Underreported methane from Australian coal mines could increase the short-term climate impact of steel, according to a new analysis from energy think tank Ember on Thursday.
Emissions from the mines could raise the value chain footprint of leading steelmakers such as ArcelorMittal, Nippon Steel, and POSCO by 6 to 15%, as they continue to overlook methane embedded in their coal supplies, Ember said.
Australia, the world's leading exporter of coking coal, supplies over half of the global market.
The mines released an estimated 867 kilotonnes of methane in 2024, exceeding emissions from its entire oil and gas sector.
With methane intensities of 3-5 tonnes per kilotonne of coal, these hidden emissions can add 10%-17% to the short-term climate impact of steel.
Between 2023 and 2024, around 4.3 million tonnes of coal from Hail Creek, one of Australia's gassiest coal mines, were shipped to major steel plants owned by ArcelorMittal, Nippon Steel and POSCO, Ember found.
As stated by the United Nations Environment Programme's (UNEP) International Methane Emissions Observatory, the mine is where steel's climate impact begins.
- Cutting methane is a critical first step before 2030
The majority of these emissions can be reduced using existing, affordable technologies. For steelmakers, it represents one of the fastest ways to lower their footprint before 2030.
By insisting that suppliers use direct measurement, report transparently, and implement on-site abatement, companies can make their transition plans more robust and cut risks across their supply chains.
Commenting on the report, Nishant Bhardwaj, director at Ember, said that steelmakers can no longer ignore the climate cost of the coal they use.
"More than half of coal mine methane emissions can be avoided with existing technology, but only if buyers demand proper monitoring and abatement from their suppliers. Without mine-level transparency, their decarbonization plans risk being built on incomplete information," Bhardwaj said.
By Meryem Rana Soylu
Anadolu Agency
energy@aa.com.tr