coal mine methane recovery & utilization in the united...
TRANSCRIPT
EXHIBIT 60
Coal Mine Methane Recovery & Utilization
in the United States:Emerging Trends
Pamela M. Franklin, Ph.D. Coalbed Methane Outreach Program US Environmental Protection Agency
US Coal Mine Methane ConferenceSt. Louis, Missouri
September 25, 2007
US EPA Coalbed Methane Outreach Program
• Voluntary program since 1994 – We don’t have any sticks, just carrots!
• Our mission – To promote the profitable recovery and use of coal mine
methane by working cooperatively with coal companies and related industries
• Our focus – Greenhouse gas emission reduction opportunities:
coal mine methane rather than coalbed methane
2
CMOP Focus:Mitigation of CMM
Recovery of CMM from diverse sources Abandoned
(closed) Mine Methane
Ventilation Air Methane
Ventilation shafts produce large volumes of very dilute methane (~ 1% or less) that is challenging to recover
Gob/Goaf GasPre-Mine Drainage
In-Mine
“Drainage” of CMM from active or closed mines yield gas streams quality ranging from low to high concentrations of methane 3
Photos Courtesy Various Sources
US Gassy Coal Basins
PENNSYLVANIA ANTHRACITE BASIN
NORTHERN APPALACHIAN
UINTA
POWDER RIVER
BASIN
CENTRAL APPALACHIAN SAN JUAN BASIN
BLACK WARRIOR BASIN
BASIN
PICEANCE BASIN
BASIN
BASIN
ILLINOIS BASIN
• Only about 50 US coal mines are considered “gassy”
• 20 underground coal mines conduct drainage / degasification
Bituminous Coal Basin Anthracite Coal Basin
4
US Coal Production
• World’s 2nd largest coal producer – 2005 production: 1.1 billion short tons – 50% bituminous, 42% subbituminous
• Trends in coal production – Shift towards surface mining
• 2005: Underground coal = 33%, surface 67%
– Shift towards Western US • 2005: 44% US coal production east of the Mississippi River
5
US CMM Emissions (2005)
Post-mining (UG) 11%
Post-mining (surface)
3%
Surface mines 16%
Abandoned
Ventilation emissions
(UG mines) 54%
Degas systems (vented)
7%
(UG) mines 9%
• United States ranks 2nd globally in CMM emissions • 2005 total emissions: 141.8 Bcf
6
Trends in US CMM drainage, recovery, and utilization
0
5
10
15
20
25
30
35
40
45
50
Billi
on c
ubic
feet
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar
ket p
enet
ratio
n
Recovered & utilized Emitted from drainage Market penetration
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
7
CMM Utilization
• ~10 projects operating at active mines – Most projects inject natural gas into pipeline
network
• Projects use drained gas from underground mines – Gas from advance degas wells and gob wells – Nearly 80% of all drained gas is recovered & used
• 41 Bcf CMM recovered and used (2005) – The most emissions avoided globally! – 37.8 Bcf from active mines, 3.4 Bcf from
abandoned mines8
Photo courtesy of Resource Enterprises, Inc.
Innovative US CMM Projects at Active Mines
Bituminous Coal Basin Anthracite Coal Basin
PENNSYLVANIA ANTHRACITE BASIN
NORTHERN APPALACHIAN BASIN
CENTRAL APPALACHIAN BASIN
BLACK WARRIOR BASIN
SAN JUAN BASIN
PICEANCE BASIN
UINTA BASIN
POWDER RIVER BASIN
ILLINOIS BASIN
CONSOLVP and Buchanan MinesIntegrated CMM projects:
pipeline, 88 MW power plant, coal drying
CONSOL Bailey Mine Microturbine
(70 kW)
Pinnacle Mine Pipeline injection project uses surface directional drilling to maximize gas production
Shoal Creek and Oak Grove Natural gas pipeline injection
JWR Blue Creek Mines BCCK Cryogenic plant converts gob gas into pipeline quality gas
Primary CMM Use: Eastern US Pipeline Injection
• Well-capitalized and extensive natural gasinfrastructure in Appalachian Basins
• Large portion of CMM is high-quality gas requiringminimal treatment
• Gob (goaf) gas in the Eastern US can be upgraded – Economically co-mingled
with high-quality gas – Processed to meet pipeline
standards Photos courtesy of Resource Enterprises and BCCK 10
Other Uses of CMM at Active Mines
• Power generation – ~90 MW capacity total
• Coal drying • Heating mine ventilation air
11
Photos courtesy of Resource Enterprises, Inc.
Drained Gas Recovery & Use:Comparison of US Coal Basins
Mil m3 Bcf
0
5
10
15
20
25
30
Northern App Central App Warrior Illinois Western
CMM Vented CMM Drained CMM Used
Source: Inventory of U.S. Greenhouse Gas Emissions & Sinks: 1990-2001, US EPA 2003
850
708
566
425
283
142
0
12
Future Opportunities: Increasing US CMM Recovery and Use
• Drained gas • Ventilation air methane • Closed (abandoned) mines
• Surface mines
13
Increasing Drained Gas Recovery and Use
• Market barriers – Pipeline access and system constraints in Western US – Low power prices
• Legal barriers – Ownership of CBM and coal mine methane is often unclear– State legislation defining ownership rights has had key impact
on US CBM production – Key distinction between fee lands and public lands
• Technological barriers – Achieving additional drained gas recovery
14
Future Opportunities: Ventilation Air Methane (VAM)
• Largest source of coal mine methane
• Low methane concentrations (typically < 1%)
• Technologies now available to harness ventilation air methane
• EPA and DOE are co-sponsoring technology demonstration project at abandoned coal mine in West
Bm3 160 Virginia 180
0
20
40
60
80
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
Ventilation Air Methane
Drained Gas140 4.2120
100
2.8 1.4
15
Tota
l Met
hane
Em
issi
ons
(Bill
ion
Cub
ic
Feet
)
16
Future Opportunities:Abandoned Mine Methane
• About 20 projects use gas from 30 abandoned mines• EPA developed methodology for estimating
emissions from abandoned coal mines • Opportunities abound!
– Free from constraints of active mining – Emissions avoided
• Challenges remain – Finding surface owner – Obtaining gas rights – Predicting gas flows
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Ann
ual M
etha
ne E
mis
sion
s(m
mcf
)
Emission Avoided Net Emissions (mmcf)
Future Opportunities: Surface Mine Methane
• Surface mines account for ~ 67% of US coal production but only ~16% of US CMM emissions – Mines in 13 states account for 90% of total
• Emissions not well characterized – Currently: coal basin-specific emission factors
• EPA is investigating potential to mitigate methane emissions from surface mines
17
Why has CMM Recovery and Use Been Successful in the US?
• Strong institutional knowledge – Degasification operations began in the early 1970’s to
enhance mine safety
• Financial incentives – Section 29 Credits (now expired) provided incentives to
drill CBM/CMM wells
• Forward-thinking industry – Some coal companies consider themselves to be “energy
companies” – Many coal companies see methane as a commodity rather
than a nuisance 18
19
Remaining challenges to CMM development
• Low electricity prices in many regions
• Lack of clarity regarding methane ownership regulations, status
• Sparse natural gas pipeline infrastructure (western US) US Pipeline Capacity
Source: US Dept of Energy
Conclusions
• US CMM emissions are projected to decline – Reducing emissions will become more challenging
• Markets for drained gas are well established – Opportunities for additional recovery still remain
• Future opportunities – Ventilation air methane, largest source of CMM
emissions – Recovery of abandoned mine methane – Surface mines are virtually untapped
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Thank you!
www.epa.gov/coalbed Pamela Franklin
[email protected] +1 (202) 343-9476
Barbora Jemelkova [email protected]
+1 (202) 343-9899
Jayne Somers [email protected]
+1 (202) 343-9896 21