QPM Energy Unveils Isaac Energy Hub, Eyes December 2025 Investment Decision

Isaac Energy Hub Launch and Strategic Progress

QPM Energy Limited has taken a significant step forward in Queensland’s energy transition with the launch of its Isaac Energy Hub (IEH). Central to this initiative is the Isaac Power Station (IPS), a 112MW gas-fired generation facility designed to provide flexible electricity generation combined with long-duration energy storage. The company recently completed a feasibility study for IPS, revealing attractive financial projections that underpin its development strategy.

Crucially, QPM has secured two 55.8MW aeroderivative gas turbines from GE Vernova under a fixed-price contract. This procurement is a strategic move to de-risk the project timeline, especially given the current industry-wide turbine lead times stretching between five to seven years. The company is targeting a final investment decision (FID) in the December 2025 quarter, aiming for commissioning and operation by mid-2027.

Townsville Power Station Overhaul and Operational Resilience

During the quarter, QPM completed a major overhaul of its Townsville Power Station (TPS), a critical asset in its generation portfolio. The overhaul, finalized in July, has extended the operational life of the gas turbine by enabling at least 1,250 additional starts before the next major maintenance is required. Early commissioning results are promising, with the turbine successfully operating at full load and generating over 5,300MWh across multiple starts.

This operational milestone allowed QPM to hand over dispatch control to the company under a new agreement with Ratch Australia Corporation, alongside the activation of a new gas transportation and storage agreement with the North Queensland Gas Pipeline (NQGP). These agreements are expected to enhance QPM’s cost structure and financial performance going forward.

Gas Production and Financial Position

Gas production was deliberately managed lower during the quarter to accommodate the TPS overhaul, with a gradual ramp-up towards quarter-end. This strategy included storing gas volumes in the NQGP, positioning QPM well for the station’s return to service. Despite the temporary reduction in production, the Moranbah Power Station (MPS) increased electricity generation, partially offsetting revenue impacts.

Revenue from combined gas and electricity sales totaled $11.6 million for the quarter, down from $20.6 million in the prior period due to the TPS outage. On the financing front, QPM successfully completed a strongly supported share placement and purchase plan, boosting its cash and cash equivalents to $20.2 million. This capital injection supports ongoing procurement, regulatory approvals, and project development activities.

TECH Project and Government Support

Beyond power generation, QPM advanced its TECH Project, securing an $8 million grant from the Queensland State Government, complementing a matching federal grant. This funding enables the company to progress feasibility work and attract potential partners amid evolving market sentiment for nickel. Testwork on high acid concentration leach processes commenced, aiming to reduce capital and operating costs by minimizing water usage in processing.

Looking ahead, QPM’s focus remains on finalising grid connection agreements, securing key regulatory and environmental approvals, and completing detailed design and procurement for the Isaac Power Station. These steps are critical to meeting the targeted FID and delivering on the company’s vision for a flexible, low-emission energy future in Queensland.