QPM Energy powers up in Moranbah

QPM Energy is adding the 12.8MW Moranbah Power Station to its electricity generation arsenal. The company, which already holds the Moranbah Gas Project, has entered into an operating agreement with Carbon Logica over the power plant. Carbon Logica will acquire the power plant from Sustainable Energy Infrastructure and lease it to QPM Energy, which will pay about $10.5 million over a four-year period. QPM will have full operating and electricity dispatch rights for the power station, and the option to acquire the plant at the conclusion of the operating agreement. “The transaction associated with the Moranbah Power Station delivers us immediate operating cost savings and additional electricity revenue," QPM Energy chief executive officer David Wrench said. "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." Related: QPM Energy locks in key pipeline and power plant deals QPM Energy expects to benefit from an immediate reduction in field electricity costs of more than $500,000 a month (about five per cent of monthly operating costs). The deal will also see it able to use increased quantities of waste coal mine gas as fuel for the power plant. The power station consists of eight 1.6MW reciprocating gas engines with a total generation capacity of 12.8MW. The Moranbah Gas Project gas gathering network is directly connected to the plant and supplies up to 3.2TJ/day when the power station is operating at full load. Under existing contracts, the Moranbah Gas Project buys about 3MW of electricity from SEI to power the gas field. QPM can elect to supply gas to the plant to reduce overall electricity costs. Following completion of the transaction, QPM Energy will have operational and dispatch control of the plant, including the capability to buy electricity directly from the grid at the National Electricity Market spot price. The company said this would give it the flexibility to buy electricity at low to negative pricing during the day and generate electricity for self-consumption and export at other times. Carbon Logica specialises in carbon abatement services to the mining industry, and recently developed Stage 1 of the Ironbark power station near Moranbah. QPM Energy, along with RATCH Australia Corporation, has also contracted for dispatch rights to 100 per cent of the capacity of the Townsville power plant’s 160MW gas turbine generation unit when existing arrangements expire. This agreement allows QPM Energy to supply gas to the power station and dispatch the electricity generated into the National Electricity Market. You may also like: https://industryqld.com.au/ironbark-brings-waste-gas-fuelled-power-plant-online/

QPM Energy powers up in Moranbah

Industry Queensland

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