Methane to Markets
U.S. Government Accomplishments in Support
of the Methane to Markets Partnership
September 2006
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U.S. Government Accomplishments in Support
of the Methane to Markets Partnership
October 2006
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
A
Methane to Markets October 2006
Dear Colleagues:
In 2004, the United States, along with 13 other countries,
launched the Methane to Markets Partnership. The goal of this inter-
national public-private Partnership is to reduce emissions of
methane, a potent greenhouse gas, by advancing the development of
projects that recover and use methane as a clean energy source.
Since its inception, the Methane to Markets Partnership has
enjoyed strong support from the highest levels of the U.S. govern-
ment, with President Bush pledging up to $53 million dollars over
five years. Together with our international partners, we have estab-
lished a strong infrastructure for the Partnership and created a
vibrant global community of governments, private sector and non-
governmental organizations, and financing institutions that are committed to promoting
methane capture and use projects worldwide.
Thanks to this commitment and our collective efforts, we are seeing tangible results.
For example, in less than two years, four additional countries have joined the Partnership
and more than 350 private sector and non-governmental organizations have signed on to
participate in the Project Network. More importantly, the Methane to Markets Partnership
is launching projects and activities on the ground that are already reducing methane emis-
sions. This report describes the U.S.-supported projects and activities, and it documents
their contribution to energy security, clean development, and the environment.
As the Chair of the Methane to Markets Steering Committee and as a representative of
the U.S. Environmental Protection Agency, I am very proud of our accomplishments in
supporting the Partnership. I look forward to continued U.S. commitment to the Methane
to Markets Partnership and to working with our public and private sector partners to
develop near-term methane recovery projects that will yield significant economic, clean
energy, and environmental benefits.
Sincerely,
William L. Wehrum
Acting Assistant Administrator, Office of Air and Radiation
U.S. Environmental Protection Agency
Steering Committee Chair, Methane to Markets Partnership
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Executive Summary
T he launch of the Methane to Markets Partnership in November 2004
committed the United States, along with 13 other countries, to
advancing cost-effective, near-term methane recovery and use as a clean
energy source. Public and private sector organizations around the world
are now working together with government agencies to facilitate project
development at agricultural operations, coal mines, landfills, and oil and
gas systems. This collaboration is yielding important benefits, including
enhanced economic growth and energy security, improved air quality
and industrial safety, and reduced greenhouse gas (GHG) emissions.
The U.S. government plays a leading
role in the Partnership. Six major agencies
and departments across the federal gov-
ernment are providing technical expertise
and leadership on the Partnership’s
Steering Committee and subcommittees;
facilitating communication and outreach
activities by serving as the Partnership’s
Administrative Support Group (ASG); and
working with other Partner Countries, the
private sector, and other organizations to
develop and support methane recovery
projects around the world. In fiscal year
2005, the U.S. government provided $5.4
million for Methane to Markets projects
and activities. This contribution has lever-
aged significant resources from other
Partner Countries, development banks,
the private sector, and members of the
Project Network. For example, a coal
mine methane (CMM) project in Jincheng,
China, received funding from the U.S.
government for pre-feasibility and plan-
fling studies and is now set for full-scale
implementation with international invest-
ments totalling $235 million.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
To date, our resources have been used
in creating the foundation for future project
development as well as advancing near-
term methane recovery and use opportuni-
ties. The United States is supporting
technology demonstrations and pre-feasi-
bility and feasibility studies at potential
project sites; addressing market, institu-
tional, and other barriers to project devel-
opment; and building capacity through
technology transfer and training. These
efforts are directly leading to the future
implementation of full-scale projects in
numerous countries, which, if fully imple-
mented, will result in estimated annual
emission reductions of approximately 5
million metric tons of carbon dioxide
equivalent (MMTCO 2 E).
In the landfill sector, the U.S. govern-
ment is developing a global database of
landfill gas (LFG) project opportunities to
help countries and project developers from
around the world identify potential project
sites. In addition, the United States has
trained Russian professionals in LFG proj-
ect development and provided seed fund-
ing for LFG projects in Mexico and Brazil.
These projects are expected to reduce
emissions by 45,000 and 500,000 metric
tons of carbon dioxide equivalent
(MTCO 2 E) per year, respectively.
The Methane to Markets
Partnership Expo, FaIl 2007
The Methane to Markets Partnership Expo
will showcase the Partnership’s achieve-
ments and global opportunities for
methane recovery and use. The event will
provide a forum to:
• Highlight methane capture and use
technologies and services.
• Showcase project opportunities to
potential investors.
• Discuss the key technical, policy, financ-
ing, and regulatory issues related to
project development.
document profiling key coal producing
nations and opportunities for coalbed
methane (CBM) and CMM project develop-
ment. The United States is also compiling
data for a global database on coal mine
project opportunities, providing training in
China, and funding a Ukrainian coal mine
safety and emission reduction project that
is expected to reduce emissions by an esti-
mated 100,000 MTCO 2 E per year.
In the oil and gas sector, the U.S. gov-
ernment, in cooperation with industry part-
ners, is sharing its technical expertise and
In the coal mining sector, the U.S. gov-
ernment has developed a global overview
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
experience by sponsoring technology
transfer workshops in Colombia and
Russia. The United States is also working
with PetrOleos Mexicanos (PEMEX) in
Mexico to launch two pilot projects that
have the potential to reduce methane
emissions by approximately 120,000
MTCO 2 E per year. These efforts not only
bring local project opportunities to the
international community but also build
local capacity to advance project develop-
ment.
The U.S. government is also involved in
an array of demonstration projects in the
agriculture sector, ranging from large
industrial-scale manure waste manage-
ment systems in China to smaller house-
hold- and village-scale systems in Thailand
and Vietnam. As well as methane emis-
sions, these projects will reduce water and
air pollution caused by confined livestock
production and improve public health in
areas that may be affected by livestock
production.
Active involvement by experts from pri-
vate sector entities, financial institutions,
and non-governmental organizations is
essential to the success of the Partnership.
Currently, more than 350 experts from
these organizations are participating as
Project Network members, whose expertise
and experience have been vital to fostering
development of methane capture and use
projects.
In the coming year, the United States
will work to expand collaboration with
Partner Countries and Project Network
members to accelerate methane recovery
and use throughout the world. One impor-
tant focus of these efforts will be to ensure
the successful development of the 2007
Methane to Markets Partnership Expo, an
event that will bring together the invest-
ment, project development, and govern-
ment communities. In addition, the United
States will work with other Partners to
enhance our ability to track our collective
progress and communicate our results.
Sustained effort and focus on methane
recovery and use by the U.S. government,
Partner Countries, and the Project Network
will lead to significant, near-term progress
in reducing emissions. By working collabo-
ratively with the public and private sector,
we can reduce global methane emissions
while developing new sources of clean
energy that provide economic, environ-
mental, and health benefits.
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ttlethane to Markets Partner Countries represent more than 60 percent of the world’s anthropogenic methane emissions.
T he Methane to Markets Partnership
is a multilateral initiative uniting
public and private interests to
advance the recovery and use of methane
as a clean energy source. Currently, 18
national governments and over 350 Project
Network member organizations have joined
the Partnership. By engaging public and pri-
vate sector partners, this initiative brings
together the technical and market expertise,
financing, and technology necessary for
project development.
The Methane to Markets Partnership
focuses on developing projects in four major
methane emission source areas: agriculture,
landfills, underground coal mines, and natu-
ral gas and oil systems. In each of these
areas, cost-effective methane emission
reduction technologies are currently avail-
able to capture and use the methane gas as
a fuel for electricity generation, onsite ener-
gy needs, or offsite gas sales. Despite the
availability of proven technologies and the
benefits of collecting and using this gas
instead of releasing it into the atmosphere,
methane recovery and use is not wide-
spread. In many countries, project develop-
ment has been stymied by legal, regulatory,
financial, institutional, informational, and
other barriers. By addressing these barriers,
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US. Government Accomplishments in Support of the Methane to Markets Partnership
the Partnership will advance methane
recovery and use.
The Steering Committee guides the
work of the Methane to Markets
Partnership. Playing a supporting role is the
Administrative Support Group (ASG), or
secretariat, which is currently housed at
the U.S. Environmental Protection Agency
(EPA). Four subcommittees (Agriculture,
Coal Mines, Landfills, Oil and Gas Systems)
are responsible for the technical work in
each of the Partnership’s target sectors.
These subcommittees have developed
action plans that identify key barriers and
issues for project development, plan the
actions needed to overcome these barriers,
address market assessment and reform
issues, facilitate investment and financing
opportunities, and report on progress to
the Steering Committee.
Each subcommittee operates as a part-
nership between government representa-
tives and the Project Network, which
comprises private sector entities, financial
institutions, and other governmental and
non-governmental organizations. The
Methane to Markets Partnership encour-
ages the active involvement of the Project
Network in all meetings and activities of
the Partnership as a means of building
capacity, transferring technology, and pro-
moting private investment. To this end, the
Partnership’s Project Network serves as an
informal mechanism to reach out to and
facilitate communication and coordination
among these organizations.
To date, over 350 organizations have
joined the Partnership. Currently, about half
of the Project Network members are U.S.-
based companies with an interest in
expanding business opportunities interna-
tionally.
The Methane to Markets Partnership
expects to achieve significant economic,
environmental, and energy benefits. The
United States estimates that by 2015, the
Partnership could be delivering annual
reductions in methane emissions of up to
180 MMTCO 2 E. This is the equivalent of
recovering 500 billion cubic feet of natural
gas. If achieved, these reductions could
lead to stabilized or even declining levels
of global atmospheric concentrations of
methane. These reductions would be
equivalent to the annual emissions from
33 million cars or 50 500-megawatt (MW)
coal-fired power plants.
Why Is Methane Important?
Methane (CH 4 ) is a hydrocarbon aixi the
primary component of natural gas. It is also
a potent GHG that is over 20 times as effec-
tive at trapping heat in the atmosphere as
carbon dioxide (C0 2 ). Methane also has a
much shorter atmospheric lifetime than
CO 2 (about 12 years compared to about
200 years). As a result, reducing methane
emissions can achieve significant climate
benefits over the next 25 years.
Methane accounts for 16 percent of all GHG
emissions globally, with about 60 percent
of total methane emissions coming from
anthropogenic (human-related) activities,
including agriculture (manure waste and
enteric fermentation), rice cultivation, coal
mining, landfills, and oil and natural gas
systems. Non-anthropogenic sources
include wetlands, gas hydrates, permafrost,
and termites.
For many of the major emission sources,
collection and utilization of methane is pos-
sible using currently available technologies.
Methane recovery and use provides multi-
ple environmental, energy, and economic
benefits by capturing a valuable, clean-
burning fuel while reducing GHG emissions.
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I n support of the Methane to Markets
Partnership, the United States has com-
mitted up to $53 million over a 5-year
period to facilitate the development and
implementation of methane projects in
both developing countries and countries
with economies in transition. The U.S. gov-
ernment funding is implementing a range
of activities, such as the export 01 the suc-
cessful U.S. voluntary programs (see side-
bar), training and capacity building, market
development, feasibility assessments, and
technology demonstrations. Central to the
U.S. commitment will he leveraging the
efforts of fdlow Partner Countries along
with the expertise and investment of the
United States and the international private
sector.
U.S. government effOrts under the
Methane to Markets Partnership are led by
EPA ind involve the collective etlOrts of six
agencies and departments across the fed-
eral government. Each organization plays
an iniportant role in the Partnership and
provides unique expertise.
EPA is the lead U.S. agency
and is coordinating and
administering Partnership
activities, both domestically
kind interndtionally. EPA plays a lead
technical role through the international
expansion of its domestic methane part-
nership programs, in addition to hosting
the ASG.
EPA’s Voluntary Domestic
Methane Partnership Programs
Over the past decade, EPA has initiated
several successful voluntary programs to
find cost-effective ways to reduce
methane emissions. These programs help
public and private sector partners over-
come a wide range of informational, tech-
nical, and institutional barriers to
reducing methane emissions while creat-
ing profitable opportunities for the agri-
cultural, coal, landfill, and oil and natural
gas industries. As of 2004, these programs
have been successful in helping the
United States reduce methane emissions
10 percent below 1990 levels. For more
information on EPA’s domestic methane
reduction programs, please visit
www.epa.gov/methane/voluntary.htmt.
U.S. Depar rnent ol Stale
ensures that the U.S. partici
0
pation in the Methane to
Markets Partnership is comple-
mentary and consistent with U.S. inter
national policy objectives. The State
Department coordinates with Partner
Countries to help build a commitment it
all levels of government to ictively sup-
port and promote Methane to Markets.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
FROM THE AMERICAN PEOPLE
o U.S. Agency for
International
Development
(USAID) provides important technical
expertise in the economic reform of
energy sectors to create markets that
support private sector projects in devel-
oping countries. USAID funds and pro-
vides technical expertise to support
methane capture and use projects
through its programs and network of
international offices.
o U.S. Department of Energy
(DOE) has valuable expertise ‘
in natural gas and CMM and ‘.
funds the International Utility
Efficiency Program (LUEP), which in turn
supports methane projects.
o U.S. Trade and Development
Agency (USTDA) facilitates
development in emerging
markets by promoting U.S.
partnerships in overseas projects. To this
end, USTDA funds various forms of
technical assistance, feasibility studies,
training, orientation visits, and business
workshops that support the develop-
ment of modem infrastructure, an
open trading environment, and U.S.
technology export.
U.S. Department of USDA
Agriculture (USDA) pro-
vides technical expertise
in animal waste management and pro-
motes methane recovery and use in the
agriculture sector.
An important focus of U.S. efforts is to
build partnerships and leverage resources
to stimulate investment from the private
sector. In fiscal year 2005, the U.S. govern-
ment provided $5.4 million for Methane to
Markets projects and activities. To date,
investment in methane projects that have
been supported at some stage by the U.S.
government is more than $235 million
(see Figure 1).
* Leveraged finds include financial support provided for activities by non-U.S. government entities, including other national govern-
ments or Project Netvvork members. They also include project investment through loans or other financing instruments.
U.S. Government Funding and Leveraged Funding *
Leveraged
Funding
Total USG
Funding
(FY2005)
Millions $50 $100 $150 $200 . $250
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T he United States, in cooperation
with Methane to Markets Partner
Countries and Project Network
members, has participated in the
Partnership’s subcommittees to develop
action plans to guide the implementation
of activities and projects in the target sec-
tors. These action plans identify and
address key barriers and issues for
methane recovery and use, address market
assessment and reform issues, facilitate
investment and financing opportunities,
and report on progress to the Steering
Committee.
U.S.-backed projects and activities
directly support the action plans and focus
on promoting project development in
developing countries and those with
economies in transition, including Brazil,
China, Colombia, India, Mexico, Russia,
and Ukraine (see Figure 2).
Figure 2
FY2005 Funds by Recipient Country
Global/Regional
[ 15%
\ Brazil
Ukraine \ 10%
45%
I China
/10%
\ CoIombia
Mexico India 1%
10% 7%
U.S. efforts are targeting near-term
methane recovery and use project develop-
ment by using partnerships and employing
innovative approaches that leverage U.S.
expertise and yield measurable results. U.S.
activities are focused in the following
areas:
Training and Capacity Building—
Creating the institutional, financial, and
technical knowledge and infrastructure
necessary to ensure successful short-
and long-term project development.
Russia
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
ecnnoiogy Demonstration and
Deployment—Showcasing available,
cost-effective methane recovery and use
technologies and facilitating their adop-
tion in the global marketplace.
Market Development and Finance—
Ensuring the development of fully func-
tional financial and energy markets,
addressing legal and regulatory barriers
to project development, and matching
available investment to sound project
opportunities.
• Project Development and
Implementation—Identifying and char-
acterizing specific project opportunities
and providing technical assistance to
ensure successful development.
• General Partnership Support—Providing
support for the ASG, outreach and
communication, and meetings.
Figure 3 provides a summary of U.S.
government-supported activities under the
Methane to Markets Partnership in FY2005.
Figure3
U.S. Government Contributions
by Type of Activity (FY2005)
Training and
Capacity Bulding
20%
($1,086,000)
General Partnership — -
Support
7%
($358,600)
Project
Development
and
Implementation
44%
($2,396,000)
Technology
Demonstration
and
Deployment
28%
($1,500,000)
Market Development and Finance
1%
($65,000)
‘4
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Agriculture
The agriculture sector is the newest sec-
tor in the Partnership. Efforts in this area
focus on capturing methane being released
from liquid animal waste management sys-
tems and using it as a clean energy source
to produce electricity. Gas-fired equipment
such as engines, boilers, or chillers can be
used to meet a portion of a farms energy
requirements. The U.S. government has
already been an active participant in the
agriculture sector, working to identify and
implement improved technologies and
management practices and promoting eco-
nomically viable projects in targeted geo-
graphic regions across the globe. As
activities in the agriculture sector gain
momentum, the U.S. government is poised
to make significant contributions. Some
key activities and accomplishments in this
sector are described below.
Livestock Waste Management in
East Asia
EPA is providing technical support to a
project promoting livestock waste manage-
ment in East Asia. The Global Environment
Facility and the World Bank are providing a
$7 million grant over 5 years to support a
comprehensive approach to reduce the sig-
nificant environmental and health impacts
T
Methane to Markets Expands
to Realize Opportunities in
Agriculture
In November 2005, the Partnership
established a new Agriculture
Technical Subcommittee to promote
methane capture and use opportuni-
ties in livestock waste management.
EPA, USAID, and USDA will play active
roles on this subcommittee by identi-
fying project opportunities; assisting
with the development of the action
plan; and recruiting participants from
the private sector, development
banks, and other governmental and
non-governmental organizations.
from increasingly concentrated livestock
production in China, Thailand, and
Vietnam. This project integrates policy
development and implementation, techno-
logical solutions, capacity building, and
regional connections. The grant supports
demonstration of cost-effective livestock
waste management techniques at selected
farms in these countries.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
An array of projects are under develop-
ment, ranging from large, modern methane
recovery and waste stabilization systems in
China, to smaller household and village-
scale systems in Thailand and Vietnam.
Multimedia-based, these projects reduce
water and air pollution caused by confined
livestock production. They also improve
public health through the biological treat-
ment of fecal material with anaerobic
digestion technologies. These technologies
are designed to recover methane that is
used in energy applications such as elec-
tricity generation, lighting, cooking, shaft
power, and water pumping.
L)emonsrrarion i-arms in iviexico
USAID and EPA are working with the
government of Mexico to develop a set of
demonstration projects to showcase best
practices for the capture and use of
methane in large- and small-scale pig
farms. EPA will train participants to install
and operate biogas recovery systems and
to use biogas in energy applications such
as electricity generation, lighting, cooking,
and water pumping. The lessons learned
from these initial demonstration projects
will be incorporated into planning efforts
for upcoming demonstration farms in Latin
America. The projects demonstrate tech-
nologies to reduce water and air pollution
caused by confined livestock production,
thereby improving public health in affected
areas.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Coal Mining
Methane gas released due to coal min-
ing can be captured and used as a clean
energy source, yielding significant energy,
environmental, and mine safety benefits.
The United States remains a global leader
in the CBM and CMM sector and is working
with partners to share expertise, informa-
tion, and technology to advance project
development. Some key U.S. activities and
highlights in the coal mine sector include:
Coal Mine Safety and Emission
Reductions in Ukraine
USAID provided $1.5 million in funding
to the Partnership for Energy and
Environmental Reform (PEER)—a non-
governmental organization—and RE!
Drilling—a U.S.-based drilling company—to
implement the Coal Mine Safety Program.
PEER and REt purchased a U.S.-manufac-
tured horizontal drill for use at two
Ukrainian mines to demonstrate safe
drilling techniques and to train Ukrainian
crews on how to maintain and operate
such equipment. After the training, the drill
will remain in Ukraine and will be used to
drill drainage holes at other mines in the
country. The program is being managed by
the U.S. Department of Labor and counter-
parts in Ukraine, including the Ministry of
Coal, the State Committee on Labor Safety,
and selected mines. This project is expect-
ed to yield potential emission reductions
equivalent to 100,000 MTCO 2 E per year
and contribute to increased coal mine safe-
ty and decreased coal mine mortality.
EPA initiated a 3-year project with the
United Nations Economic Commission for
Europe to address financial barriers in the
development, promotion, and sale of CMM
recovery and use projects in Eastern
Europe. Beginning in Russia, sector experts
will organize workshops and provide sup-
port to coal mine staff to develop bankable
documents and project-specific business
UNECE Project to Facilitate
Project Financing
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
plans to encourage investor interest in sev-
eral mines. The workshops will provide a
model to be replicated in countries
throughout the region.
Technology Transfer in China and India
China has some significant opportuni-
ties for CMM projects. EPA co-sponsored a
workshop in Beijing in December 2005
along with the Australia Greenhouse
Office, Japan’s New Energy and Industrial
Development Organization, and the
People’s Republic of China State
Administration of Worker Safety to share
cost-effective technologies with staff from
Chinese mines. The workshop featured
presentations on CMM utilization and miti-
gation technologies; resource, economic,
and risk assessment strategies; and experi-
ences at specific Chinese mines.
EPA provided technical and financial
support to help establish the China Coalbed
Methane Clearinghouse in 1994 and has
provided technical and financial support
to the Clearinghouse since that time.
The China Coal Information Institute,
which manages the activities of the
Clearinghouse, serves as a focal point for
foreign and domestic investors and project
developers to gather data and information
regarding project opportunities for
methane capture and use.
Using the experience in China as a
model, EPA and USTDA plan to work with
the India Ministry of Coal and the India
Ministry of Petroleum and Natural Gas
to establish a similar CBM and CMM
Clearinghouse in India. The development
of this information center will help to
increase India’s base of clean energy
resources and improve mine safety.
‘i/
World’s 9
Largest
Methane Project to Be
Coal Mine
Implemented in China
Caterpillar, Inc., was recently awarded a
contract to supply all the power gener-
ation equipment for the worlds largest
CMM-fueled power plant. Under this
contract, Caterpillar will provide 60 gas
generator sets—manufactured in
Lafayette, Indiana—to the Jincheng
Anthracite Coal Group in Shanxi
Province, China. This pov er plant will
produce 120 MW of electricity plus
heat that will be recovered to produce
usable hot water/steam (i.e., combined
heat and power) for mining operations.
Over the 20-year lifetime of this project,
it is estimated, 40 MMTCO 2 E emissions
will be avoided. The full-scale imple-
mentation of the project involves a
total investment of $235 million and
is being financed by Japan Bank for
International Cooperation, Asian
Development Bank, the Jincheng
municipal government, and the
World Bank Prototype Carbon Fund.
USTDA provided a $500,000 technical
assistance grant to support the
mine during the final design and
procurement phase. EPA provides
support to the China Coalbed
Methane Clearinghouse, which is
housed within the China Coal
Information Institute (CCII).
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Landfills
Capturing and using methane emitted
from landfills is a reliable and renewable
fuel option that represents a largely
untapped environmental and energy
opportunity at thousands of landfills
around the world. Many nations lack
essential information about their landfill
gas-to-energy potential as well as the fund-
ing and technical expertise necessary for
project development. The United States is
working with its partners to ensure that
more LFG reaches energy markets. The
U.S. government is providing expertise in
landfill data collection, developing techni-
cal capacity, and funding pre-feasibility
studies to catalyze projects. Some of the
U.S. governments support activities and
accomplishments are highlighted below.
Promoting LFG Projects in Latin America
EPA collaborated with tl e World Bank
to host the Latin American LFG Project
Expo in July 2005, in Montevideo, Uruguay.
The objective of the event was to discuss
the pre-feasibility study results for 10 Latin
American landfills developed by the World
Bank with financial support from the
Canadian International Development
Agency (CIDA). The goal of the Expo was
to encourage landfill representatives from
the 10 sites to engage the private sector to
seek investment opportunities for LFG proj-
ects. At least five of the 10 landfills fea-
tured at the event are proceeding to
implement full-scale methane recovery
projects.
Identi5’ing Landfill Gas-to-Energy
Project Opportunities
EPA has spearheaded development of a
global database of disposal sites and LFG
project opportunities in Partner Countries.
The database will identify landfill candi-
dates for technical evaluation, project
development opportunities, and investment
opportunities.
The database will be launched by 2007
on an easily accessible, Web-based plat-
form enabling project developers from any
country to easily identify LFG project
opportunities and bring more projects
online quickly. This will present a crucial
tool for the 2007 Partnership Expo,
enabling project owners to overcome some
of the key challenges to landfill project
development.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Landfill Gas-to-Energy Training and
Capacity Building
A major barrier to project development
in the landfill sector is a lack of knowledge
about the opportunities and benefits of LFG
capture and use projects by local landfill
operators and municipalities. To overcome
this barrier and build local capacity in
Partner Countries, EPA developed and co-
sponsored a number of workshops and
training seminars on landfill methane
recovery, project planning, technology
options, and financing. Some of these
included:
• A 2-day LFG workshop in Moscow in
May 2005, which attracted more than 80
solid waste professionals from the
region.
• LFG workshops in Delhi and Mumbai,
India, in March 2006, co-sponsored by
the Federation of Indian Chambers of
Commerce and Industry (FICCI).
Landfill Gas-to-Energy in Brazil
In Brazil, 84 percent of methane emis-
sions come from municipal solid waste.
Landfills across Brazil have an estimated
overall generation rate of 303 to 578 mil-
lion cubic meters per year, capable of pro-
viding 60 to 144 MW of electricity.
Nevertheless, very little methane is recov-
ered from landfills. USAID is supporting the
implementation of a LFG-fired power plant
in the city of Fortaleza, Ceará State. As part
of this project, USAID is providing technical
assistance, conducting a feasibility study,
promoting social inclusion activities to
benefit the communities of waste scav-
engers living at the landfill surroundings,
and organizing a workshop directed to
other municipalities that have landfills with
Landfill Gas Project
Development in Mexico
On March 24, 2006, EPA, USAID, and
the Mexican Secretariat of
Environment and Natural Resources
(SEMARNAT) signed a Letter of
Cooperation stating their commit-
ment to collaborate on Methane to
Markets activities in Mexico. Under
this agreement, two landfills along
the U.S.-Mexico border were identi-
fied for project development. These
agencies, in addition to the North
American Development Bank, and
the Border Environmental
Cooperation Commission, subse-
quently visited the cities of Nuevo
Laredo and Ensenada to gather more
information and meet with local
officials.
These LFG projects are expected to
reduce emissions by more than
45,000 MTCO 2 E each year. USAID esti-
mates that annual emission reduc-
tions of more than 300,000 MTCO 2 E
could be achieved if projects are
implemented in the 14 most impor-
tant landfills in the region.
Replication of similar landfill projects
on a national scale could reduce GHG
emissions by 3 MMTCO 2 E per year.
potential use for methane recovery. As a
result of this project, an amount equivalent
to 2.5 MMTCO 2 E emissions will be avoided
from 2007 through 2012.
H
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
Methane is emitted from oil and gas
systems as a result of normal operations,
routine maintenance, and system disrup-
tions. These emissions can be reduced by
upgrading technologies or equipment and
by improving management practices and
operational procedures. U.S. technical
expertise and leadership in this sector
is well recognized around the world.
In support of the Methane to Markets
Partnership, the U.S. government is sharing
its technical expertise and experience and
working with governments and the private
sector to identify and share best practices
and cost-effective techniques for reducing
methane emissions, improving system effi-
ciency, and delivering more gas to market.
Some of the U.S. government’s accom-
plishments in this sector include:
Project Development in Mexico
In 2006, USAID funded two pilot proj-
ects with PEMEX, Mexico’s state-owned oil
company, with significant potential for
methane emission reductions. These proj-
ects will upgrade compressors used in the
gas pipeline transmission system and
implement a technology that captures fugi-
tive gas emissions from oil storage tanks.
Implementing these two technologies will
result in estimated annual emission reduc-
tions of just over 120,000 MTCO 2 E. As a
first step, PEMEX and USAID are currently
gathering baseline measurements at select-
ed locations. PEMEX is also conducting a
larger, company—wide analysis to inventory
all oil and gas process components and
equipment—including wells, dehydrators,
pneumatic controls, and valves—and
measuring their effectiveness. These
pilot projects will shed light on project
opportunities in Mexico and serve as
model procedures and best practices for
other Methane to Markets countries. It is
estimated that replication of the pilot proj-
ects and other methane emission reduc-
tions measures throughout PEMEX can
result in lowering annual emissions by
more than 4 MMTCO 2 E.
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
and Russia
To facilitate project development in
the oil and natural gas sector, EPA has
coordinated and co-sponsored a number
of technology transfer workshops on cost-
effective emission reduction technologies
and pipeline maintenance and repair.
Some of these included:
• A 2-day workshop in Bogota, Colombia,
in October 2005, co-sponsored by the
Colombian Ministries of Energy and
Environment and Occidental Petroleum.
This workshop consisted of a series of
presentations by oil and natural gas
experts. As a direct result of the event,
EPA is working with private industry to
develop a methane emission reduction
project in Latin America. Attendees have
also approached EPA to promote similar
events in other Methane to Markets
Partner Countries, which EPA is actively
pursuing.
• A 3-day workshop in Tomsk, Russia, in
September 2005, hosted by the Russian
Academy of Sciences. The workshop
focused on identifying and quantifying
oil and gas methane emissions from
the Russian and Ukrainian oil and natu-
ral gas industry.
(
)
Leak Reduction
Project in Ukraine
Ukraine has the second largest natural
gas transmission system in Europe—
35,000 kilometers long, with 171 com-
pressor stations—and a large
potential for methane emission reduc-
tion projects. Cherkasytransgas, one
of the six Ukrainian gas transmission
companies, recently won a grant from
IUEP to evaluate and implement
methane emission reduction tech-
nologies and practices at all 23 of its
compressor stations. The project will
provide an excellent model of best
management practices on Soviet
equipment for other Byelorussian,
Russian, and Ukrainian natural gas
companies.
Government Industry Partnerships to
Reduce Emissions
The Natural Gas STAR program is a flex-
ible, voluntary partnership between EPA
and the U.S. oil and natural gas industiy.
Through the Program, EPA works with
companies that produce, process, transmit,
and distribute natural gas to identify and
promote cost-effective methane reduction
opportunities. Because of the growing
importance of global GHG emission reduc-
tions and the development of the Methan
to Markets Partnership, EPA is launching
the Natural Gas STAR International
Program, expanding its domestic focus to
work with Methane to Markets Partner
Countries and international gas companies
to identify methane emission reduction
opportunities worldwide.
Technology Transfer in Colombia
21
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T he U.S. goverilittein. is cuiniriitieu to
remaining a world leader in sup-
porting methane capture and use
projects through the Methane to Markets
Partnership. In 2006, the U.S. government
plans to commit up to $12 million to
Methane to Markets activities and projects.
Our efforts in 2006 and beyond will focus
on the following guiding goals and objec-
tives:
• Developing projects that achieve direct
and rapid methane emission reductions.
The United States will continue to iden-
tify potential project opportunities and
provide funding for pre-feasibility and
feasibility studies for methane projects
in all four sectors. By providing this up-
front capital for initial site characteriza-
tions, we will continue to expand the
number of high-quality methane project
opportunities available for private sector
investment. As project opportunities
ecome avallaDle, tne unitea states will
work to facilitate full-scale project
implementation in cooperation with the
private sector and development banks.
The United States is already planning to
conduct pre-feasibility studies for a
number of landfills in Argentina, Brazil,
China, and Ecuador and to identify addi-
tional project opportunities in the oil and
gas sector in Colombia, Ecuador, Russia,
and Ukraine. In the coal sector, the
United States will be supporting pre-fea-
sibility studies for CMM projects for
mines in Argentina, Mexico, Russia, and
Ukraine and will be funding a feasibility
study for a ventilation air methane proj-
ect in China.
• Building capacity, providing training,
and overcoming technical, policy, and
market barriers. The United States will
focus on overcoming the barriers to
project development in each sector and
Partner Country. A key element of this
effort is building in-country expertise
and capacity through training, technolo-
gy demonstrations, and supporting in-
country information clearinghouses. For
example, in the coal sector, the United
States will continue to provide financial
and technical support for the China
Coalbed Methane Clearinghouse, and
plans to launch a similar CBM/CMM
Clearinghouse in India. In addition,
training events are being planned in
India that will cover the oil and gas and
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
landfill sectors. We are also planning
a study tour for Russian oil and gas
experts in collaboration with Japan. A
similar study tour covering the oil and
gas sector is planned for Ecuador, and
LFG workshops also are being planned
for Mexico and Ukraine. The United
States is developing technical docu-
ments and tools that will provide infor-
mation to facilitate project development
over the long term. Examples include a
project database of all ongoing CMM
projects worldwide, a paper on regulato-
ry issues and barriers to CMM projects,
translation of key technical documents
in the landfill sector, and development
of a series of “Lessons Learned” docu-
ments for LFG projects.
Planning the Methane to Markets
Partnership Expo. The U.S. government,
through its role acting as the ASG, will
be organizing logistics and programs for
the Expo in 2007 along with the host
Partner, China. The goal of the Expo is a
near-term focal point for the Methane to
Markets Partnership’s goal of matching
projects and technologies to the interna-
tional investment community. The
United States will provide funding for
project site managers to attend the Expo
so that they can market project opportu-
nities to investors and secure funding for
full-scale implementation.
Tracking the progress of the Partnership.
The U.S. government is working with its
public and private sector partners to
establish and implement a comprehen-
sive, Web-based, publicly accessible
database to track project opportunities
and results. Over the long term, this sys-
tem will be used to track the results of
this initiative and the emission reduc-
tions that result from it.
Expanding participation in the Project
Network. Project Network members
provide hands-on expertise in a
range of fields and are integral to the
Partnerships success. With approxi-
mately half of the current Project
Network members based in the United
States, we will be working with mem-
ber countries to share successful
recruiting strategies and help expand
international participation.
The United States looks forward to
continuing to report on the collective
successes of this important partnership,
which promises significant economic,
clean energy, and environmental benefits
throughout the world.
— .
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S S ____
-artnership Milestones
2004
July
President Bush announces the intent to begin a voluntary, international effort to create
clean energy solutions to global methane emissions
November
The World Bank Group joins as a Project Network member
The Methane to Markets Partnership is launched at a ministerial meeting in Washington, D.C.; 14 national govern-
ments sign on as partners, committing to work collaboratively to minimize methane emissions from key sources
for capture and use projects, especially in developing countries and countries with economies in transition
2005
May
Project Network members total 100
June
South Korea joins the Methane to Markets Partnership
Private Sector Outreach Workshop, Washington, D.C.
Landfill Methane to Markets Workshop, Moscow, Russia
July
Project Network members total 150
Canada joins the Partnership
Asia-Pacific Partnership on Clean Development and Climate announces its support for voluntary,
practical measures to foster methane captureand use projects
September
Oil and Gas Methane Emissions Reduction Workshop, Tomsk, Russia
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U.S. Government Accomplishments in Support of the Methane to Markets Partnership
October
Methane Emissions Reduction Workshop, Bogota, Colombia
November
Ecuador joins the Methane to Markets Partnership
International Solid Waste Association joins the Project Network
Project Network members total 200
2nd Annual Methane to Markets Meeting, Buenos Aires, Argentina
December
Methane to Markets Coal Mine Methane Regional Workshop, Beijing, China
2006
March
Landfill Gas to Energy Workshop, Delhi, India
Mexico and the United States collaborate to energize Methane to Markets projects:
U.S. agencies and Mexicos SEMARNAT formalize commitment
April
Petróleos Mexicanos (PEMEX) hosts Oil and Gas Technology Transfer Workshop, Villahermosa, Mexico
May
Methane to Markets exhibits at Carbon Expo 2006, Cologne, Germany
Project Network member Caterpillar Inc. announces contract to provide engines for
worlds largest Coal Mine Methane project in Shanxi Province, China
June
Project Network members total 300
July
Germany joins the Methane to Markets Partnership
Novemoer
Launch of Natural Gas STAR International Program
2007
October
Methane to Markets Partnership Expo, Beijing, China
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