Stanmore to build 20 MW gas-to-electricity power station at South Walker Creek coal mine

Stanmore Resources has reached an agreement with the Queensland government to construct a new 20 MW gas-to-electricity power station at the South Walker Creek open-cut coal mine as part of the Low Emissions Investment Partnerships (LEIP) program. This plant aims to reduce future fugitive mine emissions by capturing coal seam gas at the mine and converting it into electricity for on-site use.

Pending regulatory approval, Stanmore plans to complete the project by 2027, subsequently implementing coal seam gas drainage and electricity generation on a commercial scale for at least 15 years. LEIP funding will be allocated as project milestones are achieved until its completion.

Stanmore, with support from the Queensland government, intends to establish joint venture agreements for gas extraction, power plant construction, and ongoing operations. CEO and Executive Director Marcelo Matos stated, “The project will take methane from the coal seam and convert it into a long-term stable power solution for the mine, while continuing to produce and deliver high-quality metallurgical coal to our customers.”

Queensland’s Deputy Premier, Treasurer, and Minister for Trade and Investment, Cameron Dick, emphasized the government’s commitment to its 75 by 35 emissions reduction target and to maintaining a strong future for the resources sector in Queensland. The LEIP program, introduced in the 2023–24 Queensland Budget, is designed to accelerate investment in initiatives that reduce emissions from some of the state’s most polluting facilities, including those in the metallurgical coal sector.