Blue Energy has reached a deal with Stanmore Coal to capture and market mine gas that would otherwise be a waste product from the proposed Isaac Plains underground development.
The non-binding Memorandum of Understanding (MOU) relates to an area where the underground project overlaps with Blue’s ATP814P tenement in the northern Bowen Basin.
The capture and use of mine methane would mitigate venting and flaring of future fugitive gas emissions from the mine, Blue Energy said.
It would have a positive impact on emission targets for the coal sector while improving the mine safety profile.
Blue Energy said the MOU paved the way for further such agreements with other coal companies in the Bowen Basin.
The Queensland Government has committed $5 million on a feasibility study for a gas pipeline between Moranbah and the East Coast market.
This could transport gas from the Bowen Basin together with fugitive methane captured from coal mines along the proposed
pipeline route, it said.
The MOU contemplates pre-mining gas drainage from the relevant Stanmore tenements, conditioned to sales gas specifications and then sold into the future domestic gas contracts Blue will execute with domestic gas customer.