QPM Energy Limited has finalized a Master Lease Agreement (MLA) worth A$113.7 million with Macquarie Bank Limited. This agreement represents a significant advancement in the development of the 112MW Isaac Power Station located in Moranbah, Central Queensland. The funding will facilitate the acquisition, transportation, and delivery of two LM6000 gas turbines from GE Vernova, along with five years of operational support.
The lease facility, issued through Macquarie’s Specialised and Asset Finance division, is designed to fully support the project’s financial needs. QPM aims to commission the Isaac Power Station by mid-2027. The bespoke lease structure offers a term of up to 84 months, covering both construction and initial operations, and has been secured on terms that are more favorable than earlier feasibility estimates. This reinforces the project’s viability and highlights its significance in Queensland’s energy landscape.
Financial Strategy and Future Plans
The lease facility will be refinanced into a larger project finance arrangement following the Final Investment Decision (FID). QPM and its financial advisor, RBC Capital Markets, are actively engaging with strategic investors and the Northern Australia Infrastructure Facility (NAIF) to secure additional funding.
The Isaac Power Station is projected to be the lowest-cost gas-fired power generator in Queensland. It is intended to provide essential firming capacity and reliability as the state transitions its energy system. QPM is advancing multiple workstreams in preparation for the FID, including detailed engineering and design, tendering for major contracts, obtaining environmental and planning approvals, and coordinating grid connection processes with Powerlink Queensland.
Leadership Commentary
David Wrench, CEO of QPM Energy, emphasized the importance of this agreement, stating, “Securing the Macquarie Lease Agreement is another major milestone for QPM Energy and the Isaac Power Station. With the delivery of the gas turbines now locked in, the Company is well positioned to deliver Queensland’s next major gas-fired power station on time and on budget. The cost of finance of the MLA is lower than our Feasibility Study estimates, enhancing the project’s capacity to generate robust financial returns for shareholders.”
QPM Energy Limited is dedicated to developing firming and dispatchable generation assets that support Queensland’s transition to renewable energy. The Isaac Power Station is a cornerstone of the broader Isaac Energy Hub in Moranbah, strategically positioned to provide reliable and lower-cost power to Queensland’s evolving energy mix.
