Hidden impact of Australian coking coal in steelmaking

The report finds that methane from Australian coking coal adds an average of 10-17% to the short-term climate impact of blast furnace-based steelmaking, with some 'super-emitting' mines potentially doubling this impact. It highlights significant underreporting of methane emissions in Australia, specifically citing the Hail Creek mine, and notes that leading steelmakers like ArcelorMittal, Nippon Steel, and POSCO fail to disclose the methane footprint of their coal supplies. The document argues that cutting coal mine methane is a cost-effective near-term decarbonisation step, as over half of these emissions are avoidable using existing technology.

• Methane emissions from Australian coking coal significantly increase the short-term climate impact of blast furnace-based steelmaking, adding an estimated 10% to 17% to its emission intensity.
• Australia's coking coal mines are a major source of methane, emitting approximately 867 kt in 2024, which is about twice the emissions of the country's entire oil and gas sector.
• There is persistent underreporting of coal mine methane in Australia; for example, emissions from the Hail Creek mine were estimated by independent studies to be significantly higher than official reports, with 2023 intensity exceeding 9.5 tonnes CH4/kt compared to a reported 4.8 tonnes CH4/kt.
• Major global steelmakers ArcelorMittal, Nippon Steel, and POSCO overlook methane in their Scope 3 reporting; adding estimated Australian coal mine methane would increase their reported Scope 3 emissions by between 6% and 15%.
• A case study of the Hail Creek mine reveals that between 2023 and 2024, ArcelorMittal, Nippon Steel, and POSCO imported 4.3 Mt of coal from this site, effectively importing three times more methane emissions than the operator reported.
• Reducing coal mine methane is a technically and economically viable short-term goal, with 45% of emissions from Australian metallurgical coal mines potentially abatable and 38% cuttable at a cost lower than the market price of Australian Carbon Credit Units (ACCUs).
• The EU Methane Regulation, adopted in 2024, creates regulatory risks for importers like ArcelorMittal, as foreign coal suppliers must meet monitoring and reporting standards by 2027 and potential methane intensity limits by 2030.

APA

Chang, Y.-T., & Assan, S. (2025). Hidden impact of Australian coking coal in steelmaking. Ember. https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf

Chicago

Chang, Yu-Ting, and Sabina Assan. Hidden impact of Australian coking coal in steelmaking. Ember, 2025. https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf.

Wikipedia

{{cite report |last1=Chang |first1=Yu-Ting |last2=Assan |first2=Sabina |title=Hidden impact of Australian coking coal in steelmaking |publisher=Ember |date=4 September 2025 |url=https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chang2025hidden, author = {Chang, Yu-Ting and Assan, Sabina}, title = {{Hidden impact of Australian coking coal in steelmaking}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }