Australia’s Stanmore Resources has announced an agreement with the Queensland Government to construct a new 20MW gas-to-electricity power station at the South Walker Creek open-cut coal mine as part of the Low Emissions Investment Partnerships (LEIP) programme.
The project aims to lower future fugitive mine emissions by capturing coal seam gas at South Walker Creek and converting it into electricity to be reused on-site, providing a sustainable and long-term power source for the mine.
Upon successfully completing regulatory approval processes, the company intends to complete the construction of the project by 2027 and then implement coal seam gas drainage and electricity generation at a commercial scale for at least 15 years.
The LEIP funding will be released upon reaching project milestones until the project’s completion.
With the support of the Queensland Government, Stanmore plans to establish joint venture agreements for gas extraction, power plant construction and ongoing operations.
Stanmore Resources CEO and executive director Marcelo Matos said: “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.”
Deputy Premier, Treasurer and Minister for Trade and Investment, Cameron Dick, said: “Our Government is committed to our 75 by 35 emissions reduction target and to a strong future for the resources sector across Queensland.”
The Queensland Budget for 2023–24 introduced the LEIP programme, which aims to accelerate investment in initiatives aimed at cutting emissions in Queensland’s most polluting facilities. Decreasing emissions from safeguard mechanism facilities in the metallurgical coal sector is one of its priorities.
“The LEIP programme is investing in innovations that will reduce emissions that occur through the mining process that supplies the coal we need for steelmaking. 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,” Dick added.
