ABC News today reported that the 10-megawatt power plant is set to produce enough electricity to power 10,000 homes in New South Wales.
Under the agreement, Australian company Enviroglen will operate the $80 million plant and Energy Australia will buy the electricity produced.
The facility will reportedly stop more than 340,000 tonnes of greenhouse gas escaping into the atmosphere each year.
The coal mine methane will be captured from the Glennies Creek mine near Singleton in the upper Hunter area, ABC said.
