MW dual fuel peaking power facility at the Project. The Study will be completed with the assistance of Frontier Energy under the existing Collaboration Agreement between the companies.

Frontier released a Definitive Feasibility Study on their Bristol Springs Hydrogen Project in March 2023, which highlighted the project's potential to be one of the lowest cost hydrogen projects in Australia. The Peaking Plant will be fuelled by natural gas sourced from suppliers and transported via the Dampier to Bunbury Natural Gas Pipeline (DBNGP), whilst renewable hydrogen to be produced from the solar energy generated at the Project or Frontier's Bristol Springs Renewable Energy Project. The Company has selected a number of highly experience engineering groups to tender for project design.

This scope includes: Outline the selected options for the different reference dual fuel Power Plant, engineering, permitting, and emissions analysis/pathways; Detail the estimation of the capital and annual fixed costs for the reference technologies; Provide the expected system services and net energy market revenues for the reference dual- fuel power plant; and Provide for an overview of the Capacity Market and explains how the Reserve Capacity Price is expected to be used. This Study is expected to be completed in late 2023. Dual fuel peaking plants are designed to balance the fluctuating power requirement in the electricity network and operate during periods of high-level demand for electricity or shortfalls of electricity supply.

Peaking Plants are a mature technology, with multiple operations already in production throughout the world including Western Australia. Examples include the Wagerup dual fuel (gas and distillate) peaking plant, located 5km from the Project which has a capacity of 380MW. This peaking plant has been operational since 2007.

The Tallawarra B 316 MW dual fuel (hydrogen and natural gas) in New South Wales is under construction and due to commence power generation later this year . Peaking Plants provide important balancing services as the world switches towards renewable energy solutions where weather conditions, i.e., lack of wind or sun, prevent output. Peaking plants address this imbalance and reduce stress on the electricity grid, by providing power stability to potentially avoid blackouts and maintain the security of electricity supply.

EnergyAustralia is developing the Tallawarra B Power Station, a 316 MW dual fuel (hydrogen and natural gas) peaking plant in New South Wales, which will be Australia's first net zero emissions gas and hydrogen capable power station. The power plant will operate with high operational flexibility as a "Peaking plant"--firing up rapidly when needed to stabilize the power grid during demand peaks and it will utilize partial volumes of hydrogen as fuel to decrease its carbon emissions footprint. Tallawarra B will be the first project to use GE's advanced 9F.05 gas turbine in Asia.

GE's gas turbine portfolio has the capability to burn hydrogen levels from 5% (by volume) up to 100%. The project had a reported estimated cost of approximately AUD 300 million and started construction in 2022 with first power production expected in late 2023.