Poland’s JSW launches €25.6 million project to produce hydrogen from methane

Jastrzębska Spółka Węglowa (JSW), Europe’s largest producer of coking coal, has officially launched the ambitious METH2GEN project, which aims to combat mine methane and use it to produce cheap hydrogen. The total budget for the initiative is €25.6 million, of which more than €20 million is being financed by the company itself. The project has received support from the European Union, according to a JSW press release.

METH2GEN has two key areas of focus. The first is the introduction of the latest technology for degassing geological formations using directional drilling. This will achieve up to 70% methane capture efficiency in mining areas, particularly in the Budryk mine. This approach will not only improve work safety but also reduce costs and methane emissions into the atmosphere.

“This is an important step towards modern, safe, and environmentally friendly mining,” said Adam Rosmus, JSW’s vice president of technical and operational affairs.

The second component of the project is the construction of a facility for the production of hydrogen from excess methane using SMR (Steam Methane Reforming) technology. In the process, methane is converted into hydrogen, and the by-product CO2 is captured and used in fire prevention.

“This is a breakthrough solution that will allow 100% utilization of methane captured at degassing stations. This is particularly important in view of the new European methane standards,” emphasized Artur Badylak, Director of JSW’s Degassing and Methane Policy Office.

JSW has already begun purchasing specialized drilling equipment and is conducting geological surveys to select a location for the future hydrogen plant. The hydrogen produced should be significantly cheaper than electrolytic hydrogen, which is particularly relevant in the context of global decarbonization.

METH2GEN is one of four major JSW projects funded with EU support. The total budget for these initiatives exceeds €63.8 million. According to the company’s estimates, methane accounts for 73% of its carbon footprint, so reducing its emissions is a key priority within JSW’s environmental strategy.

In 2024, JSW reduced its coal production by 9.3% (12.3 million tons) and coke production by 8.6% compared to 2023 due to complex geology and operational problems. Last year, the company recorded a net loss of PLN 7.3 billion.