A new project will aim to reduce emissions by capturing coal seam methane and transforming it into electricity.
The Stanmore Resources project is the first to be funded through the Queensland Government’s $520 million Low Emissions Investment Partnerships (LEIP) program.
The project aims to capture future fugitive emissions at the South Walker Creek metallurgical coal mine near Nebo.
Underground coal mining already traps fugitive gas before coal extraction and Stanmore is now applying the same technology at an open-cut mine.
The project could pave the way for faster emissions reduction across the broader coal sector.
The project will operate for at least 15 years, and construction of a new 20MW coal seam gas-fired power station at the South Walker Creek mine is expected to be completed by 2027. The power station will offset South Walker Creek’s entire electricity requirements and employ 30 people during construction, on top of the mine’s existing workforce of 1,200.
The State Government’s LEIP investment demonstrates its strong commitment to a low-carbon mining sector.
Queensland Deputy Premier, Treasurer and Minister for Trade and Investment, Cameron Dick, said, “Our government is absolutely committed to our 75 by 35 emissions reduction target and to a strong future for the resources sector across Queensland.
“The LEIP program is investing in innovations that will reduce emissions that occur through the mining process that supplies the coal we need for steelmaking.”
Mr Dick said that Queensland’s high-quality metallurgical coal is a vital element in producing the world’s renewable energy infrastructure, such as wind turbines and electric vehicles.
“The application of proven technologies to capture and convert gas at South Walker Creek has the potential to accelerate Queensland’s decarbonisation.”
Stanmore Resources’ Chief Executive Officer and Executive Director, Marcelo Matos, said Stanmore is excited by this project and welcomes the support of the Queensland Government.
“The project will take methane from the coal seam and convert it into a long-term stable power solution to the mine whilst continuing to produce and deliver high-quality metallurgical coal to our customers.”
Featured image: Benno Putro/shutterstock.com
