Public-Private Partnership to Advance the Recovery and Use of Methane as a Clean

Energy Source

Presentation for BAQ 2006 by Kevin Rosseel, U.S. EPA

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Overview

Why Methane? The Methane to Markets Partnership Methane to Markets Partnership Expo Conclusions

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Why focus on Methane?

A potent GHG (100-year GWP of 23)The 2nd most important GHG accounting for ~18% of total climate forcingA primary constituent of natural gas and a valuable, clean-burning energy source

Methane - 16%

Nitrous Oxide - 9%CFCs, HFCs, PFCs, SF6 - 1%

Carbon Dioxide (Fuel and Cement) - 55%Carbon Dioxide

(Land Use Change and Forestry) - 19%

Global Greenhouse Gas (GHG) Emissions in 2000 = 40,702 MtCO2e

Manure4%

Rice11%

Enteric Fermentation

28%

Solid Waste13%

Coal Mines -8%

Natural GasSystems - 15%

Biomass Burning

5%

Waste Water10%

Fuel Stat. & Mobile

1%

Biofuel Combustion

4%

Oil1%

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Cost-Effective Projects Recover and Use Methane

Oil and Gas SystemsCoal Mines

Landfills Livestock Waste

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Significant Co-benefits of Methane Recovery and Use Projects

Important local energy source and reduced waste of a valuable fuel

Improved industrial safety and productivity Improved air quality, water quality and

reduced odors Reduced greenhouse gas emissions Progress toward sustainable development

goals Economic growth and energy security

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Methane to Markets Partnership Overview

Advances recovery and use of methane as a valuable clean energy source

Encourages development of cost-effective methane recovery and use opportunities in

– coal mines– landfills– oil and gas systems and – agriculture (manure waste management)

Private companies, multilateral development banks and other relevant organizations participate by joining the Project Network

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18 Partner Countries – So Far

EcuadorGermanyIndiaItalyJapanKorea

Argentina AustraliaBrazilCanadaColombiaChina

MexicoNigeriaRussiaUkraineUnited KingdomUnited States

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Methane to Markets Activities

Action oriented – focus on project development

Partners and Project Network members cooperate to:– Identify cost-effective opportunities for capturing methane

emissions for energy production – Identify and remove legal, regulatory, financial, and other barriers to

project development– Develop sector action plans and a process for evaluating their

implementation– Conduct training, technical exchange, and demonstrations to

support project development

Developed countries commit to assist developing countries and countries in transition in undertaking the activities listed above

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Partnership Organization

Steering CommitteeChair - USEPA

AgricultureChair – UK

Co-Chair – Argentina

Coal MinesChair – US EPACo-chair – India

Vice chair – China

LandfillsChair – Italy

Co-chair - Argentina

Oil and GasChair – Mexico

Co-chair - Russia

Project Network Project Network Project Network Project Network

ASG(Administrative

Support Group EPA)

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U.S. Involvement in M2M

U.S. EPA staffs the Partnership’s Administrative Support Group U.S. has pledged up to $53 million over five years Key activities to advance project development:

– Identify and assess project opportunities• Pre-feasibility and Feasibility studies

– Support technology transfer, training, and capacity building• Workshops and Conferences • Study tours• Developing Reports / Databases / Clearinghouses

– Address barriers to project development and increase access to information

• Financial/market, regulatory, technical

– Technology demonstration and deployment

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The Project Network

Project network members are private firms, development banks, NGOs or other governmental and non-governmental entities with an interest in methane recovery and use projects

– Private sector and broad stakeholder involvement is central to the success of the Partnership

– Provide technical input and expertise – Participate in all activities and meetings– Identify and implement activities and projects

Currently almost 500 organizations including:– World Bank– CAI-Asia just joined in August 2006

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The Project Network II

Participating organizations are those interested in methane recovery and use project development

– Project developers– Financial institutions– Equipment manufacturers/vendors– Site and/or project managers– Non-governmental organizations – National and international policy makers, etc.

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2007 M2M Partnership Expo

Fall 2007, Beijing, China– China and the Secretariat working closely together

Key Objectives– Showcase methane project opportunities, identify

projects with financing opportunities– Showcase methane recovery and use technologies and

services– Sector tracks on key technical, policy, financial, and

other project development issues

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Case Study: ADB and M2M

EPA and ADB have a strong history of collaboration, especially in the coal mining sector

– ADB and EPA are working through the China Coal Information Institute to identify coal mine methane recovery and use opportunities

– EPA and ADB have co-sponsored several CMM workshops in China, most recently in September 2003

– Two successful projects are already underway: • $117 million loan to the Jincheng project in Shanxi Province

that will include CMM-based power generation and local gas distribution

• $70 million loan to use CMM in local distribution systems in Liaoning Province

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Conclusions and Next Steps

M2M is a unique international partnership– Near-term– Voluntary– Public-private– Multiple benefits (energy, economic, environmental,

safety)

M2M offers collaborative opportunities for participants

We look forward to future dialogues with interested parties to identify areas where we can work together

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For More Information and to Follow up

Website– www.methanetomarkets.org

Administrative Support Group– asg@methanetomarkets.org– Tel: +1-202-343-9683– Fax: +1-202-343-2202– Birgfeld.erin@epa.gov– Ferland.henry@epa.gov