South32 wins pilot methane capture project to cut mine leaks

ASX-listed South32 will establish a new facility to tackle fugitive methane emissions at its Illawarra coal mine after receiving a $15m grant from the NSW government.

South32’s Illawarra coal mine. Picture: South32

ASX-listed South32 will establish a new facility to tackle fugitive methane emissions at its Illawarra coal mine after receiving a $15m grant from the NSW government.

The pilot ventilation air methane abatement project will look to capture methane leaks from South32’s coal mining operations as the miner and broader industry seek out ways to slash emissions.

The project, which will see South32 top up the government funding with its own $4.5m, will demonstrate the effectiveness of the technology for the industry, NSW Deputy Premier Paul Toole told The Australian.

“After a competitive expression of interest process, I’m pleased to confirm South32 as the successful tenderer to deliver a world leading, commercial scale ventilation air emissions abatement facility,” Mr Toole said. “The NSW mining industry is committed to reducing fugitive emissions from coal mining, which account for about 8.9 per cent of our state’s greenhouse gas emissions, with most of those fugitive emissions coming in the form of VAM.”

Fugitive emissions are losses, leaks and escapes of gases such as methane into the atmosphere from the production of natural gas, oil and coal. These gases escape in mines and are a significant component of greenhouse gas emissions, with mine methane emissions estimated to account for approximately 8 per cent of total global anthropogenic methane emissions, according to the CSIRO.

NSW’s scientific trials in partnership with the CSIRO are delivering promising findings about abatement technologies, Mr Toole said. “Expanding these trials at an operating mine with a commercial scale facility will show how technology can help to support a stronger and safer coal mining industry,” he added. The project comes amid strong global demand for coal, which contributed to record royalty returns of approximately $2bn in 2021, he said.

“Today we’re putting our money where our mouth is to encourage innovation in the coal mining industry with technology that could have applications in coal mines around the world.”

South32 has a target of reaching net zero carbon emissions by 2050 and plans to halve emissions by 2035. Ventilation air methane reduction is crucial to its decarbonisation plans. “While our gas drainage is aligned with industry best practice, some residual gases subsequently enter the underground mine ventilation system,” the miner said in its latest sustainable development report.

Originally published as South32 wins pilot methane capture project to cut mine leaks