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Queensland Pacific Metals has lined up a new Bowen Basin gas deal to feed its planned Townsville battery chemicals plant as it aims to become Australia’s first producer of ‘net zero carbon’ nickel.

An MOU with Transition Energy Corporation and North Queensland Gas Pipeline will see the parties work together on a gas field supply chain to QPM’s TECH (Townsville Energy Chemicals Hub) project.

Their plans involve draining and harvesting gas which would otherwise be flared or vented from operating mines in the northern Bowen Basin.

This would be transported to a new centralised gas processing and compression facility before transportation to the Lansdown Eco Industrial Park via the North Queensland Gas Pipeline.

“I am delighted to have signed this agreement with such high-quality partners and I look forward to
working with them as part of the completion of our definitive feasibility study,” QPM chief executive officer Stephen Grocott said.

“In particular, I am pleased by the potential to help create Australia’s first producer of net zero carbon nickel.”

The TECH project is estimated to require 10 PJ pa of gas once in steady state operation.

QPM previously commissioned Minviro to assesses the greenhouse gas (GHG) emissions arising from the TECH project.

The study showed that nickel production from the TECH project would be one third lower than the global average for battery grade nickel sulfate.

QPM said the study also highlighted the opportunity for further reductions in GHG emissions that could result if the TECH Project’s gas supply was sourced by harvesting gas from that which is currently being flared or vented from operating mines.

Queensland Pacific Metals also has an agreement with Edify Energy, which is developing a utility-scale solar and battery power station to supply electricity to the Lansdown Eco-Industrial Precinct.

TECH plant gas deal to build green credentials