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 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.
The Clean Energy Regulator develops variations to methods for a range of reasons including:
Methods being varied or methods under review are published on the
Department of Industry, Science, Energy and Resources (DISER) website and our
method consultation page.
method variations page provides additional information about how a method variation might affect an existing project.
The coal mine waste gas method variation came into effect on 29 September 2021. The coal mine waste gas method has been varied to:
If you have a current coal mine waste gas project, you may be able to transfer your project to the varied version of the method. Apply to transfer your project through the
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 Industry, Science, Energy and Resources information on the coal mine waste gas method
Coal mine waste gas - project application guidance
The crediting period is the period of time a project undertakes activities which generate eligible abatement.
The following project types are eligible for a 12 year crediting period:
Electricity generation projects that were previously eligible under the Renewable Energy Target are eligible for a 5-year crediting period only. This includes the following project types:
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 expanded use of a flaring device, a flameless oxidation device, or an electricity production device. This can include destroying the methane component of mine ventilation air.
Transitioning projects involve the operation of an electricity generation device that was formerly under the Renewable Energy Target until 31 December 2020.
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.
Audits during an extended crediting period
Once you submit an application to transfer your project to the varied method, the Clean Energy Regulator will be in touch to discuss appropriate auditing during the extended crediting period.
Specialist skills will be required to carry out the project with the method. Examples of specialist skills include:
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