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Stanmore Wins LEIP Funding for Gas-to-Electricity Project at South Walker Creek Mine

venkat by venkat
September 5, 2024
in News, Upstream
0

Stanmore Resources has successfully secured government funding through the LEIP program to support the development of a new 20MW gas-fired power station at its South Walker Creek coal mine. This strategic investment will enhance the company’s energy generation capabilities and contribute to the region’s economic growth.

Supported by the Queensland Government, Stanmore Resources’ project is set to reduce future fugitive emissions by capturing coal seam gas at the South Walker Creek Mine. This gas will be repurposed on-site to provide a sustainable, long-term energy source for the mine, aiming for a fully self-sufficient power supply. Upon obtaining regulatory approvals, construction is projected to be completed by 2027, with commercial-scale coal seam gas drainage and electricity generation planned to continue for at least 15 years.

The LEIP funding will be allocated based on the achievement of project milestones through to its completion. Alongside this government support, Stanmore will also establish Joint Venture agreements to facilitate the extraction of gas and the construction and ongoing operation of the power plant.

CEO Marcello Matos expressed enthusiasm for the project, highlighting its significance in transforming methane from coal seams into a reliable, long-term power source for the South Walker Creek Mine. He noted that this initiative will not only reduce future Scope 1 emissions but also ensure the ongoing production and delivery of high-quality metallurgical coal to customers. Matos welcomed the Queensland Government’s support as a pivotal element in advancing the project. This announcement has been authorized for release by the Board of Stanmore Resources Limited.

Highlights include the support from the Queensland Government’s Low Emissions Investment Partnerships (LEIP) program for a new gas-to-electricity power project. This initiative will establish a 20MW gas-fired power plant at the South Walker Creek Mine. The project aims to utilize coal seam gas to generate electricity, significantly reducing the mine’s future Scope 1 emissions while ensuring a stable, long-term power supply for operations. The LEIP funding underscores the commitment to advancing sustainable energy solutions in mining.

Stanmore Resources Limited is a leading metallurgical coal producer with a significant presence in Queensland’s Bowen Basin. The company manages and operates multiple coal mines, including South Walker Creek, Poitrel, and Isaac Plains Complex, while also developing projects such as Eagle Downs, Lancewood, Isaac Plains Underground, and Isaac Plains South. Additionally, Stanmore holds a substantial portfolio of prospective coal tenements in both the Bowen and Surat basins. Stanmore Resources is dedicated to enhancing shareholder value through the efficient operation of its mining assets while actively seeking additional development opportunities within the region to further expand its portfolio and operational capabilities.

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