Peabody is expanding its gas-fired power station at the Centurion underground metallurgical coal mine in Queensland from 5 megawatts (MW) to 20MW, with the project expected to meet almost all the mine’s electricity needs with self-generated energy.
The Queensland Government is supporting the expansion, which will use gas captured from old mining voids to generate electricity while reducing emissions for the operation, located 40 kilometres north of Moranbah.
Construction is expected to begin by the end of the year, creating up to 60 jobs. Centurion currently supports almost 525 direct jobs and produces coking coal for steelmaking.
Peabody Energy president and chief executive officer Jim Grech said the project would turn a mining by-product into a valuable energy source.
“The Centurion Goaf Gas Capture Project will transform captured mine gas into a reliable source of electricity capable of meeting almost all of the mine’s power requirements,” Grech said.
“With the support of the Queensland Government and our project partner Carbon Logica, we’re strengthening Centurion’s long-term future while supporting jobs and investment in Central Queensland.”
Queensland Minister for Natural Resources and Mines Dale Last said the Centurion project demonstrated the innovative and practical technology being deployed across Queensland’s resources sector.
“The Centurion gas-fired power station backs a major Queensland mine to make better use of waste gas, generate more power onsite and reduce costs from its operations,” Last said.
“By partnering with industry, we are helping keep Queensland’s resources sector competitive while supporting the workers, suppliers and communities that rely on it.”
The announcement comes as construction also begins on a separate gas-fired power station at Yancoal’s Kestrel mine near Emerald.
The new 30MW onsite facility will use gas from active mining operations and is expected to generate enough electricity annually to power the equivalent of more than 40,000 homes when it begins operating in early 2027.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.