Kestrel Mine - Coal Mine Waste Gas Powerstation

Kestrel Mine - Coal Mine Waste Gas Powerstation is a displacement electricity production project located at the Kestrel Coal Mine, approximately 50km northeast of Emerald in the Bowen Basin of Central Queensland. Registered in December 2023, the project operates within the mining lease of an active underground metallurgical coal operation. The surrounding Central Highlands region is characterized by a mix of heavy industrial mining, dryland cropping, and cattle grazing.

The project operates under the Coal Mine Waste Gas methodology. This involves capturing fugitive methane emissions, specifically from the mine's drainage system, that would otherwise be vented into the atmosphere. Instead of venting, the gas is combusted in a 30MW power station to generate electricity. This process generates carbon credits by converting the potent methane into less harmful carbon dioxide and by displacing the need for electricity from the grid, which is typically supplied by more carbon-intensive fossil fuel sources.

Environmentally, the region experiences a sub-tropical to semi-arid climate with summer-dominant rainfall averaging around 600mm annually. The landscape is dominated by fertile, black cracking clay soils (Vertosols), which are typical of the Bowen Basin and support the region's agricultural productivity alongside its mineral wealth.

A notable feature of this project is its scale and financial backing. It is a key component of Kestrel Coal’s decarbonisation strategy and has received support from the Queensland Government’s Low Emissions Investment Partnerships (LEIP) program. The 30MW facility, developed in partnership with Enernet Global, is designed to generate enough electricity to power the equivalent of 40,000 homes and is expected to abate over one million tonnes of CO2 equivalent over its lifespan.