July 24, 2025 [Market Screener]- Jastrzebska Spolka Węglowa SA has launched a groundbreaking research and development project, METH2GEN, which aims to simultaneously reduce methane hazards in mines and convert waste methane into a valuable fuel of the future – hydrogen. The budget of the entire project supported by the EU is EUR 25.6 million, including JSW SA’s budget of more than EUR 20 million.

The METH2GEN project involves implementing a modern method of rock mass methane drainage using directional drilling, which will significantly increase the efficiency of methane capture in mines, including the Budryk mine. This will make it possible to achieve a methane drainage efficiency in the longwalls of around 70 percent.

“The use of this technology will not only allow JSW to improve safety. It will also allow it to reduce costs and reduce methane emissions into the atmosphere. This is another step towards modern, responsible mining,” says Adam Rozmus, JSW SA’s Vice-President for Technical and Operational Matters.

The second pillar of the METH2GEN project is the construction of a plant to produce hydrogen from excess methane that is currently burned or released into the atmosphere. Using the SMR (Steam Methane Reforming) technology, methane will be converted into hydrogen, and the resulting CO₂ will be captured and used for fire prevention.

“This is a breakthrough solution, as it will allow 100 percent utilization of the methane captured at the methane drainage stations, which is of great importance in the context of EU methane regulations,” stresses Artur Badylak, Director of the Methane Drainage and Management Department at JSW SA.

Hydrogen produced in this way is expected to be much cheaper than hydrogen produced by electrolysis, and demand for it is growing due to the development of decarbonization technologies both in Poland and around the world.

JSW is currently in the process of purchasing specialized directional drilling rigs and drilling wells to determine the locations for directional drilling. In parallel, research work is underway to determine where the hydrogen production facility will be built.

The METH2GEN project is just one of four major EU co-financed projects that JSW’s Methane Drainage and Management Department is currently implementing. The total budget for these initiatives is more than EUR 63.8 million.

Methane accounts for nearly 73 percent of JSW’s total carbon footprint. As part of its decarbonization efforts and in line with its Environmental Strategy, the Company is undertaking a number of initiatives to reduce emissions of this potent greenhouse gas, which is 28 times more harmful to the climate than CO₂.