Queensland Pacific Metals Ltd (ASX:QPM) is joining the circular economy, having formed a new subsidiary, QPM Energy Pty Ltd, and launched the Carbon Abatement Hub (CAH) Project as part of a vertical integration strategy to secure a gas supply chain for the TECH Project.
The CAH Project, to be built around 40 kilometres north of Moranbah, will be Australia’s first multi-user waste gas collection and processing facility.
It will collect waste metallurgical coal mine gas with a direct connection to the existing North Queensland Gas Pipeline for transport to QPM’s TECH Project and other customers.
Win-win situation
The project will facilitate a major reduction in regional carbon emissions caused by gas that would have otherwise been flared or vented into the atmosphere, establishing the critical infrastructure needed to process waste coal mine gas.
It will also connect into the existing 35PJ per annum capacity North Queensland Gas Pipeline for transport to the TECH Project and other customers in the Townsville region.
This is a win-win situation where the greenhouse gas emissions associated with metallurgical coal mining are significantly reduced and QPM Energy secures gas supply.
Ideally located
Northern Bowen Basin (NBB) coals typically contain high volumes of gas, which is emitted during the coal extraction process by direct methane release into the atmosphere from open pit coal mines, and with the flaring and venting of gas pre-drained from underground coal mines ahead of coal extraction.
The CAH Project will situated in Denham Park, adjacent to existing and approved underground and open-cut mines.
When it’s up and running, the project will create a hub for the capture and beneficial use of this large gas resource, abating significant quantities of carbon emissions and simultaneously facilitating industrial growth in North Queensland by establishing a new gas supply chain.
The new wholly owned subsidiary, QPM Energy Pty Ltd, has been formed to own and manage QPM’s Gas Supply Chain. The vertical integration of gas supply chain ensures QPM can secure gas required for the TECH Project and will open up opportunities for gas sales to third parties.
Strategic rationale
QPM and the TECH Project is critical to the establishment of a commercial waste coal mine gas business in the NBB. At full production, the TECH Project requires approximately 13PJ gas per annum, effectively providing baseload demand for QPM Energy and the CAH Project.
Establishment of the CAH Project will secure QPM’s gas supply chain and allow it to meet its objective of producing negative carbon nickel and cobalt.
It will also facilitate a significant reduction in carbon emissions, helping the Queensland Government meet its emissions reduction targets as outlined in its Energy and Jobs Policy.
LCA proves green credentials
With more gas supply and TECH project data available, QPM commissioned Minviro to update its life cycle assessment (LCA), first conducted in 2021.
The updated LCA, which passed third party critical review, calculates the TECH Project to be negative 989,213 tonnes CO2-e per annum, equivalent to approximately 215,000 typical passenger vehicles.
QPM Energy has submitted applications for regulatory approvals to Federal and State Government agencies and these are being processed.
Next steps
The key workstreams for QPM Energy include:
- finalising feasibility work around the waste gas compression facility and North Queensland Gas Pipeline connection;
- securing requisite regulatory approvals; and
- securing commercial arrangements with various coal mines and other third parties.
“By making the Carbon Abatement Hub available to all suppliers and users of gas, it will have an immediate impact of reducing Queensland’s carbon emissions and to help secure the energy required to produce carbon negative nickel and cobalt.
“There are several gas sourcing opportunities currently being investigated and I look forward to announcing those in the coming months.”