QPM Energy announces strategic power station agreement

QPM Energy (ASX:QPM) has entered an agreement with Carbon Logica for the Moranbah Power Station acquisition from Sustainable Energy Infrastructure. This deal grants QPM operational control and electricity dispatch rights, with an option to purchase the power station. The arrangement is expected to lower electricity costs by over $500,000 monthly, roughly 5% of their operating costs. QPM plans to dispatch excess electricity to the grid and use waste coal mine gas as fuel.

QPM Energy's strategic electricity generation expansion

QPM Energy has secured an agreement with Carbon Logica, acquiring operating rights for the Moranbah Power Station from Sustainable Energy Infrastructure. This move will reduce electricity costs and increase revenue through excess electricity dispatch to the grid. The Moranbah Power Station features eight 1.6MW gas engines, with QPM managing operations and gaining an option to purchase after four years. This partnership aligns with QPM's goals to expand its electricity generation portfolio in Moranbah. The transaction completion is expected by December 31, 2024.

Executive insights on the QPM Energy and Carbon Logica deal

The transaction is expected to significantly reduce QPM's electricity costs by over $500,000 monthly, equating to approximately 5% of their operating costs. Additionally, it will allow QPM to increase revenue by dispatching excess electricity to the grid and utilizing waste coal mine gas as a fuel source.