What’s happening?
QPM Energy Limited (ASX:QPM) has signed a A$113.7 million Master Lease Agreement (MLA) with Macquarie Bank Limited. This milestone agreement supports the development of the 112 MW Isaac Power Station (IPS), located in Moranbah, Central Queensland.
The lease is being provided through Macquarie’s Specialised and Asset Finance division and fully covers the acquisition, transport, and delivery of two LM6000 gas turbines from GE Vernova. It also includes five years of initial operational support.
The bespoke lease structure, with a term of up to 84 months, spans the full construction and early operation phases of the Isaac Power Station. It has been secured on market-competitive terms, which are lower than those originally outlined in QPM’s feasibility study.
QPM Energy plans to commission the station by mid-2027. Following the Final Investment Decision (FID), the lease facility will be refinanced into a larger project finance facility. QPM, together with its financial advisor RBC Capital Markets, is in continued discussions with strategic investors and the Northern Australia Infrastructure Facility (NAIF) to support this refinancing.
Why it matters
The Isaac Power Station is forecast to be the lowest-cost gas-fired power generator in Queensland, and the lease agreement secures a critical part of its development. By locking in delivery of the gas turbines, QPM has significantly de-risked the early stages of the project.
The agreement also strengthens the financial case for the project. As the cost of finance for the MLA is lower than QPM’s original feasibility assumptions, the project is positioned to deliver stronger financial returns for shareholders.
Local impact
The project’s location in Moranbah, Central Queensland, positions it as a key player in the region’s future energy supply. As part of the broader Isaac Energy Hub, the power station is designed to provide firming capacity and reliability. This ensures stability in Queensland’s electricity grid as the state continues to transition to renewable energy sources.
QPM Energy is actively progressing multiple workstreams ahead of the FID. These include:
-
Detailed engineering and design
-
Tendering of major contracts
-
Environmental and planning approvals
-
Grid connection processes with Powerlink Queensland
By the numbers
-
The total lease facility secured by QPM Energy with Macquarie Bank is A$113.7 million, fully covering turbine acquisition and early operations.
-
The Isaac Power Station is planned to deliver 112 megawatts of firming and dispatchable power capacity to Queensland’s energy grid.
-
The lease agreement spans a term of up to 84 months, supporting both construction and the first years of operational activity.
Zoom In
The Isaac Power Station’s execution strategy takes a major step forward with this lease deal. It ensures the timely delivery of the gas turbines and provides five years of operational support—both critical to keeping the project on track and on budget.
QPM Energy CEO David Wrench said: “Securing the Macquarie Lease Agreement is another major milestone for QPM Energy and the Isaac Power Station. With 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.”
Zoom Out
This lease agreement demonstrates strong financial backing for Queensland’s next major gas-fired generator. It also reflects confidence from institutional players like Macquarie Bank in the long-term value and feasibility of gas-based firming projects, especially during the energy transition phase.
The Isaac Power Station is a core asset of QPM Energy’s strategy to support Queensland with firming and dispatchable generation as the energy system evolves.
What to look for next
QPM is expected to provide an update on the Final Investment Decision (FID) timeline and outcome. The company will also release details on the planned refinancing into a larger project finance facility.
Further announcements are anticipated on environmental, planning, and grid approvals. Updates on support or investment from NAIF and strategic partners are also expected. Progress on project milestones leading to the mid-2027 commissioning will be monitored.
