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QPM Energy (ASX:QPM) has this week received the credit approval it’s been waiting for for a loan facility from the Australian government’s financier, Northern Australia Infrastructure Facility (NAIF), for up to $72 million to fund construction of the 112MW Isaac Power Station (IPS) in Queensland.
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The overall IPS project finance facility will be provided by NAIF and Macquarie Bank, with Macquarie’s existing master lease agreement (MLA) to be restructured into a project loan upon completion, CEO David Wrench said.
In October CY25, QPM entered into a $113.7M MLA with Macquarie to fund the purchase and delivery costs of two 56MW aeroderivative gas turbines from GE Vernova.
Macquarie is finalising credit approval for the restructure of the existing MLA into the finance facility. All parties are progressing facility documentation.
“We are delighted to receive this financial support from the Northern Australia Infrastructure Facility. The terms of the NAIF financing underpin the overall finance facility and enhance the economics of the IPS.” Mr Wrench said.
“The Australian government has recognised the need for additional gas-fired generation to support the energy transition, and the NAIF approval is strong validation.”
The NAIF loan will be provided through the state of Queensland and is subject to Queensland government approval, along with execution of documentation and financing conditions being met.
The IPS is on track to be the first major gas-fired power station built in Queensland for more than 15 years, with a target commercial operation date in second half CY27.
The IPS will provide critical support to the Queensland grid throughout the energy transition, providing reliable, long-duration generation every day for 30-plus years, underpinned by QPM’s independently certified 1,016 petajoules of 2P reserves and 2C gas resources.
The 2025 Queensland government Energy Roadmap states “the need for new gas capacity is universal across all market outlooks to de-risk the energy system as it transitions over time” and calls for an increase in gas-fired generation from 3.5GW to 6.1 to 8.3GW by 2035.
“As an emerging, vertically integrated utility company, QPM is well positioned to meet the needs of Queensland’s energy system,” Mr Wrench said.
The NAIF provides concessional loans for the development of infrastructure projects in northern Australia and the Australian Indian Ocean Territories.
QPM closed at 1.5¢ yesterday.
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