Stanmore Resources has reached an agreement with the Queensland government to construct a 20MW gas-to-electricity power plant at its South Walker Creek open-cut coal mine under the Low Emissions Investment Partnerships (LEIP) program. This initiative aims to reduce future fugitive mine emissions by capturing coal seam gas at the mine and converting it into electricity for on-site use, providing a sustainable power solution for the facility.
Following regulatory approvals, Stanmore plans to complete the construction by 2027 and implement coal seam gas drainage and electricity generation on a commercial scale for at least 15 years. The LEIP funding will be provided incrementally as project milestones are met until its completion.
With government backing, Stanmore intends to form joint venture agreements for gas extraction, power plant construction, and ongoing operations, ensuring long-term sustainability.
Marcelo Matos, CEO of Stanmore Resources, remarked, “The project will harness methane from the coal seam, transforming it into a reliable energy source for the mine while maintaining high-quality metallurgical coal production.”
Deputy Premier and Treasurer Cameron Dick emphasized the importance of this project, stating, “Our government is committed to achieving a 75% emissions reduction by 2035 while supporting the future of Queensland’s resources sector. The LEIP program is key to reducing emissions in industries like metallurgical coal, which is critical for producing renewable energy infrastructure such as wind turbines and electric vehicles.”
The LEIP program, introduced in the 2023–24 Queensland Budget, aims to accelerate investment in emission-reducing technologies, particularly in industries like coal mining that are vital for steelmaking and renewable energy production.