Miner South32 says $15 million from the NSW Government will help develop methane-capture technology that could be of use across the coal industry.
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The pilot grant, announced this week, will aid in developing the capture technology to the point where it becomes viable.
South32 said it already undertaken a successful small-scale trial of ventilation technology at Appin, in partnership with the CSIRO, called ventilation air methane mitigation (VAMMIT).
"This initial four-year trial, which commenced in 2018, proved the viability of VAMMIT technology to destroy fugitive methane emissions before they enter the atmosphere," a South32 spokesman said.
"We are now planning to undertake a further, commercial-scale pilot of VAMMIT technology at our Appin mine, co-funded by the New South Wales Government and South32.
"If the commercial-scale pilot at Appin mine is successful, it will expand our 'toolkit' of safe and commercially feasible abatement technology, suited to Australian conditions and requirements. We expect that the VAMMIT technology will be assessed for use at other locations providing benefits beyond just South32's operations."
Methane is significantly more greenhouse intense than carbon dioxide. It is often present in coal seams and is a safety hazard as it is explosive in concentrations between 5 and 15 per cent in air.
It needs to be drained by large ventilation systems, so ventilation air methane (VAM) becomes the largest source of methane emissions at most coal mines.
South32 will contribute $4.5 million to establish the facility.
"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," Resources Minister Paul 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.
"Our scientific trials in partnership with the CSIRO are delivering promising findings about abatement technologies and 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."
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