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International News
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2006 International News
December 21, 2006 - 2007 Ukraine CMM / CBM Delegation Orientation Visit to U.S. Postponed
Due to recent and unforeseen developments in the Ukraine coal sector, the U.S. Trade & Development Agency (U.S.TDA)-sponsored Ukraine delegation visit to the United States, originally scheduled for late January 2007, has been postponed. The Business Briefing originally planned for January 26, 2007, in Morgantown, West Virginia, has also been cancelled.
The purpose of the visit was to learn more about the U.S. coalbed methane (CBM) / coal mine methane (CMM) industries and to facilitate partnerships between Ukraine and the U.S. During this visit, the delegation had planned to learn about U.S. technologies, products, and management methodologies in the CBM / CMM sector.
The orientation visit for the delegation from the Donbass coal region is anticipated to be rescheduled in April or May 2007. For more information about the rescheduled orientation visit, please email Mr. Dale Rice (darice@mse-environmental.com) or phone, 703-961-0710.
December 14, 2006 - Poland Seeks to Join International Methane to Markets Partnership
The Republic of Poland has officially requested to join the international Methane to Markets Partnership. Poland would join the United States and 17 other countries in efforts to advance the cost-effective, near-term recovery and use of methane – a potent greenhouse gas – as a clean energy source.
The Methane to Markets Partnership is a public-private partnership that brings together the technical and market expertise, financing, and technology necessary to advance methane recovery and use projects at landfills, agricultural operations, coal mines and oil and gas systems. Member countries work in collaboration with the private sector, multilateral development banks, and other governmental and non-governmental organizations through the Partnership's Project Network. Currently, more than 480 organizations from around the world have made commitments to this partnership.
There are now 18 Methane to Markets partner countries, including Argentina, Australia, Brazil, Canada, China, Colombia, Ecuador, Germany, India, Italy, Japan, Mexico, Nigeria, Russia, South Korea, Ukraine, the United Kingdom and the United States. All countries that request Partnership status must receive approval from the Partnership's Steering Committee. Poland's application for membership will be addressed as one of the items at the upcoming Steering Committee meeting in Rome on 14 – 15 December.
In 2003, Poland ranked 8th globally in coal production. Poland's coal mine methane (CMM) emissions ranked 7th globally in 2000 and were about 470 million cubic meters (2003). Poland has a number of coal mine methane projects underway that utilize CMM for power generation, mine boilers, and industrial uses.
EPA coordinates the activities of several U.S. agencies under the Partnership, including the U.S. Department of Energy, the U.S. Department of Agriculture, the U.S. Agency for International Development, and the U.S. Trade & Development Agency.
More about Methane to Markets >>
November 16, 2006 - EPA and India Sign Agreement to Establish Coalbed / Coal Mine Methane Clearinghouse in India
Today, the U.S. Environmental Protection Agency and the Government of India formally signed an agreement to work together to establish a clearinghouse which will be a vital hub of information on coalbed and coal mine methane (CBM/CMM) projects in India, the world's third largest coal producer. The two countries are collaborating on this venture as part of their commitment to the international Methane to Markets Partnership, which aims to recover and utilize otherwise-wasted methane resources. The U.S. Environmental Protection Agency, with other U.S. federal partners, is providing assistance for the development of the India CBM/CMM Clearinghouse.
"This clearinghouse will provide valuable information to potential investors and project developers interested in coalbed and coal mine methane projects in India," said William L. Wehrum, EPA's acting assistant administrator for Air and Radiation and chair of the Methane to Markets Steering Committee. "This commitment represents yet another initiative between the United States and India that will support clean development and energy security."
The India CBM / CMM Clearinghouse, which is expected to officially launch in 2007, will act as a catalyst for domestic and international investors and will spur coalbed and coal mine methane project development in India. EPA has successfully established coalbed methane clearinghouses in several other countries including China, Russia, and Ukraine.
October 19, 2006 - M2M Recent Activity Update
Under the auspices of both the Methane to Markets Partnership and the Asia Pacific Partnership, CMOP sponsored a 2-day workshop in Brisbane, Australia on October 4-5, 2006, focusing on coal mine methane issues. Other sponsors included Australia's Department of Industry, Tourism, and Resources and the Center for Scientific and Industrial Research Organization (CSIRO) and Japan's New Energy & Industrial Technology Development Organization (NEDO). Over 90 participants from more than 10 nations discussed technical issues related to extraction and utilization of coal mine methane, including case studies at U.S. coal mines, a site visit to CSIRO's Queensland Center for Advanced Technology, and financial discussions led by participants from the World Bank and carbon financing organizations.
The workshop was followed on October 6, 2006, by the Methane to Markets Coal Subcommittee Meeting. The meeting was attended by delegates from nine Partner countries and a visiting delegation from South Africa, which is considering joining the M2M Partnership. The meeting focused on progress made on researching site-specific project opportunities to be showcased at the 2007 Partnership Expo. Five developing nations presented summaries of their project opportunity templates and discussed their plans to develop additional "pipelines of projects" in the coming months. The Subcommittee discussed preparations for the 2007 Partnership Expo, including a coal specific agenda and formed a task force to further develop these plans.
September 29, 2006 - Flares to Safely Burn Goaf (Gob) Gas at United Colliery
As reported in International Longwall News on September 27, 2006, XSTRATA Coal's United Colliery has shown how to safely flair goaf (gob) gas at an active longwall mine and will capitalize on the resulting greenhouse gas (GHG) abatement credits.
United, located in New South Wales (NSW), produces about 3.5 million tonnes of semi-soft coking coal per year. Mining has extracted 5 out of 10 longwall panels to date. Since mining commenced, gas management consisted of a series of gas wells, with a combined capacity to extract in excess of 3000 litres per second of goaf gas from the longwall operation.
In 2005, as a result of the Xstrata Coal NSW voluntary election to the NSW Greenhouse Gas Abatement Scheme (GGAS), United commenced investigations into flaring a proportion of its methane to generate Large User Abatement Credits (LUAC's) under the scheme. In May 2006, Xstrata Coal released its Greenhouse Policy and entered into a cooperative agreement under Greenhouse Challenge Plus with the Federal Government. Through this program and the NSW Government's GGAS, Xstrata Coal has committed to abating more than 350,000t of methane from underground operations by integrating a flaring system with the active underground mining operation. Each flare had the capacity to consume up to 200 litres per second of gas extracted from the goaf, abating over 125,000t of equivalent CO2 per year.
"The major safety issue is obviously the construction of a system with an open flame over an active mining operation. The potential for ignition sources was considered to be the most significant safety risk as methane is explosive at concentrations less than 15 percent," reported Mary-Anne Murray, United's environmental coordinator. "A buffer trigger level of 30 percent has been built into the system whereby the flares shut down if greater than 30 percent methane is detected in the tube bundle monitoring system...Additional controls to monitor for flame and heat in the flares and pipelines running to the flares included slam-shut valves, flame arrestors, non-return valves and temperature monitoring both in the flare and on the pipeline."
September 21, 2006 - Several Fatal Coal Mining Accidents in the Past Week
There have been a number of fatal coal mining accidents in the past week, at least two of which are related to coal mine methane.
Ukraine
An explosion at the Zasyadko Mine in the Donbass coal field in Ukraine on 19 September killed at least eleven miners and injured more than 60 people, according to Reuters and CNN.com. 28 miners remain missing, while 172 miners were evacuated from the mine. Officials said that the explosion, which occurred more than 1,000 meters below the surface, was caused by a mixture of coal powder and methane.
In August 2001, more than 50 miners died in a blast at the Zasyadko mine. A similar blast at the mine in July 2002 killed more than 20. Accidents occur frequently in Ukraine's coal mines, which suffer from a lack of capital and poor maintenance.
Kazakhstan
An explosion at the Lenin coal mine in the central Karaganda region killed more at least 32 people, injured three, and left eight missing. The mine is about 200 km north of the capital Astana.
According to the Associated Press, more than 300 miners escaped on their own, said Stanislav Sytnik, a regional emergencies official. A fire caused by the morning blast had been put out, according to Zhanar Bekbanova, spokeswoman for the Karaganda regional administration. The mine is owned by Arcelor Mittal, which said in a statement that it was unknown what caused the methane gas explosion, and that a full investigation would be launched. For more information, please see: http://www.highbeam.com/doc/1P1:103115874/Mine+Explosion+Kills+23+in+Kzakhstan.html?refid=ency_botnm
South Africa
A mine shaft collapsed and killed two miners at Kumba Resources Tshikondeni coal mine. Kumba is majority-owned by Anglo American. Rescue teams worked for two days to reach the trapped mines, but their efforts were hampered by "poor roof conditions" ground problems.
China
Carbon monoxide poisoning at the Yuequan coal mine killed four miners on September 19. The mine is located in Chengde City, in the Hebei Province in north China, about 224 km northeast of Beijing. The cause of the accident is being investigated.
On September 13, a coal mine accident in northern China killed one worker and left another 23 trapped on Wednesday, the official Xinhua News Agency said. The accident occurred in a mine in the city of Datong in Shanxi province. No details were provided about the nature of the accident or how many people were in the mine at the time.
September 14, 2006 - Chinese Press Reports on CMM and CBM industry
A September 2 article on www.ChinaDaily.com tells the story of a taxi driver in Shanxi Province whose cab has been refit to burn compressed coalbed methane (CBM) and gasoline. In his area, one cubic meter of CBM is equivalent to 1.13 liters of gasoline but retails at less than half the price of gasoline. About 90 percent of the 1,300 taxi cabs in Jincheng City—50 km from the country's largest CBM exploitation base in Qinshui Basin—have been similarly refit.
The article also discusses CBM policy initiatives recently carried out by the Chinese government. On June 19, the State Council, China's Cabinet, promulgated a 16-clause guideline offering a series of preferential policies on land use, taxation, loans and access of methane-generated electricity to local power grids. As a result, financial, taxation, and land resources authorities are currently preparing measures, under the direction of the National Development and Reform Commission (NRDC), to put the guidelines in to practice.
One of the goals of such legislation is to encourage greater foreign investment in the CBM industry. To date, China United Coalbed Methane Corporation (CUCBM) has 27 contracts for CBM exploitation with companies such as the United States' Chevron and other foreign companies in Britain, Canada, and Australia. On April 5, CUCBM signed a cooperative contract with Orion Energy International to join into a Product Sharing Agreement (PSA) for exploitation of CBM resources in Shanxi Province.
September 7, 2006 - Blast Reported at Indian Mine
As reported in the Associated Press today, rescuers searched Thursday for 53 miners feared dead inside a coal mine in eastern India following an explosion, an official said. The explosion occurred Wednesday night at the mine, about 150 kilometers (95 miles) northeast of Ranchi, the capital of Jharkhand state, local town administrator Beela Rajesh said.
"The [miners] are trapped at a depth of 200 meters (yards) and chances of their survival are bleak," said Partho Bhattacharya, chairman of the state-owned Bharat Coking Coal Ltd., which owns the mine. A pocket of natural methane gas, apparently opened by the explosion, began leaking out just after the blast, he said.
Two rescue teams have entered the mine and succeeded in reopening air vents, Bhattacharya told The Associated Press. Three people managed to escape and were hospitalized, but rescuers were searching for 53 miners still trapped inside, Rajesh said. The three suffered burn injuries, indicating there could be a fire inside the mine. "However, they lost consciousness and were hospitalized and could not be questioned," Press Trust of India news agency quoted Bal Kishan Munda, a local administrator, as saying.
August 24, 2006 - Reminder - CMM Workshop in Australia
You are invited to participate in the upcoming Coal Mine Methane Workshop to be held in Brisbane, Australia, on 4-5 October 2006. This workshop is being held under the auspices of the Methane to Markets Partnership and the Asia Pacific Partnership for Clean Development and Climate. This two-day workshop is being co-sponsored by U.S. Environmental Protection Agency's Coalbed Methane Outreach Program (CMOP), Australia's Department of Industry, Tourism, and Resources, and Japan's New Energy and Industrial Technology Organization (NEDO).
The workshop will provide an opportunity for the coal mining community, coal mine methane project developers, vendors, and others to learn from technical experts from the U.S., Australia, and Europe about gas drainage technologies, methane recovery technologies, and case studies of coal mine methane projects in the U.S. and Australia. It will include a site visit to the Queensland Centre of Advanced Technology. A draft agenda, on-line registration, and hotel information (Brisbane Marriott) is provided on the Methane to Markets Web site at http://www.methanetomarkets.org/events/2006/coal/coal-oct406.htm. Although the workshop is free of charge due to generous sponsorship, advance registration is required.
Immediately following the workshop is a one-day meeting of the Methane to Markets Coal Subcommittee. Registration for this meeting is also available on the Methane to Markets Web site.
For more information, please contact Ms. Pamela Franklin (franklin.pamela@epa.gov).
August 11, 2006 - Riversdale Reports Successful Exploration at South African Colliery
Australia-listed Riversdale Mining said in a statement that its exploration at the Zululand Anthracite Colliery (ZAC) in South Africa indicated "new and substantial sources" of anthracite at two blocks being explored. Riversdale is the operator and owns 74% of ZAC, located in northern Kwazulu-Natal province of South Africa. ZAC is a former BHP Billiton operation. ZAC chairman Michael O'Keeffe said in the statement that "considerable progress has been made at ZAC since the company's last update to shareholders." "In particular, several encouraging developments are underway at the Deep E and Ngwabe Blocks, both confirming their potential as new and substantial sources of anthracite." Riversdale said the Deep E Block development is on schedule in November 2006 and on budget. It also said it was "pleased with the exploration success in the Ngwabe Block of leases, with drilling having resumed in the area, and with a number of encouraging results to date." A number of gassy abandoned anthracite mines are located in this area.
July 20, 2006 - CMM Global Overview Launched on M2M Web site
A new publication has been finalized and posted on the Methane to Markets Web site. The CMM Global Overview profiles the coal, coal mine methane, and coal bed methane industries of all 18 Methane to Markets member countries and 14 additional coal-producing countries worldwide. The publication's introduction contains information and data on all 32 profiled nations in one place for easy reference. Developed by U.S.EPA (CMOP), the CMM Global Overview is being posted in Final Draft For Public Comment and Review form; please forward any comments to Pamela Franklin (franklin.pamela@epa.gov).
Entire document or individual country profiles >>
July 6, 2006 - Germany Becomes 18th M2M Member Country
Germany Joins Methane to Markets as 18th Partner Country - On 3 July, Germany signed the Methane to Markets Terms of Reference and officially became a Partner of M2M. In particular, Germany has strong experience, technology, and knowledge of advanced waste management practices in landfills, implementing gas pipeline rehabilitation programs in local gas distribution networks, and coal mine methane-based power projects. Germany is the fourth country to join the Partnership since the initiative's launch in 2004, joining 14 charter Partners including the U.S.
June 1, 2006 - 2006 IPCC Guidelines Now Available
The Intergovernmental Panel on Climate Change (IPCC) has released the pre-publication draft of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. It is not yet in final form, but it is publicly available and accessible. Section 4.1 in Volume 2 (Energy sector) pertains to fugitive emissions from the coal mining sector. For the first time, these guidelines include guidance on estimating emissions from abandoned (closed) coal mines.
May 25, 2006 - Caterpillar Signs Contract with Jincheng CMM Project
With direct assistance from EPA, TDA, and other federal partners, U.S.-based engine manufacturer Caterpillar Inc. has landed a $58 million contract from China to supply the power generation equipment for the world's largest power plant fueled by coal mine methane (CMM). The power plant will produce 120 megawatts of electricity from coalbed and coal mine methane from the Sihe mine in Jincheng, in addition to exhaust gas heat that will be recovered to produce usable hot water and steam for the mining operations. This project is the result of collaborative efforts between the public and private sectors through the Methane to Markets Partnership, a U.S.-led initiative that now includes 17 partner countries, including China. This project also supports the goals of the Asia-Pacific Partnership on Clean Development and Climate, of which China and the U.S. are members.
May 18, 2006 - Two Noteworthy CMM Events in Russia
St. Petersburg Workshop
The UN Economic Commission for Europe, the State Research Institute on Mine Geomechanics and Mine Surveying (VNIMI, St. Petersburg, Russian Federation) and PROMGAZ have issued an announcement and call for papers for a workshop in St. Petersburg from 20-22 September 2006. The workshop is being organized in cooperation with the Russian Ministries of Education and Science, Industry and Energy, Federal Energy Agency, "Rostechnadzor", "Severstalresurs", "Siberian Coal Energy Company (SUEK)" and others. The purpose of the workshop is to define the most appropriate technologies and practices for the development of more efficient and effective production of methane from coal seams (coalbed methane or CBM) and methane degasification of coal mines (coal mine methane or CMM) for the purposes of developing unconventional energy resources, ensuring safe mining operations and improving the investment climate for such projects. For more information please contact Clark Talkington (clark.talkington@unece.org) or VNIMI (post@vnimi.ru) or check the Web site.
Kemerovo Conference—new dates
The international conference held in Kemerovo, Russia, entitled "Coal Mine Methane: Recovery, Utilization, Investment Opportunities" has been rescheduled to June 19-20, 2006. The goal of the conference is to discuss applications of modern technologies and equipment for coal mine methane (CMM) recovery and utilization. Emphasis will be made on practical measures aimed at methane emission reduction from coal mining and project investment opportunities in the coal mining industry under the Kyoto Protocol and other available mechanisms. This free conference will be hosted by the International Coal and Research Center – Uglemetan, a non-profit organization headquartered in Kemerovo.
May 11, 2006 - UN Side Event Includes CMM Project Discussion
The U.S. and Canadian governments co-hosted a well-attended Methane to Markets Partnership side event at the United Nations Commission for Sustainable Development (CSD) meeting on May 2, 2006, at the United Nations. This interactive Partnership event drew over 40 attendees from the private sector, multi-lateral development banks, NGO's, and national and regional governments. The event served to educate key stakeholders about the Partnership and provided a forum for discussion of experiences in implementing successful methane capture and use projects. The coal sector highlighted the Jincheng Anthracite Mining Group's planned 120-MW power project in Shanxi Province, China. The side event featured presentations by Environment Canada, EPA, the World Bank, the Alberta Energy and Utilities Board, and Caterpillar Inc.
At the event, the Methane to Markets Partnership announced the Methane to Markets Partnership Expo: a Forum for Projects, Technology, Financing, and Policy, which will be held in Beijing, China, in the fall of 2007. Exact dates and sites will be announced soon.
Latest newsletter of the Methane to Markets Partnership (PDF) >> (6 pp, 419K)
May 4, 2006 - Asia Pacific Partnership Convenes Meetings
From April 18-21, 2006, the Asia Pacific Partnership (APP) convened a meeting of the Policy Implementation Committee (PIC) and Task Forces in Berkeley, CA. The APP is a six-nation initiative designed to accelerate the development and deployment of clean energy technologies. The purpose of this meeting was to advance the development of Action Plans for the eight program areas identified at the Sydney Ministerial meeting in January 2006, including Coal Mining and Clean Fossil Energy.
Five of the Asia Pacific Partner nations sent delegations to the Coal Mining Task Force: Australia, China, India, Japan, and the United States. The United States delegation includes representatives from EPA (Coalbed Methane Outreach Program), Department of Interior (Office of Surface Mining), Department of Energy, the National Mining Association (NMA), and two U.S. coal mine companies. Task Force Action Plans are expected to be completed by August 2006.
More updates on the Asia Pacific Partnership >>
April 27, 2006 - 2006 NACBM Spring Forum a Success
The North American Coalbed Methane (NACBM) Forum held its spring 2006 session in Canonsburg, PA on April 19. The conference began the morning with two presentations from U.S. Federal Government staff. A representative from the Department of Energy's National Energy Technology Laboratory (NETL) spoke about the role of methane drainage in coal mine safety in light of recent coal mine accidents. The EPA's Coalbed Methane Outreach Program (CMOP) followed up with an update on coal mine methane recovery and utilization activity in the United States. Through out the rest of the day, 85 plus attendants heard seven additional presentations on coalbed methane (CBM) and coal mine methane (CMM) topics including new state legislatives, improved CBM fracturing techniques, CBM production lessons learned, CBM and CMM gas clean-up technologies, and proposed standards for calculating the gas content of North American coal. The next Forum session will be help in fall 2006.
April 20, 2006 - Two Notable International Publications Released
The International Labor Organization (ILO) has published their Draft code of practice on safety and health in underground coalmines which includes relevant parts on methane control. They will hold a meeting of their Experts group to discuss the draft code in May.
The Institute for Global Environmental Strategies (IGES) recently announced that the CDM Country Guide - a series of manuals for CDM project development in Asia - is now available for six countries (PDF) (199 pp, 1.6MB). The CDM Country Guide for China includes a section on coal mine methane and coalbed methane.
April 13, 2006 - New VAM Technology Demonstration Announced by Australia and China
As reported in International Longwall News on Friday 7, researchers from Australia and China—both founding members of the Methane to Markets Partnership—have announced plans to build the first ever pilot-scale demonstration VAMCAT (Ventilation Air Methane Catalytic Turbine), which they say will take a sizable bite out of methane emissions from underground coal mines. The low heating value gas turbine will be powered by about 1% methane in ventilation air. It will generate green power while also consuming the mine's fugitive methane, which is 23 times more potent than carbon dioxide as a greenhouse gas over a 100-year timeframe.
The Commonwealth Scientific Industrial Research Organization (CSIRO) and the Australian Greenhouse Office together with China's Shanghai Jiaotong University and Huainan Coal Mining Group will construct the demonstration unit at a Chinese mine. The project is being conducted under the Australian Government's Bilateral Climate Change Partnerships Program along with support from an Australia-China special fund grant under the Australian Government International Science Linkage Program. The initial investigation of catalytic combustion performance was supported by a grant from the Australian Coal Association Research Program (ACARP).
A prototype demonstration unit with a power output of 10-30 kilowatts will first be demonstrated in the Chinese mine. Operational performance data and experience gained from this small unit will be used for the design of a second-generation turbine with an output of at least one megawatt.
March 30, 2006 - New Energy Publications Available
Reserves, Resources, and Availability of Energy Resources 2004
The Federal Institute for Geosciences and Natural Resources (BGR), located in Germany, recently released a brief study on the reserves, resources, and availability of coal, oil, gas, and uranium in 2004.
Voluntary Reporting of Greenhouse Gases-1605(b) Annual Report
The Energy Information Administration (EIA) released the annual report titled "Voluntary Reporting of Greenhouse Gases, 2004" on March 6, 2006, in PDF format. This annual report is prepared by the EIA's Office of Integrated Analysis and Forecasting, pursuant to requirements under Section 1605(b) of the Energy Policy Act of 1992 (EPACT).
Proceedings of the UNECE Group of Experts and Task Force Meetings
Documents and Presentations from the Second Session of the Ad Hoc Group of Experts on Coal Mine Methane and the Second Session of the Task Force on the Economic Benefits of Improving Mine Safety Through Extraction and Use of Coal Mine Methane are available on the web. The events were hosted by the United Nations Economic Commission for Europe (UNECE).
Proceedings of the World Bank Group's Energy Week
The World Bank's annual Energy Week took place on March 6-9, 2006, at the World Bank's headquarters in Washington DC. It built on the G8 Plan of Action adopted at Gleneagles that outlines the way ahead on clean energy, infrastructure, climate change and Africa. Themes included energy security; clean energy and low carbon energy development; governance and anti-corruption in the energy sector; and energy for growth and poverty reduction in Africa.
March 23, 2006 - Conference Announcement—NACBM Spring Forum
The Officers and the Board of Directors of the North American Coalbed Methane Forum (NACBM) invite interested parties to attend the upcoming NACBM Spring Session. This season's conference will be held on April 19, 2006, at the Hilton Garden Inn-South Pointe in Canonsburg, Pennsylvania. A welcoming reception is also included on the agenda on the evening of April 18.
The NACBM Forum celebrated its twentieth anniversary at its 2005 fall conference in Morgantown, West Virginia. The agenda for this spring's event includes presentations from CBM Consulting, Department of Energy's National Energy Technology Laboratory (NETL), EPA's Coalbed Methane Outreach Program (CMOP), Penn Virginia, Steptoe & Johnson, Halliburton, Appalachian Energy, Engelhard, and the United States Geological Survey (U.S.GS). The registration form will soon be available on the CMOP Web site. The deadline for early registration fee is April 12, 2006.
March 16, 2006 - New Mining Legislation Passes House in Mexico
As Reported by Platts on March 10, 2006, Mexico's House of Federal Representatives has approved reforms to the country's mining laws that would make it possible for private sector mining companies to use methane gas taken from their operations and to use it to generate electricity for their own purposes. The companies would also be allowed to commercialize the gas but only through state-owned Pemex. The bill, resuscitated in December after an earlier version was shelved in 2003, will now be passed to the Senate Upper House for approval.
Current laws prohibit private companies from making use of excess gas as, according to the national constitution, all such materials belong to the state. Debate of the proposed reforms to Article 27 of the Constitution, which had been lying in Congress for several months, was rushed onto the agenda following last month's mining disaster in Coahuila state, when a methane gas explosion killed 65 coal miners.
An official from the Mexican Environmental Ministry reported to Reuters that 150 million cubic meters of methane are liberated from Mexico's coal mines into the air each year. This corresponds with EPA records that coal mine methane emissions in the Methane to Markets partner country were equivalent to 2.2 million metric tons of carbon dioxide equivalent (MMTCO2e) in 2000.
March 9, 2006 - Indian U.S.AID Mission Requests Applications for GDA Funding
The U.S. Agency for International Development (U.S.AID) mission in India has made a special Request For Applications (RFA) for financially supporting activities that focus on the commercial utilization of methane gas in India in support of the Methane to Markets Partnership. The RFA promotes a U.S.AID model known as the Global Development Alliance (GDA). All entities, including private sector energy managers or industry representatives, financial institutions, research and academic groups, and NGOs, are strongly encouraged to apply.
In India as in other developing countries, energy is a prerequisite for economic growth, and conversely, a lack of commercial energy constrains economic growth and social development. Methane could be used for electricity generation or fuel for industrial processes or domestic applications. This would allow for substitution of methane for more polluting fossil fuels or relieve the pressure on forest resources for fuel. The U.S.AID India mission would like to stimulate this potential by providing a grant for concrete activities that will lead to methane capture and productive utilization. Focal states include Andhra Pradesh, Gujarat, Karnataka, Rajasthan, and Uttar Pradesh.
U.S.AID/India may place up to six awards totaling up to $400,000 for Fiscal Year 2006. The financial support will serve as an incentive fund to minimize the risk and overall cost of the proposed activity. Awards are made for up to 24 months. There are two deadlines for submission of applications, which are limited to a 5-page concept paper in English. The first cut-off date is May 1, 2006, and the second and final cutoff date is June 16, 2006. Applications will be evaluated on technical approach, past performance, and budget.
More information and application instructions >>
More information on the GDA >>
March 2, 2006 - Ukraine's Cabinet Approved JI Procedures
As reported by a private Ukrainian company earlier this week, Ukraine's Cabinet officially approved a set of Joint Implementation (JI) procedures in Decree #206 on February 22, 2006. The legislation, which was subsequently signed by the Ukrainian Prime Minister, formally outlines the Federal Government's procedures of consideration, approval and implementation for domestic companies to carry out JI projects under Article 6 of the Kyoto Protocol.
The official procedure outlines a two-step process for the approval of JI projects by Ukraine's Ministry for Environmental Protection (MENP). First, a project developer must submit an initial application on the claimed amount of Emission Reduction Units (ERUs). The MENP is allowed up to one month to consider the application and issue either a Letter of Endorsement (LoE) or a written reason for refusal. If the application is accepted, the project developer must then submit addition application material including a baseline study, ERU calculations, a monitoring plan, an environmental impact assessment and a project financing plan. Within 30 days, the MENP will submit either a Letter of Approval (LoA) or reason for refusal. The final application must be submitted with the determination of one of the verifying companies that is accredited by the JI Supervisory Committee.
This important step opens the way for Ukrainian companies, including coal mines interested in developing coal mine methane recovery and utilization projects, to take advantage of the Kyoto Protocol's financial support. Currently, Ukraine ranks 4th in the world in methane emissions from coal mines.
February 23, 2006 - UNECE Coal Mine Methane Meetings held in Geneva
From January 30 to February 1, 2006, CMOP participated in coal mine methane (CMM) meetings convened by the United Nations Economic Commission for Europe (UNECE), in Geneva, Switzerland. The meetings included the Ad Hoc Group of Experts on Coal Mine Methane as well as the Task Force on the Economic Benefits of Improving Mine Safety through the Extraction and Use of Coal Mine Methane.
The Task Force aims to elucidate the benefits of methane recovery as a critical element of improving mine safety and will conduct several detailed case studies to examine the economic and safety benefits of incorporating methane recovery strategies at coal mines. The meeting of the Ad Hoc Group of Experts featured presentations from country delegates, academic scholars, and the financial sector. CMOP staff gave a presentation providing updates on global Methane to Market Partnership activities in the coal sector. The Ad Hoc Group of Experts meeting featured a workshop on the basics of project financing for CMM projects through securing debt and equity investments. This workshop was the inaugural event of a EPA-funded UNECE project to develop CMM recovery and utilization projects in Central and Eastern Europe and the Commonwealth of Independent States (CIS). This project seeks to facilitate financing of CMM projects in this region by overcoming the specific barriers of the mining community, building capacity to develop "bankable" investment documents, and providing access to the international finance community. There will be a follow-up workshop in the future. The UNECE is an active member of the Methane to Markets Partnership Project Network.
February 16, 2006 - New CMM Utilization Project in Development in Australia
In a December 2005 press release, GE Energy's Jenbacher gas engine business announced that it has been awarded a contract to provide 10 generator sets for a new 10.6 megawatt power plant that will use waste coal mine gas pumped from an active coal mine in the state of Queensland, Australia.
GE is supplying Clarke Energy Australia Pty. Ltd. (CEA) with 10 of its JGS 320 GS-S.L Jenbacher generator sets. Each Jenbacher unit will generate 1.06 megawatts of electricity. The plant, to be commissioned in May 2006, is being built at the Oaky Creek coal mine in central Queensland. The Oaky Creek coal mine is located in the southern part of the Bowen Basin, about 200 kilometers west of the Queensland coastline.
While waste coal mine gas plants often draw methane from closed mines, the Jenbacher engines at Oaky Creek will be generating electricity at an operational coal mine. The power generated at the Oaky Creek site will be fed into Queensland's high-voltage grid. Generating this amount of power with coal mine methane instead of natural gas saves the equivalent of approximately 13 billion cubic feet of natural gas per year.
CEA is supplying and installing the Jenbacher units as part of its turnkey project on behalf of Envirogen, which was awarded up to $13 million by the Australian Government to construct or modify three coal mine methane gas power stations at Oaky Creek, Teralba, Tahmoor. Australia has the second largest commercially advanced coal mine methane (CMM) industry in the world, the development of which the Australian Government has actively supported through the Greenhouse Gas Abatement Program (GGAP). The Oaky Creek project is consistent with Australia's industrial emissions reduction goals.
January 26, 2006 - IUEP Announces Grants for Greenhouse Gas Reduction Projects
In a January 20, 2006 press release, The International Utility Efficiency Partnerships, Inc (IUEP) announced the release of its 2006 Request for Proposals (RFP) for developing and implementing international energy efficiency projects and methane reduction projects that will result in the reduction, avoidance, or sequestration of greenhouse gases (GHG). The RFP will provide funding for approximately 10 to 15 GHG reduction projects with a total value of $4,000,000 including a 50/50 cost share requirement. The RFP is open from January 20, 2006 thru April 20, 2006. Grant winners are expected to be announced in May, 2006.
Projects awarded under this year's RFP will be those that demonstrate quantifiable emissions reductions that can be immediately implemented in host countries. RFPs in previous years have placed an emphasis on renewable energy technologies and other high-efficiency, lower-GHG power technologies that reduced, avoided, or sequestered GHG emissions. This year, IUEP will give priority to projects that meet the criteria for inclusion in the Methane to Markets Partnership.
The IUEP program is one of the voluntary initiatives created as part of the Power Partners program, a collaborative venture announced on February 12, 2003 between the U.S. Department of Energy (DOE) and the Edison Electric Institute (EEI). By making grants, IUEP provides financial and managerial support to enable worthy projects to be deployed in the international marketplace. These grant-making activities also encourage the development of strong partnerships between the developing world and U.S. manufacturers, developers, and electricity providers.
More information about this year's RFP >>
January 19, 2006 - Coal Bed Methane Project Underway in India
Great Eastern Energy Corporation Ltd (GEECL Exit EPA), a Calcutta-based company incorporated to explore, develop, distribute and market coal bed methane (CBM) in India, plans to initiate CBM gas production in India at the Raniganj coalfields in West Bengal. Drilling operations for the first 20 wells out of the planned 100 CBM wells will begin in mid January. GEECL expects an investment outlay of $130 million for the 100 well program.
GEECL entered into a production sharing contract for CBM over a 210 square kilometer block in Raniganj with the Ministry of Petroleum & Natural Gas. After a detailed evaluation report undertaken by Schlumberger, the total CBM reserves at Raniganj are estimated to be approximately 1.385 trillion cubic feet.
GEECL has drilled and tested three core wells and analyzed data from over 300 existing core wells. The allocated area was declared commercially viable after desorption results gave gas contents of up to 426 cubic feet per ton of coal, which are comparable to the Black Warrior and San Juan Basins in U.S.A. Gas from the wells is currently being flared and production tests are being carried out.
GEECL has entered into a tie-up with a compressed natural gas (CNG) supplier to purchase the CBM gas from the three pilot production wells at pre-determined prices. Beginning in February Calcutta Compression and Liquefication Company Ltd will begin conversion of CBM into CNG to supply the transport sector. GEECL has also identified potential local consumers to whom gas could be supplied. These include two steel plants and four power stations, which could be accessed by relatively short pipelines.
January 12, 2006 - Russia and Ukraine Settle Natural Gas Dispute
On January 4, 2006, Russia and Ukraine inked a new five-year deal after a pricing dispute between the two countries led Russia's Gazprom to follow through on its threat to reduce pipeline gas flow to major European markets. The agreement includes two long-term contracts – one on gas supplies to Ukraine and another on the transit of Russian gas via Ukraine to European consumers. Russia supplies about 25 percent of Europe's gas, with about 80 percent of that arriving in pipelines that cross Ukraine. Some reports indicate that the price on the contract is only valid for the first six months, however, and that the mechanism for the new price has not been agreed upon.
The terms of the agreement include a complex price scheme under which Gazprom would sell gas to Ro-sUkrEnergo, a company half-owned by Gazprom and half by Austrian bank Raiffeisen, at a rate of $230 per 1,000 cubic meters. RosUkrEnergo would then mix that gas with cheaper gas from the Central Asian countries of Uzbekistan, Turkmenistan and Kazakhstan and sell it to Ukraine at the price of $95 per 1,000 cubic meters. The new price is about twice as much as Ukraine paid previously, but less than the fourfold increase Russia originally sought. Ukraine will receive a 47 percent increase in transit fees for the gas which Gazprom sends through Ukrainian pipelines to European customers. The new deal also brings an end to the era of barter arrangements with both countries agreeing to pay cash for natural gas deliveries and transit fees.
Ukraine currently operates with an energy deficit, producing less than 50 percent of its domestic fuel and energy requirements from its own resources. More than three quarters of Ukraine's natural gas supply is imported from the surrounding region, with the majority coming from Russia. This reliance on imported gas supplies contributes to trade and political imbalance, thus creating significant concerns about energy security and social instability.
Since Ukraine is heavily dependent on imported natural gas, any additional domestic source of this fuel will serve to make the country's economy more self-sustaining. Ukraine is the world's fourth-largest emitter of methane emissions from coal mining activities. According to a recent EPA-sponsored study, 95 percent of the methane produced from Ukrainian coalmines is vented directly into the atmosphere, creating a waste of energy and impacting the environment as a major source of greenhouse gas emissions. Coal mine methane (CMM) and coal bed methane (CBM) are attractive domestic energy sources for Ukraine and they are becoming more economically feasible as regional market prices for natural gas increase.