The Queensland Government is investing in a new gas-to-electricity power project at the Kestrel coal mine as part of its $520 million Low Emissions Investment Partnerships (LEIP) program.
The project will expand the underground mine’s drainage system to capture more fugitive gas, preventing it from being released into the atmosphere. This has the potential to reduce carbon emissions by more than one million tonnes over eight years.
Kestrel Coal Resources chief executive officer Shane Hansen welcomed the investment.
“Kestrel has focused our resources on targeting substantive and innovative emissions reduction projects,” he said.
“This funding is a key enabler of our decarbonisation strategy, and we welcome the partnership with Queensland Treasury and the LEIP program.”
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.
“The project will help support the future of our workforce as we continue to sustainably supply the steelmaking industry,” Hansen said.
A 30-megawatt power station will built at the Kestrel mine, north of Emerald, and will generate enough electricity to power more than 40,000 homes.
Kestrel Coal is the second partner in the Queensland Government’s LEIP program.
“The LEIP program is accelerating opportunities to drive down emissions, while supporting Queensland’s resources industry,” Queensland Deputy Premier, Treasurer and Minister for Trade and Investment Cameron 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.”