Kestrel Mine - Coal Mine Waste Gas Powerstation

Kestrel Mine - Coal Mine Waste Gas Powerstation is an industrial fugitives project located at the Kestrel Mine, approximately 40 to 50 kilometres northeast of Emerald in Central Queensland. It was registered in December 2023. While the exact project area size is unknown, it operates within the footprint of the existing underground metallurgical coal mine. The Emerald and Central Highlands region is well known for extensive coal mining operations alongside significant agricultural land uses, including cattle grazing and irrigated cropping.

Coal mine waste gas projects involve capturing and destroying the methane component of coal mine waste gas. Under the Carbon Credits (Carbon Farming Initiative-Coal Mine Waste Gas) Methodology Determination 2015, projects earn Australian Carbon Credit Units (ACCUs) by either flaring the gas or using displacement electricity production devices. This project involves installing and operating a 30-megawatt power station to combust the captured methane to generate electricity. This process displaces carbon-intensive grid electricity while destroying methane, which is a highly potent greenhouse gas.

The environment around the Kestrel Mine is considered sub-tropical to semi-arid, experiencing an average annual rainfall of approximately 580 to 600 mm, which predominantly falls during the summer wet season. The local soil types commonly feature deep cracking clays, alluvial soils, and areas of sandy loam overlying Tertiary basalt flows typical of the Bowen Basin.

This initiative is backed by the Queensland Government’s Low Emissions Investment Partnerships (LEIP) program, and is aimed at reducing the mine's emissions by more than one million tonnes of carbon dioxide equivalent over eight years. The power station is expected to create around 160 additional jobs during its development and will generate enough electricity to power roughly 40,000 homes. In May 2026, the participant name on the registry was varied to include Enernet Kestrel Pty Ltd alongside Kestrel Coal Pty Limited, reflecting a corporate partnership to deliver and operate the gas-to-electricity infrastructure.