Recent research from the Institute for Energy Economics and Financial Analysis (IEEFA) has thrown a spotlight on a significant issue in Australia’s coal mining sector: the underreporting of methane emissions. The study reveals that emissions from coal mining operations in the country have been consistently underestimated by a staggering 80%. This discrepancy is not just a statistical quirk; it carries profound implications for Australia’s climate goals, especially as the nation aims to cut methane emissions by at least 30% from 2020 levels by 2030, as part of the Global Methane Pledge agreed upon at COP28.
Australia, sitting on the world’s third-largest coal reserves, with 150.3 billion tonnes spread across 128 coal mines, faces a tough balancing act. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) estimates that methane constitutes around 30% of the country’s total greenhouse gas emissions. Given that methane has a global warming potential that is 21 times greater than carbon dioxide, the stakes are high for coal miners. They must grapple with the challenge of mitigating methane emissions while also maintaining the industry’s significant export value, which stands at A$127 billion ($85 billion).
The crux of the problem lies in how emissions are reported. Dr. Sabina Assan, a coal mine methane analyst at Ember Climate, points out that while underground mines are required to report emissions, many only conduct spot measurements rather than continuous monitoring. Surface mines, on the other hand, often rely on self-reported estimates, leading to widespread underreporting. This is compounded by the Australian Government’s Safeguard Mechanism, which mandates that companies exceeding certain emissions thresholds report annually, but the accuracy of these reports is questionable.
The IEEFA’s analysis of data from the International Energy Agency (IEA) and Australian government reports from 2020 to 2022 highlights a substantial gap; the IEA estimates that methane emissions are about 81% higher than what is recorded in the national inventory. This discrepancy amounts to roughly 28 million tonnes of CO2 equivalent emissions over the analyzed period. While Australia claims to lead the world in the mandated reporting of coal mine fugitive emissions, the reality is that many other major coal-producing nations lack similar oversight, resulting in a patchwork of data accuracy globally.
Looking ahead, the decline in coal production is projected to be marginal, only dropping 0.6% from 532.9 million tonnes in 2023 to 525.7 million tonnes by 2030. With 30 coal mines set to close by the end of the decade, it’s clear that merely shutting down operations won’t suffice to tackle methane emissions, particularly since abandoned mines can still leak methane. The industry and government must step up and invest in innovative technologies to achieve meaningful reductions.
Emerging technologies like degasification systems and catalytic oxidation are promising avenues for mitigating methane emissions. Degasification systems, which capture methane before it is released during the mining process, are becoming increasingly essential. The Queensland Government has recognized this potential, launching a project with Stanmore Resources to capture coal seam methane and convert it into electricity. This initiative could position Australia as a leader in the reusable methane market, with the IEA estimating that global utilization of methane could yield around 40 terawatt-hours of electricity.
Moreover, collaborative projects like the one between Mining3 and Low Emission Technology Australia (LETA) are exploring catalytic oxidation to combat ventilation air methane, further pushing the boundaries of what’s possible in low-methane mining. By commercializing these technologies, Australia stands at a crossroads: it can either cling to outdated practices that exacerbate climate issues or embrace a future where coal mining can coexist with sustainable practices.
The implications of these developments are profound. As the world increasingly prioritizes climate action, Australia’s coal industry must adapt or risk falling behind. The pressure is on to not only meet international commitments but also to redefine what it means to be a coal producer in a climate-conscious world.
