According to IEA figures, the coal industry emits over 30 million tons of methane per year. Methane occurs naturally in coal seams, and mining activities allow the methane to escape into the atmosphere. The operator can drain a portion of the methane for use in power generation, and methane can also be removed from ventilation systems in underground mines. In all cases, the source of emissions is known but the volume emitted is difficult to measure.
METHANE WATCH BRINGS THE FOLLOWING BENEFITS
Regulators and consumers in the steel and power sector are likely to differentiate between coal producers, and this could potentially lead to a price discount based on the carbon intensity of each mine. Companies that are proactive in the measurement, mitigation and disclosure of GHG emissions are likely to be rewarded with a stronger customer base and a higher revenue per tonne.
LICENSE TO OPERATE
Producers who are in the bottom deciles of the industry’s methane intensity curve are more likely to attract and retain talent, and better placed to engage with local communities and regulators.
Self-certification is likely to be met with a certain amount of scepticism. Instead, coal producers can benefit from the credibility associated with an independent 3rd party, verify emissions from their own mines and benchmark them against other producers around the world.