430F98085 &EPA United States Environmental Protection Agency Air and Radiation 6202J Draft October 1997 EPA Coalbed Methane Outreach Program Technical Options Series USE OF COAL MINE METHANE IN GREENHOUSES Colorado Greenhouse Facility Near Rifle, Colorado (Uses Waste Heat From Adjacent Natural Gas Fueled Cogeneration Plant To Grow Tomatoes) PROFITABLE OPPORTUNITIES FOR GREENHOUSE AND MINE OPERATORS GREENHOUSES CAN... * Use methane from coal mine pre-drainage and gob wells as a heating fuel * Use electricity generated on-site or nearby from coal mine methane * Use CO2-enriched coal mine ventilation air to maintain consistent temperatures and stimulate plant growth * Use coal mine waste water for irrigation at some locations ------- Depending on negotiations, coal mine methane can be cheaper than conventional natural gas for heating Why Consider Using Coal Mine Methane in Greenhouses? The cost of electricity from a coal mine generating power on site could be as low as $0.04 per kWh, which is typically less than commercial power rates M I any coal mines in the United States and other countries emit high volumes of methane. In the U.S., these volumes may range from less than 0.5 million cubic feet per day (mmcf/d) to more than 10 mmcf/ti. Greenhouses can use coal mine methane to meet their fuel requirements. At least one greenhouse in the Midwest is using coal mine methane to produce heat and electricity. Several gassy mines in the United 'States are capable of meeting the heating and electricity requirements that most greenhouses have. A greenhouse could purchase methane directly from the mine for use as a heating fuel, A mine can usually sell methane at a negotiated price that is lower than what the greenhouse would pay for conventional natural gas or other fuels. Based on these points, greenhouses can reduce their operating costs, while the mine benefits from sale of the methane. A greenhouse could also purchase electricity from a coal mine that has existing electric generating capability. While the primary driving forces for locating greenhouse operations near gassy coal mines are the potential net energy savings for the use of methane for heating and/or electricity production, there may be secondary financial benefits as well. One secondary benefit is the potential for use of mine ventilation air in a greenhouse to help stimulate plant growth. Ventilation air is rich in CO2 (2,000- 3,000 ppm in ventilation air as compared to 300-400 ppm in the atmosphere). Ventilation air also remains at a fairly constant temperature year-round, which can help maintain consistent greenhouse temperatures. Another potential benefit is the use of mine wastewater for irrigation purposes in cases where the quality of this water is suitable for greenhouse needs. Some greenhouses have been able to reduce heating costs by 87% using mine ventilation air to modify greenhouse temperatures Greenhouses may be able to use some of the mine's waste water for irrigation Benefits for Greenhouses, Coal Mine Operators, and the Environment... • New' Markets. Coal mines need a market for their methane, and greenhouses have a large energy demand. • Lower Prices. In many cases, gassy coal mines can supply methane to a greenhouse at a lower cost than commercial retail gas or electricity prices. • Increased Revenue. Coal mine operators gain additional, stable revenue sources. • Reduced Costs. The greenhouse operator would benefit from reduced energy costs, water, and CO2. • Environmental. Use of coal mine methane protects the global environment by reducing emissions of methane, a greenhouse gas, to the atmosphere. ------- Key Factors Affecting Coal Mine/Greenhouse Project Economics. • For a project to be economic, the mine must generally be able to recover at least 0.3 mmcf/d of methane • Greenhouses with electricity needs of at least 5 million kWh/year and heating needs of at least 100 billion BTUs/year will be good candidates • Projects with smaller greenhouses can be profitable given certain site-specific and market conditions (e.g., high electricity rates, cold climate, and high water costs) • Locating the greenhouses close to the mine can minimize fuel transport costs Additional information on this topic can be found in the EPA report, Making Coal Mine Methane Work for You: A Guide to Coal Mine/Greenhouse Projects, February 1998. For More Information. Greenhouse operators are seeking ways to improve economics by reducing fuel costs. Meanwhile, increasing numbers of coal mine operators are initiating methane recovery projects in an effort to increase mine safety and productivity, as well as gain additional revenues from methane sales. The use of coal mine methane in greenhouses can provide financial benefits to both parties. EPA is analyzing the economic and financial benefits of coal mine methane use in greenhouses. For more information about this and other profitable uses for coal mine methane, contact: Coalbed Methane Outreach Program U.S. EPA (6202J) 401 M Street, SW Washington, DC 20460 USA (202) 564-9468 or (202) 564-9481 Fax: (202) 565-2077 e-mail: fernandez.roger@epa.gov schultz.karl@epa.gov http://www.epa.gov/coalbed METHANE OUTREACH ' R O 0 R A M The mention of products or services in this case study does not constitute an endorsement by EPA. ------- |