The Queensland Government is investing in Kestrel Coal Resources’ coal mine waste gas-to-electricity project as part of the $520 million Low Emissions Investment Partnerships (LEIP) program.
The power project will expand the underground mine’s drainage system to capture more fugitive gas, preventing it from being released into the atmosphere.
Once complete, the project is expected to cut the mine’s emissions by more than one million tonnes over eight years.
The 30MW power station will be built at the Kestrel mine, north of Emerald, and will generate enough electricity to power more than 40,000 homes.
Kestrel Coal Resources is the second partner in the Queensland Government’s LEIP program, which aims to bring forward private sector investment to fast-track emissions reduction in Queensland’s highest emitting facilities.
The project is expected to create about 160 additional jobs on top of the existing 700-strong mine workforce, ahead of full operations in 2026.
Queensland Deputy Premier, Treasurer and Minister for Trade and Investment, Cameron Dick, said that Queensland’s metallurgical coal mining industry helps forge the steel that is necessary to build renewable technologies and achieve a net zero transformation.
“The LEIP program is accelerating opportunities to drive down emissions, while supporting Queensland’s resources industry,” Mr Dick said.
“Kestrel’s project will mitigate emissions being released into the atmosphere using proven abatement technologies.
“Importantly, we’re protecting jobs in regional Queensland and supporting an industry that is crucial to our renewable energy future.”
Kestrel Coal Resources’ CEO, Shane Hansen, said that Kestrel has focussed its resources on targeting substantive and innovative emissions reduction projects.
“This funding is a key enabler of our decarbonisation strategy and we welcome the partnership with Queensland Treasury and the LEIP program.
“The project will help support the future of our workforce as we continue to sustainably supply the steelmaking industry.”
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