Cleaner Energy

CSG can help reduce greenhouse emissions in Australia and in countries buying LNG made from Australian CSG.

Electricity generated using gas produces up to 70% fewer greenhouse gas emissions than some existing coal generation technology, meaning coal seam gas has a significant role to play in reducing greenhouse gas emissions.

Furthermore, renewable energy sources such as solar and wind power are intermittent, meaning they cannot provide continuous power generation. Renewable energy must be combined with forms of baseload power (continuous power generation) and peaking power (which can be brought online quickly in times of high demand) to ensure reliable supply.

As gas is suitable for both baseload and peaking power, the increased use of gas-fired power will greatly reduce the growth in Australia’s greenhouse gas emissions by eliminating the need to build more coal-fired power plants.

LNG - reducing global greenhouse emissions

When converted to liquefied natural gas (LNG), CSG can help reduce greenhouse gas emissions in customer countries.

Because it is drawn from many small wells, CSG-LNG production is not as efficient as conventional LNG production. But it can still have a powerful effect on reducing global greenhouse emissions.

A report by global engineering consultancy WorleyParsons, Greenhouse Gas Emissions Study of Australian CSG to LNG compares the amount of greenhouse gas emissions associated with Chinese power generators using Australian LNG derived from coal seam gas (CSG), and those using imported black coal. Click the following links to read the executive summary of the report or the full report.

This independent analysis concluded:
• For every tonne of CO2 emissions associated with the CSG-LNG production and use, up to 4.3 tonnes of emissions are avoided when the gas is used instead of imported coal by Chinese power generators;
• A CSG-LNG project exporting 10 million tonnes of LNG per annum to China could avoid more than 32 million tonnes of global CO2 emissions each year;
• Over a 30-year project life, such a project could avoid 968 million tonnes of CO2, which is almost double Australia’s total annual greenhouse gas emissions.