If you have answered yes to both of these questions, the coal mine waste gas method may be suitable for your business. Read on for eligibility and compliance details.
The methane in coal mine waste gas is a greenhouse gas emitted by coal mines. The coal mine waste gas method applies only to underground coal mines. The method sets out criteria for projects that reduce emissions either through flaring, oxidation, destruction, or conversion of waste gas to operate an electricity production device.
These projects have a significant abatement effect as coal mine waste gas is primarily methane. Destruction, conversion, or oxidation converts the methane into carbon dioxide, which has a lower global warming potential. When coal mine waste gas is destroyed or converted in an electricity production device, the project can have can have the additional abatement effect of displacing electricity produced by other generators on the electricity network.
Two or more mines that are located sufficiently close together may share devices. It is important that sharing mines are identified in the application for declaration of the project, providing project requirements are met.
Section 114 of the
Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act) allows for methods to be revised and varied. This is to ensure methods continue to operate as originally intended. Variations to methods are developed and drafted by the Department of the Environment. Information on
draft methods and method variations is available on the Department of the Environment’s website.
The Clean Energy Regulator recommends making yourself familiar with proposed method variations relevant to your project should they arise, and how any changes between the original method and the varied method may affect your project plan.
A variation for this method came into force on 15 November 2016. All eligible offset projects approved after this date, and those approved projects whose crediting period had not begun when the variation commencement, will need to comply with the determination, even if the application was submitted before the variation commenced.
You must read and understand the method and other legislative requirements to conduct a coal mine waste gas project and earn Australian Carbon Credit Units (ACCUs). This includes:
Department of Environment information on the coal mine waste gas method
Coal mine waste gas - project application guidance
Seven years – the crediting period is the period of time a project undertakes activities which generate eligible abatement.
Relevant section of the Act:
There are general eligibility requirements in the Act which include:
The coal mine waste gas method is split into five categories of the project and each has additional specific eligibility criteria. Further detail about the specific eligibility criteria for each category can be found in
Part 3 of the method.
Relevant section of the Method:
A project involves the destruction or conversion of the methane component of coal mine waste gas from an operating coal mine by the installation or expansion of operation of a flaring device, a flameless oxidation device, or an electricity production device.
Applicants should be aware of types of projects that are excluded by the method, including:
Abatement is calculated by looking at the potential emissions of the destroyed or converted methane and reducing this by the resulting CO2 emissions, the ancillary emissions that result from the project and any historic abatement (where the project expands on existing abatement).
Emissions associated with the delivery of electricity to the grid are incorporated by applying a marginal loss factor to the electricity calculation.
Carbon dioxide and nitrous oxide, which are components of the waste gas, are unaffected by the destruction or conversion and are therefore excluded from abatement calculations.
Please see part 4 of the method for further information about the equations that are to be used in calculating the abatement.
Relevant section of the method:
In addition to the
general monitoring requirements of the Act, projects must meet specific monitoring requirements in the method. These include monitoring:
The method also sets out the consequences for failing to monitor certain parameters.
This method does not require any record keeping requirements that are additional to the general record keeping requirements of
the Act and
Each project will provide an offsets report as and when required by the Clean Energy Regulator.
Relevant section of the Rule:
The Act and the Rule provide the general reporting and notification requirements and the Method sets out two further method specific reporting requirements in relation to certain factors and parameters used to calculate abatement.
All projects receive an audit schedule when the project is declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the
audit information on our website.
Specialist skills will be required to carry out the project with the method. Examples of specialist skills include:
About The Clean Energy Regulator
Carbon Farming Initiative
Carbon Pricing Mechanism
National Greenhouse And Energy Reporting
Renewable Energy Target
Emissions Reduction Fund
Our Systems And Their Resources
Clean Energy Markets
Data and information
Subscribe to email updates
Information Publication Scheme
Freedom of Information
The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.
Follow us on Twitter
Follow us on LinkedIn