Coal Mine Methane Emission Reduc tion Projects

1. Coal Mine Methane Emission Reduction Projects By Oleg Tailakov UNDP April 29th, 2008

2. Presentation Content • Generalized evaluation of methane emission within coal mining in Russian coal sector. • Review of process capabilities in the field of mine methane utilization. • Preparation of project design documentation.

3. Generalized Evaluation of Methane Emission within Coal Mining in Russian Coal Sector

4. General Evaluation Methodology • The methodology recommended in 2006 by the Intergovernmental Climate Change Expert Group was used for evaluation of methane emission from coal seams. • Sources: • Coal mining at mines (the volume of recovered and utilized methane is taken into account). • Coal mining at open pits; • Downstream activities. 4

5. Coal Mining at Mines and Associated Methane Emission in Russia Forecast for 2008-2012, 7.1 mln. t of CH4 148.9 mln. t of CO2 equivalent Coal mining at mines, million tons Methane emission, million tons Year

6. Possible Mine Methane Emission Reduction in Russia in 2008-2012 • Total methane emission - 148.9 mln. t of СО2equivalent. • Coal mine degassing systems (degassing efficiency of 15-30%) - 22-45 mln. t of СО2equivalent. 19% 65%

7. Review of Process Capabilities in the Field of Mine Methane Utilization

8. Mine Methane Utilization Technology • Electricity generation. • Weak methane-air mixture processing. • Methane burning in boilers to generate heat. • Methane flaring. • Operation of vacuum pumps utilizing methane. • Use of compressed methane as automotive fuel. 8

9. Electricity Generation • VVN-150; • Concentration of СН4 60-80% in the flow of 120 m3/min; • 7 gas generatorsx 1.021 MWe; • Electricity to the industrial site substation; • Dissipated heat. Electric substation Gas-generator plant Vacuum-pump station Degassing borehole Gas pipeline Power transmission line

10. Weak Methane-Air Mixture Processing Connection of the low-concentration methane-air mixture burner unit Surface plan Ventilation: 12 mln. m3/yearof СН4 (5 mln. m3 – uk.#19; 3 mln. m3 – uk.#26; 4  mln. m3 – uk.#29) To atmosphere Pump Station Mine ventilation shaft Ch4<1% Catalytic power unit Thermal energy El. substation Generators Workshop Electricity to consumer Machine workshop To consumer Grading facility Bunker Incl. shaft Transfer Tower Boiler House Inclined shaft # 2 Rock bin Existing heat pipeline Heat pipeline under design Catalytic power unit

11. Methane Burning in Boiler Houses to Generate Heat (1) Degassing borehole Gas pipeline Power transmission line 1 – Vacuum-pump station 2 – Control unit 3 – Modular boiler house

12. Methane Burning in Boiler Houses to Generate Heat (2) Modular Boiler House Air Heater to Dissipate Heat

13. Mine Methane Utilization JI Project Example 2009 Mine C Mine D Mine A Mine B Prep. Plant Quantity of methane recovered by the mine for utilization, t of CH4 Quantity of methane fed for utilization, t of CH4 Quantity of methane utilized at the facility, t of CH4 Quantity of flared methane, t of CH4 Preparation plant Gas-engine station Boiler house

14. Preparation of Project Design Documentation

15. Choice Determining Factors and Accepted Baseline Evaluation Methodology • Factors • Coal seam and alternation gas content. • Mine development plant. • Commissioning of high-performance equipment. • Coal seam degassing alternatives. • Methodology • Approved consolidated baseline methodology ACM0008 “Consolidated baseline methodology for coal bed methane and coal mine methane capture and use for power (electrical or motive) and heat and/or destruction by flaring”. 15

16. GHG Sources • CH4 • Surface degassing boreholes. • Underground degassing boreholes. • Worked-out area boreholes drilled into the rock cavities. • Systems to extract methane from isolated worked-out areas. • Ventilation systems. • CO2 • Methane flaring. • Electricity generation for capture and utilization of methane. 16

17. Additionality criterion Investment and process attractiveness of the baseline is higher than of the mine methane emission reduction project not registered as a JI project. Measurements Volume of captured mine methane using continuous flow meters, temperature, pressure and CH4 concentration measurements. Methane concentration is measured by a continuous analyzer or methane flow meters. Afterburning efficiency monitoring. Additionality and Monitoring 17

18. Example of Monitoring(Baseline) 18

19. Example of Monitoring (JIP) 19

20. Problems with Mine Methane Utilization Project Preparation and Implementation • Problems with mine methane ownership are possible. • Low gas and electricity prices. • Insignificant number of mines using degassing, decentralized methane capturing. • Lack of high-performance drilling equipment to drill boreholes from surface and mine workings. • Need to agree connection of consumers (in case of electricity generation) with power generation companies, possible competition with other electricity producers. 20

21. Recommendations to Investors and Developers in Respect of Dealing with Mine Methane Projects • Options envisaging equipment sharing, engagement of experienced mine methane project operators. • Review the possibility to use methane utilization products by external consumers. 21

22. Contact Information WWW.UGLEMETAN.RU Mr. Oleg Vladimirovich TAILAKOV E-mail: tailakov@uglemetan.ru Tel.: + 7 (3842) 281366 22