What’s happening?
QPM Energy has secured credit approval for a loan facility of up to $72 million from the Northern Australia Infrastructure Facility.
The approval marks a key step in financing the 112MW Isaac Power Station.
QPM said the NAIF facility is expected to be a cornerstone of the broader project finance package.
That package is expected to sit alongside Macquarie Bank, with QPM also planning to restructure its existing Master Lease Agreement into a project loan.
The NAIF loan will be provided through the State of Queensland on behalf of NAIF.
The approval still depends on Queensland Government approval, final documents and standard financing conditions.
QPM said the milestone moves the project closer to construction and shows strong government and institutional backing.
Why it matters?
The approval strengthens the financing structure behind the Isaac Power Station and improves the project’s economics.
QPM said the project is expected to become an important part of Queensland’s future energy mix.
Chief executive David Wrench said the approval was a strong sign of support for the project.
“We are delighted to receive this financial support from the Northern Australia Infrastructure Facility,” Mr Wrench said.
“The terms of the NAIF financing underpin the overall Project Finance Facility and enhance the economics of the IPS.”
“The Australian Government has recognised the need for additional gas fired generation to support the energy transition and the NAIF approval is strong validation for the IPS.”
QPM said it is continuing to work with Macquarie to finalise credit approval for restructuring the existing MLA into the wider project finance facility.
RBC Capital Markets is acting as financial adviser, while 1843 Capital is supporting principal-side financing execution.
Local Impact
The project would add new gas-fired generation capacity to the Queensland grid during the energy transition.
QPM said the power station is designed to provide reliable, long-duration energy supply every day for more than 30 years.
That gives the Isaac Power Station a direct role in supporting future grid stability in Queensland.
By the numbers
- The proposed NAIF facility is worth up to $72 million, making it a major part of the project’s funding plan.
- The Isaac Power Station is planned as a 112MW project, giving it a significant role in future Queensland generation capacity.
- QPM’s existing $113.7 million Master Lease Agreement is intended to be restructured into a project loan on completion.
- The project is backed by 1,016PJ of independently certified 2P Reserves and 2C Resources, referenced in QPM’s 10 March 2026 ASX announcement.
- Queensland’s 2025 Energy Roadmap calls for gas-fired generation to rise from 3.5GW to between 6.1GW and 8.3GW by 2035.
Zoom In
QPM said the Isaac Power Station is on track to be the first major gas-fired power station built in Queensland in more than 15 years.
The project has a target commercial operation date in the second half of 2027.
The borrower under the NAIF facility will be Isaac Power Station No1 Pty Ltd, a wholly owned QPM subsidiary.
The lender will be the State of Queensland, acting on behalf of NAIF.
The proposed loan term is 10 years after construction completion.
Zoom Out
The project sits within a broader push to increase firming capacity across Queensland’s energy system.
QPM pointed to the Queensland Government’s 2025 Energy Roadmap, which states that “the need for new gas capacity is universal across all market outlooks to de-risk the energy system as it transitions over time”.
That roadmap identifies a structural need for more gas-fired capacity to support grid stability through the transition.
QPM said its vertically integrated position leaves it well placed to help meet that demand.
What To Look For Next?
The next stage will depend on Queensland Government approval, final documentation and the completion of standard financing conditions.
Progress on Macquarie’s credit approval and the MLA restructure will also shape how quickly the broader project finance facility is locked in
