Methane from Australian Coking Coal Mines May Increase Steel’s Short-Term Climate Impact: Report

The report finds that  methane from super-emitting coal mines can double the climate impact of steel.

A new analysis showed that Australia’s coking coal could add 10-17% to the short-term climate impact of steel. The report titled “Hidden impact of Australian coking coal in steelmaking” by Ember said that in 2024, the world’s largest exporter of coking coal emitted an estimated 867 kilotonnes (kt) of methane, about twice the country’s entire oil and gas sector. 

The average reported and estimated methane intensities of mining this type of coal range from 3 to 5 tonnes per kilotonnes of coal. The report also highlighted that the country consistently underreported methane emissions from coal mines. Methane released from super-emitting coal mines can double the climate impact of steel production. 

This underreporting, according to the report, could mislead the steelmakers who are importing coal, making it harder to manage and reduce lifecycle emissions. It also noted that underreported methane emissions from Australian coking coal mines could raise climate impacts of steelmakers like ArcelorMittal, Nippon Steel, and POSCO by at least 6-15%. 

Between 2023 and 2024, around 4.3 Mt (million tonnes) of coal from “super emitter” Hail Creek was shipped to major steel plants owned by ArcelorMittal, Nippon Steel, and POSCO. The mining of this amount of coal was reportedly responsible for around 12.9 kt of methane emissions, with an additional 27.6kt believed to be unaccounted for due to the operator’s underreporting. 

The solution is to cut coal mine methane and shift to renewable production

The steel industry’s demand for coking coal during mining drives emissions. However, the report suggests that the industry’s ambition to decarbonise could encourage suppliers to adopt direct measurement, transparent reporting, and on-site abatement of fugitive methane. 

The report recommended cutting coal mine methane as a quick and affordable step for steelmakers to decarbonise their supply chains before 2030. The shift to renewable-powered iron and steel production remains the ultimate decarbonisation pathway for the 2050 net zero target. 

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