Queensland Partners with Coal Miner Kestrel on Gas-to-Electricity Project

The Labor-led Queensland government said last week that it is backing Central Queensland’s sustainable future by investing in a new gas-to-electricity power project that will reduce mining sector emissions.

Through its AU$520 million Low Emissions Investment Partnership (LEIP) program, the state's government will provide funding to private company Kestrel Coal Resources, which is developing the project.

The project is expected to cut mining industry emissions by over 1 million tonnes of carbon dioxide in eight years.

The government investment will fast track Kestrel’s decarbonisation activities as its work progresses.

“The LEIP program is accelerating opportunities to drive down emissions, while supporting Queensland’s resources industry,” said Cameron Dick, deputy premier, treasurer and minister for trade and investment.

Kestrel's goal is to mitigate emissions with the use of proven abatement technologies.

The Queensland government said the firm's 30 megawatt power station “will be built at the Kestrel mine, north of Emerald, and will generate enough electricity to power more than 40,000 homes.”

Kestrel is the second partner in the LEIP program. The first is focused on the capture of coal seam methane at the South Walker Creek coal mine near Nebo, which is expected to operate for at least 15 years.

It also involves the construction of a 20 megawatt coal seam gas-fired power station at the mine by 2027.

Dick added that the government's efforts are helping to protect jobs in regional Queensland.

Before becoming fully operational in 2026, Kestrel’s gas-to-electricity power project is expected to create an average of 160 jobs on top of the existing mine workforce of 700.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.