In 2004 Xstrata commissioned an 8 Mega Watt Envirogen Power Station to utilise fugitive methane emissions from old workings at the Teralba underground mine in New South Wales.

The plant will generate enough electricity for 16,000 homes and will prevent around 250,000 tonnes of CO2-equivalents from being emitted to the atmosphere each year.

The power station and associated gas processing plant occupies a small area of approximately 20 x 50 metres and the power station is in close proximity to the mine’s existing vent stack which reduces the gas transfer system to a minimum. The power station is wholly located on the mining lease area.

The Teralba power station became operational in 2004 and is now operating at full capacity. In 2005, methane emitted from Teralba reduced significantly by 82% from 503,000 tonnes to 92,000 tonnes CO2 equivalent in 2005, from increased electricity generation.