Yesterday's Fairfax press further highlights the opportunities...

Yesterday's Fairfax press further highlights the opportunities from the MGP in the article "BHP punts on unproven tech to cut emissions".

Selected excerpts:
- BHP has warned its carbon emissions will rise in the short term as it looks to hit its 2050 net zero target, with Australia’s largest miner punting on unproven technology to switch its heavy machinery from diesel to electric and capture leaking methane from its coal mines.

- BHP’s Scope 1 and 2 emissions are primarily generated by its operations, and can be roughly broken down to 40 per cent from power use, 40 per cent from diesel fuel and 20 per cent from areas such as fugitive emissions from its coal operations.

- The $233 billion ASX-listed mining giant intends by 2030 to reduce its emissions by 30 per cent on 2020 levels, and has allocated $4 billion to achieve that goal.

- Methane is released as part of the coal mining process and has higher global warming potential than carbon dioxide. In underground mines, methane is captured and burnt off above ground. Dealing with the gas in open-cut systems is more complex, but BHP expects to extract up to 50 per cent of methane in coal seams before mining.
The company has been approached by businesses wanting to partner with it to extract methane from coal seams to use the gas, Wiley said.

A proactive tone indicating the world's third largest miner has already identified fugitive emissions are needed to be captured, has a credible plan to do so, has allocated significant capital to enable it, and has interested parties wanting to partner with them - hmm, whom might they be?

A reminder that BHP operate seen metallurgical coal assets in QLD's Bowen Basin:
https://www.bhp.com/what-we-do/global-locations/australia/queensland

Six are listed on the latest available Safeguard facility data:
https://www.cleanenergyregulator.gov.au/DocumentAssets/Pages/2021-22-Safeguard-facility-data.aspx


Did you know fugitive emissions account for an astonishing ~15% of QLD's emissions?
I certainly didn't!
https://www.des.qld.gov.au/climateaction/emissions-targets



QPME will IMO have plenty of miners knocking on their door to comply with the required 4.9% annual reduction in baseline Safeguard mechanism emissions, and the support of the state government, who has committed to achieving net zero emissions by 2050, with an interim target to reduce emissions by 30% below 2005 levels by 2030.

More and Moranbah it looks like the gas acquisition has been a masterstroke by SG and the team that will insulate a major OPEX item for Stage 1 (and future Stages) of the TECH project, as well as becoming a major revenue stream in its own right.