9 December 2024 – Brisbane, Australia – QPM Energy Limited is pleased to announce it has entered into an operating agreement with Carbon Logica Pty Ltd (CL) to utilise the Moranbah Power Station (MPS). This acquisition represents a major milestone for QPM in optimising its operational costs and expanding its renewable energy portfolio.
Key Highlights:
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QPM gains operational control and electricity dispatch rights over the 12.8MW Moranbah Power Station.
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Expected immediate reduction in field electricity costs of over $500,000 per month (~5% of monthly operating costs).
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Additional revenue generation through excess electricity dispatch to the grid.
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Strategic use of waste coal mine gas as a fuel source for the power station.
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MPS acquisition aligns with QPM's vision of developing a significant electricity generation portfolio in Moranbah.
Operational Benefits: The Moranbah Power Station, consisting of eight 1.6MW gas engines with a total capacity of 12.8MW, is co-located with the Moranbah Gas Project's gas gathering network. QPM will now manage the station's operations, gaining the flexibility to:
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Supply its energy requirements directly, reducing reliance on third-party electricity contracts.
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Export up to 12MW of excess electricity to the National Electricity Market (NEM), generating additional revenue.
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Optimise energy generation by leveraging low and negative pricing periods in the NEM spot market.
Comments from QPM's Chief Executive Officer: David Wrench stated:
“The Transaction associated with the Moranbah Power Station delivers us immediate operating cost savings and additional electricity revenue. We are pleased to have partnered with Carbon Logica and look forward to expanding our carbon abatement projects. QPM continues to make great progress in delivering on the potential of the Moranbah Gas Project. The MPS acquisition is a significant stepping stone towards our stated aim of developing a significant portfolio of electricity generation assets in Moranbah.”
Carbon Logica Partnership and Funding: Under the agreement, Carbon Logica will acquire the MPS from Sustainable Energy Infrastructure (SEI) and lease it to QPM over a four-year term. Key terms include:
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Payments totaling approximately $10.5 million over four years, after which ownership of the MPS will transfer to QPM.
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QPM assumes responsibility for operations and maintenance while benefiting from all electricity generation.
Completion Timeline: The transaction is expected to close by 31 December 2024, pending satisfaction of conditions, including the execution of a lease over the MPS site.
About us:
About QPM Energy Limited:
QPM Energy Limited (ASX: QPM) is a diversified energy company committed to innovative and sustainable solutions in energy production and management. By leveraging its expertise, QPM is driving efficiency and contributing to carbon abatement in the resources sector.
Contact details:
Jane Morgan
Investor and Media Relations [email protected]