Envirogen owns and operates four waste coal mine methane power stations located at Tahmoor, Teralba and Glennies Creek in New South Wales, and Oaky Creek in Queensland.
UTA and Hastings' managed The Infrastructure Fund (TIF) reached financial close for the purchase of 98.7 percent of the Envirogen business on 9 May 2008. The Envirogen Employee Benefit Trust holds the balance of investment.
Envirogen's power stations have an aggregate installed capacity of 35MW, expected to increase to 43MW in 2009. The power stations generate power using the waste mine methane that coal mines must extract during the mining process. Capturing the methane that would otherwise be released into the atmosphere and converting it for power generation abates significant greenhouse gases whilst at the same time utilising a resource for power generation which would otherwise be wasted.
Methane has 21 times the global warming potential of carbon dioxide and as such the process of conversion for power generation is particularly beneficial.
The power stations are supported by long-term site leases, generation connection arrangements, gas supply agreements and electricity off-take contracts. The electricity produced by the power stations is sold into the local grid, reducing transmission losses. The power stations are fully operational and recently commissioned, and so require minimal plant upgrades to support capacity expansion.
The intention is to expand Envirogen's operations using it as a platform for growth opportunities in the sector.