A new waste gas generation project at the Kestrel coal mine north of Emerald is set to significantly reduce mining emissions in Central Queensland.
The Queensland Government has announced an investment from its $520 million Low Emissions Investment Partnerships (LEIP) program to support the development of the 30 megawatt (MW) power station.
The project will involve expanding the underground mine’s drainage system to capture more fugitive methane gas, preventing over one million tonnes of carbon dioxide equivalent emissions from being released into the atmosphere over eight years.
The captured gas will then fuel the on-site power plant, generating enough electricity to power more than 40,000 homes.
Queensland’s Deputy Premier, Treasurer and Minister for Trade and Investment Cameron Dick said Queensland’s metallurgical coal mining industry provided 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,” he 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.”
For Kestrel Coal Resources, the operator of the Kestrel mine, the LEIP funding represents a major boost to its decarbonisation efforts.
The company is the second partner in the Queensland Government’s LEIP program, aimed at accelerating emission reduction projects across the state.
In addition to its environmental benefits, the gas-to-power project is expected to create around 160 new jobs at the mine site during construction.
This is on top of the existing 700-strong workforce, with full operations scheduled to commence in 2026.
The Kestrel project highlights the state government’s approach of reinvesting coal royalties into sustainable initiatives within mining communities.
Officials are promoting it as an example of supporting Central Queensland’s transition towards a lower-emissions future while continuing to leverage the region’s resources sector.
Subscribe to Energy Today for the latest project and industry news.