What’s happening?
QPM Energy Limited (ASX:QPM) has received approval from the Northern Australia Infrastructure Facility (NAIF) for its Isaac Power Station (IPS) to proceed to the Due Diligence phase for potential debt financing. The 112MW gas-fired plant is located in central Queensland and forms Stage 1 of QPM’s newly launched Isaac Energy Hub (IEH).
The IEH is a strategic development to support Queensland’s shift to a low-carbon electricity network. The IPS is expected to be commissioned by mid-2027 and will be co-located with QPM’s existing Moranbah Gas Processing and Compression Facility.
Why it matters
The IPS is designed to provide fast-start, dispatchable generation to firm renewable energy and stabilise the grid. The development is aligned with both Queensland’s five-year energy roadmap and the Federal Government’s Future Gas Strategy. These policies highlight the critical role of gas-fired generation during the national energy transition.
QPM Energy’s CEO David Wrench said the project reflects the company’s strategy to grow into a scalable and reliable utility provider. “It’s clear that flexible, gas fired generation will be critical to help firm the grid as part of the energy transition,” said Mr Wrench.
“The development of the Isaac Power Station is a major step forward in QPM’s strategy to build a scalable and reliable utility Company.
With gas turbines secured, substantial gas reserves and low-cost production, and co-located infrastructure, QPM Energy is well positioned to fast track the delivery of reliable, dispatchable energy generation supply to the market with strong long-term margins.
The development of the Isaac Power Station will support Queensland’s energy transition, meeting the State Government’s call for more gas fired generation.”
Local Impact
The Isaac Power Station will add to regional energy security while capitalising on QPM’s 435PJ of 2P gas reserves. Backed by a well-supported capital raise, the company has procured long lead items, including two GE Vernova LM6000 55.8MW aeroderivative turbines under a fixed-price contract. The project will share infrastructure with QPM’s Moranbah operations, reducing cost and improving efficiency.
By the numbers:
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112MW gas-fired capacity at Isaac Power Station
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$71 million average annual revenue forecast over 30 years
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$49 million operating margin projected (real basis)
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$196 million capital cost excluding contingency
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435PJ in 2P gas reserves to supply the plant
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284MW total dispatchable generation post-IPS
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500MW is QPM’s target energy portfolio
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Mid-2027 commissioning target
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2 GE Vernova turbines secured under fixed-price contract
Zoom In
A completed Feasibility Study shows the IPS will operate with a 10-hour daily dispatch profile during peak and shoulder periods. RBC Capital Markets has been appointed as financial adviser for project funding. The IPS is one of the few new gas-fired projects progressing on the east coast.
Zoom Out
As Stage 1 of the Isaac Energy Hub, the IPS signals QPM’s broader commitment to supporting Queensland’s energy future. The project leverages existing gas infrastructure and aligns with government calls for more firming capacity to balance renewable energy.
What to look for next
QPM will continue detailed assessment with NAIF and additional financiers. A full funding package is expected by Q4 2025, with the power station scheduled to be operational by mid-2027.
