PERTH (miningweekly.com) – Coal miner Stanmore Resources has inked a non-binding memorandum of understanding (MoU) with fellow-listed Blue Energy over a potential hydrogen offtake agreement from Blue’s tenements in the Bowen basin.
Stanmore in October of last year inked an MoU with Blue to develop a detailed agreement for the capture, processing and marketing of mine gas from the Isaac Plains underground coal mine, in Queensland, where it overlaps with Blue’s own tenement in the region.
The companies said at the time that the capture and use of mine methane would mitigate venting and flaring of future fugitive gas emissions from the mine, and would not only have a positive impact on emission targets for the coal sector, but would lower the risk of underground gas release in the mine and improve mine safety.
Blue said on Tuesday that the company was investigating the potential for conversion of pre-development gas production from pilot gas well operations to hydrogen for supply to Stanmore’s Isaac Plains complex equipment fleet.
The gas used by Blue for conversion to hydrogen would be pilot gas, which would otherwise be flared. The company noted that the trial project would reduce greenhouse gas emissions from Blue’s activities, and would reduce fuel usage by Stanmore, which would also reduce carbon dioxide produced by its fleet of vehicles.
“Being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and in this case, has the added bonus of also lowering emissions from neighbouring mining operations,” said Blue MD John Phillips.