United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA 430-F-95-029
March 1995
v EPA
EPA
430
F
95
029
c.2
COALBEP METHANE
OUTREACH PROGRAM
C O A
METHANE
OUTREACH
PROGRAM
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Printed .with Soy/Canola Ink on paper that
contains at toast 50% recycled fiber
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OUTREACH
' R O d R A M
&EPA
COALMINE PROFITS
AND
PROT EC
Information Resources Center
US EPA (3404)
401 M Street, SW
Washington, OC 20460
Headquarters Library
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.e methane (natural gas)
contained in coal and
released by coal mining
is an under-used
economic asset that
presents opportunities
for additional profits for
coal mine operations, as
well as environmental
protection.
his coalbed methane is
explosive at low
concentrations, and
underground mines
traditionally have spent
large amounts of money
to reduce methane
levels and maintain safe
mining conditions.
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EPA's COALBED METHANE OUTREACH PROGRAM is
part of the U.S. Climate Change Action Plan, which outlines a
set of voluntary, profitable actions that will enable the United
States to reduce its greenhouse gas emissions to 1990 levels by
the year 2000.
The COALBED METHANE OUTREACH PROGRAM, like
other programs in the Action Plan, catalyzes U.S. ingenuity and
technical know-how to improve the economy and protect the
environment.
"Tiiis must be a call, not l;or more bureaucracy or
' V
regulation or unnecessary costs, but instead ror
O ti '
American ingenuity ana creativity, to produce me best
and most enercK/-emcient technology."
President Clinton, The Climate Change Action Plan
Octoter 1993
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OUTREACH
1 R O G R A M
The COALBED METHANE OUTREACH PROGRAM
is a voluntary program that works with coal mines and
related industries to encourage the recovery and use of
methane that would otherwise be emitted to the air by
mining operations.
It focuses on identifying and removing barriers to methane
recovery at coal mines and creating project opportunities.
Program activities will include:
"Profiling conditions at the 75 gassiest"
in the United States.
coal mines
Conducting site-specific assessments of
opportunities.
project
Working with industry to highlight profitable
opportunities to reduce the waste of icoalbed
methane.
Reaching out to associated industries] local
communities, and others to generate 'support
for methane recovery projects.
Working at the federal, state, and local levels
to reduce the barriers to project development.
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OUTREACH
' R O C R A M
THfETQUPIREIICIPV
...THE BOTTOM LINE
In today's tight coal market, mines cannot afford to throw away
money unnecessarily by venting a valued commodity to the
atmosphere.
Coalbed methane recovery improves a coal mine's bottom line by
turning a cost center into a revenue source. It can create profits in
two ways:
First, the recovery of methane in mine degasification systems
reduces the amount of methane that must be controlled by
ventilation systems. This saves energy, improves coal mining
productivity, reduces downtime, and can reduce ventilation
system capital and operating costs.
Second, the recovered methane can be sold or used as energy—
unlike the diluted methane contained in ventilation air—and the
mine earns revenue from the sales.
PROFITS THROUGH METHANE RECOVERY
BEFORE
COAL
SALES
REVENUE
AFTER
METHANE
SALES
REVENUE
METHANE
RECOVERY
COAL
SALES
REVENUE
The impact of these projects
on the bottom line is
substantial. The ventilation
electricity costs alone for a
medium-sized gassy coal mine
could add up to more than
half a million dollars each
year. When the revenue from
gas sales and increased coal
production is included, a
mine could increase its prof it
margin by 25 percent.1
Revenues Costs
Revenues Costs
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ENVIRONMENT
~y
4*
•
Jfest/methane emitters after landfills
Perhaps as much as 35 percent of the e
mines may be reduced profitably.
...AND JOBS
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CfWIE
WHO CAN TAKE THE CLIMATE CHALLENGE*
A new program has started that should interest coal companies. The program is voluntary
and focuses on electric utilities. Coal companies cannot join it, but they can profit from it.
Called Climate Challenge, this program is a joint effort of the U.S. Department of Energy
and the electric utility industry to reduce greenhouse gas emissions. Hundreds of utilities
have joined the program and are developing plans to reduce their emissions.
WHAT DOES CLIMATE CHALLENGE HAVE TO DO
WITH THE COAL INDUSTRY?
Coal companies with methane recovery programs may be able to improve their competitive
position by transferring their methane reductions to utility customers. Many utilities actively
seek projects that can significantly reduce emissions, and projects at coal mines
attractive opportunities.
prese-r
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CAN COAL MINE METHANE RECOVERY PROJECTS MAKE A DIFFERENCE?
Yes, because gassy mines can produce large amounts of methane and methane is a very potent
greenhouse gas.
Under Climate Challenge, utilities may pledge to keep their greenhouse gas emissions from
growing between 1990 and 2000. Participation in a coal mine methane project can:
^ Enable a small utility, to meet this pledge with a single project.
H? Contribute 25 percent or more of the emission reductions sought by larger utilities.
HOW CAN COAL COMPANIES PARTICIPATE?
By seeking utility partners in methane recovery projects.
By including methane reductions in coal offers.
By working with their utility coal customers to develop other approaches.
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M E T H A N
OUTREACH
' R O C R 4
In the last decade, 10 U.S. coal mines have developed coalbed
methane recovery projects. Jim Walter Resources developed the first
project at its four mines in Alabama. Since then, JWR has been
joined by other companies including Consolidation Coal Co., U.S.
Steel Mining, and Soldier Creek Coal Co.
J hrough coalbed methane recovery, Jim Walter
Resources has turned mines with prohibitively high
ventilation costs into financial successes, bach year,
the 4 JWR mines produce about 14 billion cubic reet
(ocr) or high-quality methane irom a variety or mine
degasiricatioii approaches and sell the gas to a nearby
pipeline. The coalbed methane recovery program has
enabled JWlv to use smaller ventilation rails, use less
energy to ventilate the mines, and avoid construction
01 at least three additional ventilation sbarts, which
lowered coal production costs by more than one dollar
per ton or coal mined. Although its mines are some or
the gassiest in the world, JWR is ranked among the
top 10 mining companies in the United States in
terms or its saretv record.
The methane recovery program has enabled JWR to
mine coal salely while earning additional revenue
Irom its gas sales. What's more, Jim Walter Resources
is preventing signilicant methane releases each year—
a reduction in greenhouse gas emissions that is equal to
removing /50,000 cars irom America's roads.
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OUTREACH
' R O C R A M
RECOVER V f
Many more mines can follow the lead of Jim Walter Resources and capture their methane
for profit. Candidate mines in the U.S. include:
Mines with existing methane collection
systems that vent to the atmosphere rtM8»i
Longwall mines
Mines with coal production greater
than 500,000 tons per year
Mines that are expected to operate
for 5 to 10 more years
Up to 25 mines
have such systems
Gassy mines with methane emissions
greater than 500 cubic feet per
PAbout 100 mines
About 100 mines
3 About 1OO mines
new mines
COALBED METHANE RECOVERY...NOT FOR ALL MINES, BUT FOR MANY
Of course, every mine that has these general characteristics will not be able to develop a
profitable methane recovery project. EPA expects that of the approximately 75 candidate
mines, between 15 and 25 will be able to implement profitable projects. Development of
these profitable projects will more than meet the goals of the Climate Change Action Plan!
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FOR MORE INFORMATION...
For more information on coalbed methane recovery experiences, project
potential, or program activities and accomplishments, contact:
Karl Schultz, Coalbed Methane Program Manager
US Environmental Protection Agency
Mail Code 6202J
Global Change Division
401 M Street, SW
Washington, DC 20460
Telephone: 202 233-9468
Facsimile: 202 233-9569
Internet Address: schultz.karl@epamail.epa.gov
Automated Faxback: Call 202 233-9659 and enter 1740
Selected list of EPA Coalbed Methane Outreach Reports:
USEPA (U.S. Environmental Protection Agency). 1994.
Identifying Opportunities for Methane Recovery at U.S. Coal
Mines: Draft Profiles of Selected Gassy Underground Coal
Mines. Office of Air and Radiation (6202J). Washington, DC,
EPA-430-R-94-012.
USEPA (U.S. Environmental Pr.oteetion=rAgen(^.a1994.
The Environmental and EconomicxBenefits ofjGoalbed
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Air and
shin
V" 3
, fee,
USEPA (U.S/Environmental Protection Agency).
Opportunities to'Reduce Arithropogenic'Methane
in the United States^Report to Congress. Office\
Radiation (6202J). Washington, DC, EPA 430-R-93-01
L
USEPA (U.S. Environmental Protection Agency). 1993-
Anthropogenic Methane Emissions in the United States:
Estimates for 1990. Report to Congress. Office of Air and
Radiation (6202J). Washington, DC, EPA 430-R-93-003-
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Information Resources Center
US EPA (3404)
401 M Street, SW /
Washington, DC 20460
Center
401 i.' _,JW
Washington, DC 20460
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Printed on paper (hat contains
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This brochure may be replicated
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