United States
Environmental Protection Agency
Office of Air and Radiation
6207-1
EPA-430-N-00-004
Summer 2010
COALBED METHANE EXTRA
A publication of the Coalbed Methane Outreach Program (CMOP)
www.epa.gov/cmop
EPA Issues Final Rule on Mandatory Reporting
of Greenhouse Gases from Underground Coal Mines
On June 28, 2010, the U.S. Environmental Protection Agency
(EPA) issued a final rule that requires annual greenhouse gas
(GHG) emissions reporting from four source categories, includ-
ing underground coal mines (Subpart FF). This reporting rule
amends the Mandatory Reporting of Greenhouse Gases Rule (40
CFR part 98), published on October 30, 2009. Implementation of
part 98 of the Mandatory Reporting of Greenhouse Gases Rule is
referred to as the Greenhouse Gas Reporting Program (GHGRP).
This action also announced EPA's final decision not to include
suppliers of coal in 40 CFR part 98 at this time.
Under Subpart FF of the Greenhouse Gas Reporting Program
(GHGRP), owners or operators of facilities that are subject to
quarterly or more frequent sampling of mine ventilation systems
by the Mine Safety and Health Administration (MSHA) must re-
port emissions from underground coal mines and all other
source categories located at the mine for which methods are
defined in the rule. Owners or operators are required to collect
emission data; calculate greenhouse gas (GHG) emissions; and
follow the specified procedures for quality assurance, missing
data, recordkeeping, and reporting.
This source category consists of both underground mines under
development and underground mines categorized by MSHA as
active (where coal is currently being produced or has been pro-
duced within the previous 90 days). It includes all underground
coal mines that have operational pre-mining degasification sys-
tems. Abandoned (closed) mines, surface coal mines, and post-
coal mining activities (e.g., storage or transportation of coal) are
not included in this source category.
Underground coal mines subject to Subpart FF must begin moni-
toring GHG emissions on January 1, 2011, in accordance with the
methods specified in the subpart. The first reports are due to
EPA on March 31, 2012, for emissions during 2011, and annually
thereafter.
See GHG Reporting Rule for Coal Mines on page 4
In this issue...
1&4 EPA GHG Reporting Rule for Coal
1 4 Developing VAM Projects
4 Methane to Markets Update
5 7 CBM/CMM News
8 New Publications
9 Upcoming Events
10 2010 U.S. CMM Conference
Access documents electronically from the
"Documents, Tools, and Resources" pages
on our Web site at
www.epa.gov/cmop
To subscribe to CBM Extra and CBM
Notes, please go to our website
www.epa.gov/cmop/join/index.html
and register for our mailing list. You will
be added within two weeks.
VAM Projects in the U.S. and China Move Ahead
The development of several coal mine methane (CMM) capture projects using
ventilation air methane (VAM) destruction technology has recently been an-
nounced in the U.S. and China.
The increased global use of VAM technology is important in worldwide methane
mitigation efforts, as VAM constitutes the largest source of methane emissions at
most underground coal mines.
VAM is produced when methane stored in coal seams is released into mine work-
ings during the mining process, and is then diluted with large volumes of ventila-
tion air circulated through the mine. Methane is explosive in concentrations of 5-
15% in air, so methane concentrations are typically diluted to below 1.5% (and
the resultant VAM is exhausted to the surface).
VAM flow rates are high, not only wasting a clean energy resource but also con-
tributing significantly to global greenhouse gas (GHG) emissions. Methane has a
global warming potential 23 times that of carbon dioxide and any successful de-
ployment of technologies that mitigate VAM emissions can result in substantial
GHG emission reductions. Several such VAM abatement projects, currently in
development, are discussed in the following sections.
See VAM Projects on page 2
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Summer 2010
Page 2
COALBED METHANE EXTRA
VAM Projects in the U.S. and China Move Ahead
VAM PrOJeCtS,/rompogei
McElroy Mine, West Virginia, U.S.
In north-western West Virginia, CONSOL Energy Inc., together
with Verdeo Group, Inc., have announced plans for the first
project to destroy VAM emissions at an active West Virginia
coal mine.
The project, which will be located at CONSOL's McElroy mine in
Marshall County, is intended to demonstrate significant reduc-
tions in methane emissions, in a safe and proven manner, and
without any impact on mine operations or production. It will be
the first time the Durr oxidizer technology will be deployed at
an active coal mine in the United States, and will be among the
largest such projects of its
kind in the U.S. to date.
The McElroy mine, cur-
rently the largest under-
ground coal mine in the
U.S. with annual produc-
tion close to 10 million
tons of coal, produces
nearly 6 percent of national VAM emissions. The methane cap-
tured and destroyed by this project is expected to be equivalent
to 1 percent of total U.S. VAM emissions.
CONSOL will co-develop the project with Verdeo, which pro-
vides capital and project development solutions to mining and
oil and gas companies. For this project, Verdeo is also backed by
Black River Asset Management, an independently managed
subsidiary of Cargill Inc. An estimated 230,000 tonnes of CO2
equivalent (tCO2e) will be destroyed annually at the McElroy
mine.
The carbon offset credits will be registered with the Climate
Action Reserve (CAR), a leading pre-compliance certification
program in the U.S. High quality offsets, verified by a third party
such as CAR, are certified as "additional" -that is, as reductions
that wouldn't have happened in the absence of the carbon mar-
ket. CAR developed and approved such a verification protocol
for CMM offsets in 2009.
The carbon offset credits are sold in the carbon trading market
that has developed in advance of the anticipated regulation of
GHG emissions. Based on current prices for CAR offsets of $5-7
per tCO2e, the $5 million project cost will be returned in three
to four years, according to Verdeo's Managing Director Jeff Lie-
bert. Offset income generated beyond that point will be shared
between CONSOL and Verdeo.
The project will utilize regenerative thermal oxidation (RTO)
technology from the German manufacturer, Durr, to oxidize
VAM, and convert it to water and CO2. RTO technology is well
established in the chemical and other industries where the
Clean Air Act regulates volatile emissions. The McElroy mine
VAM project will test the ability to use Durr equipment on a
commercial scale in the coal mining sector. The project follows
a successful VAM destruction demonstration project by CON-
SOL (using MEGTEC VOCSIDIZER technology) at the abandoned
Windsor mine, also in northern West Virginia.
Durr's two-chamber RTO unit is preheated to about 800 de-
grees Celcius. VAM, ranging in concentration from 0.3 to 1.2
percent, is drawn from coal mine exhaust fans into the first oxi-
dation chamber. The oxidation process generates heat and as
one chamber becomes too hot, a valve in the intake switches
incoming VAM to the opposite chamber. After initial pre-
heating, the process is self-sustaining.
f-mul Outran Omitm
"Companies will require a wide range of tools and incentives to
effectively reduce GHG emissions," said Steve Winberg, CON-
SOL's Vice President of Research and Development. "CONSOL
Energy has committed to utilize as much of its coal mine meth-
ane resources as possible. This project will allow us to abate a
dilute source of methane that has no commercial value and
would otherwise be vented into the atmosphere." CONSOL sees
possible additional projects in the future. "This project is a step-
ping stone to utilizing this commercially available equipment on
our other mines, reducing our overall methane emissions and
potentially creating carbon offsets," said Winberg.
See VAM Projects, on page 3
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Summer 2010
PageS
COALBED METHANE EXTRA
VAM Projects in the U.S. and China Move Ahead
VAM PrOJeCtS,/rompoge 2
Development efforts between CONSOL and Verdeo are under-
way with the McElroy mine CMM project expected to become
operational in the summer of 2011.
Sources: CONSOL: PURR: Kasev
Enlow Fork Mine, West Virginia, U.S.
Consol is also moving ahead with another VAM abatement pro-
ject at the Enlow Fork Mine in southwestern Pennsylvania. De-
veloped with Green Holdings Enlow, Inc, the project is designed
to reduce the mine's VAM emissions by the equivalent of
190,000 tCO2e a year and is planned to be operational in the
second half of 2010.
The project is currently going through the process of obtaining
the requisite local and state perm its for the installation of the
VAM equipment. No decision has yet been made on which VAM
technology will be used at the project.
Jim Walter Resources' No. 4 Mine, Alabama, U.S.
VAM technology, manufactured by Biothermica, has been in-
stalled at the Jim Walter Resources' No. 4 Mine in Alabama for
the past year and the VAM abatement project has recently regis-
tered its first carbon credits with the Climate Action Reserve
(CAR). This is the first coal mine methane project to be regis-
tered with this recognized offsets program.
"The rigorous and regulatory-quality protocols of the Climate
Action Reserve ensure that greenhouse gas emissions reductions
are accounted for in a conservative, accurate and comprehen-
sive methodology," stated Gary Gero, President of CAR.
Featuring Biothermica's VAMOX® system, the demonstration
project has generated 25,931 Climate Reserve Tonnes (CRTs)
during its first year of operation, covering March 2009 to March
2010. Following this initial ramp-up period, production is ex-
pected to reach approximately 35,000 carbon offset credits each
year.
'The registration of these first credits from a VAM oxidation pro-
ject in America is the last step in proving the viability of our inno-
vative coal mine methane abatement solution" said Guy Drouin,
President of Biothermica. "Biothermica's integrated team deliv-
ers on all aspects of VAM projects, from the feasibility study to
the technology and the monetization of the carbon credits. Bio-
thermica is proud to have registered these credits under one of
the most stringent programs in the United States."
Building on this achievement, Biothermica plans to develop
similar ventures with other mines and create value from their
VAM. Biothermica seeks to get involved as a risk sharing part-
ner and sponsor of VAM oxidation projects, thereby allowing
mines to focus on their primary activity.
Source: Biothermica
Datong Mine, Chongqing municipality, China.
MEGTEC Systems has recently announced that its China sub-
sidiary has been contracted to build the largest plant in the
world to capture and eliminate ventilation air methane (VAM)
from the Datong coal mine in China's Chongqing municipality.
The agreement was formally signed between MEGTEC and a
three-way joint venture partnership comprised of AES Climate
Solutions Asia (a wholly owned subsidiary of AES Corporation),
Shenzhen Dongjiang Environmental Renewable Power Com-
pany Ltd., and Songzao Coal and Chongqing Electricity Com-
pany Ltd., a wholly owned subsidiary of Chongqing Energy In-
vestment Group.
Plans call for the Datong mine VAM system to be operational
later this year. It will utilize MEGTEC's VOCSIDIZER® technology
to eliminate about 97 percent of the meth-
ane within the captured exhaust stream
before it enters the atmosphere. The sys-
tem, comprising six VOCSIDIZER units with
a total capacity of 375,000 Nm3/h (normal
cubic meters per hour) of ventilation air, is
expected to reduce greenhouse gas emis-
sions by up to 200,000 tons of CO2 equiva-
lent per year. In addition, energy released in the process will be
used to heat water for nearby buildings.
China is the largest VAM emission country in the world. Cur-
rently, 70 percent of its energy and nearly 80 percent of its
electricity stems from coal. Negotiations for construction of the
Datong coal mine VAM system began in November 2009, when
the partnership was announced.
This greenhouse gas reduction project also has the potential to
generate carbon offset (CER) credits. Emissions reduction pro-
jects that involve the transfer of technology to an emerging
market (China) and are developed under the Clean Develop-
ment Mechanism (COM) of the United Nations Framework Con-
vention on Climate Change (UNFCCC) can be considered for
CER credits. To date the UNFCCC has formally approved CERs
from only one VAM abatement project in the world - this is
See VAM Projects on page 4
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Summer 2010
Page 4
COALBED METHANE EXTRA
GHG Reporting Rule for Coal Mines
Methane to Markets Update
GHG Reporting Rule for Coal Mines,/mmpage i
The 2008 Consolidated Appropriations Act directed EPA to de-
velop a greenhouse gas reporting program that requires manda-
tory greenhouse gas emissions reporting from upstream produc-
tion and downstream sources. This national greenhouse gas
reporting program will provide EPA with accurate and timely
emissions data from large emitters. This publicly available data
will provide a better understanding of where greenhouse gases
are coming from and will guide development of the best possible
policies and programs to reduce emissions.
For more information
This information is provided solely for informational purposes. It
does not provide legal advice, have legally binding effect, or ex-
pressly or implicitly create, expand, or limit any legal rights, obli-
gations, responsibilities, expectations, or benefits in regard to
any person. This is intended to assist reporting facilities/owners
in understanding key provisions of the final rule.
Visit EPA's web site for more information, including all rulemak-
ings related to the Greenhouse Gas Reporting Program, addi-
tional information sheets on specific industries, the schedule for
training sessions, and other documents and tools. For questions
that cannot be answered through the web site, please contact us
at: ghgmrr@epa.gov
VAM Projects
VAM PrOJeCtS,/rom page 3
also a MEGTEC system, commissioned in 2008 at the ZhengZhou
Mining Group in China's Henan Province.
That system, a single-unit installation, processes around 60,000
Nm3/h of ventilation air, and also generates hot water for local
use. MEGTEC anticipates that future projects will likewise in-
volve processing hot water while performing their primary task
of VAM abatement. Since MEGTEC systems utilize modular units,
smaller scale projects can be expanded as needed.
Four more Chinese VAM projects are expected to be operational
in the next two years, according to AES China Managing Director
for climate solutions, Ian Mclnnes. Globally, the company is
looking at 40 such projects over the next 17 years, as long as
market incentives are in place and carbon offset prices are high
enough.
Sources: MEGTEC: Reuters
Methane to Markets Coal Subcommittee
- 2010 Fall Meeting Set for Beijing
China will host the next meeting of the Methane to Markets
Coal Subcommittee in Beijing on October 21, 2010, in conjunc-
tion with the 10th International Symposium on CMM / CBM, to
be held on October 19-21.
The Symposium is being co-sponsored by USEPA and China
State Administration of Work Safety, and organized by the
China Coal Information Institute (CCII).
The Symposium will address a number of topics including tech-
nologies for effective drainage, recovery, and utilization of CBM
and CMM, including ventilation air methane.
The Symposium will also address policy, regulatory, and financ-
ing issues affecting CMM project development in China.
The call for papers and registration information for the 10th
International Symposium on CMM / CBM can be found on the
CCII website.
The Coal Subcommittee meeting, to be held on October 21 at
the same venue, will feature updates on global CMM project
developments and technologies. It will also provide an update
on the future of the Methane to Markets Partnership.
There is not a separate registration fee for this event. Registra-
tion and information about the M2M Coal Subcommittee meet-
ing will be posted shortly on the Methane to Markets website.
About the Methane to Markets Partnership
Removing fugitive methane gas from underground coal mines
and using it in profitable and practical ways can improve
worker safety, enhance mine productivity, increase revenues,
and reduce greenhouse gas emissions.
The Methane to Markets Partnership is fostering international
collaboration to advance methane capture and use projects
that bring more gas to market.
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Summer 2010
PageS
COALBED METHANE EXTRA
American Power Act Released
Senators John Kerry and Joe Lieberman released their long-
anticipated climate change and energy bill on May 12, 2010.
The American Power Act would place emissions limits on ap-
proximately 7,500 U.S. factories and power plants and would
cover only those operations that emit more than 25,000 tons of
greenhouse gases (GHGs) each year.
GHGs limited under the bill include carbon-dioxide, methane,
nitrous oxide, sulfur hexafluoride, perfluorocarbons, nitrogen
fluoride, and hydrofluorocarbons emitted as a byproduct.
The bill allows those with compliance obligations to use offsets
to meet part of their obligations, 75% of which must be from
domestic sources. Methane collection projects from mines,
landfills, and natural gas systems are included in
the initial list of eligible project types for domes-
tic emission reduction offsets (Sec. 734 p.383).
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:::::pow£R
iititiir mrrr
Other projects listed include: manure management and anaero-
bic digesters; projects involving fugitive emissions from the oil
and gas sector; forest management and afforestation/
reforestation projects; agricultural land management projects;
and recycling and waste minimization projects.
Section 2221 (p.613) of the bill, "Sense of the Senate on Inter-
national Methane", recognizes that methane is a potent green-
house gas with a relatively short atmospheric life and that cost
effective opportunities for methane destruction and capture for
energy use exist and result in near-term mitigation benefits.
The important work of EPA and other U.S. government agencies
to promote international methane reductions through the
Methane to Markets Partnership is also recognized.
Section 2221(b) (p.615) expresses the sense of the Senate that
"the United States should redouble efforts to maximize the
cost-effective energy, economic, environmental, and public
health benefits of preventing and recovering anthropogenic
methane emissions, including... expanding the involvement of
the United States with and sponsorship of the Methane to Mar-
kets (M2M) Partnership...."
Suggested expansions of M2M activities include efforts to:
. involve new country partners;
. scale up successful efforts to address methane emissions;
and
• research additional methods for preventing and capturing
methane emissions from existing sources and sources not
yet addressed.
The sense of the Senate also urges the U.S. to:
• work more with developed and developing countries in
raising awareness of the benefits of reducing methane
emissions;
. broaden cooperation with the private sector in efforts to
reduce emissions through improved management prac-
tices and use and deployment of cost effective technolo-
gies; and
. cooperate with the World Bank, regional development
banks, and other multilateral development and aid insti-
tutions to promote methods for addressing methane
emissions within existing climate, public health, develop-
ment, and energy programs.
Click on the following highlighted links for a full copy of the bill,
a short summary of the bill and a section-by-section overview of
the act. These documents are also available from Senator
Kerry's APA website.
CBM/CMM News
Chinese Coal Mines Plan World's Largest CMM to LNG
Project
Chongqing Energy Investment Group (CQEIG), a state-owned
enterprise in Chongqing municipality, China, has selected Town-
gas, a listed company in Hong Kong, as a joint venture partner to
implement the world's largest coal mine methane (CMM) purifi-
cation and liquefaction project.
The project will be developed at the mines of CQEIG's majority-
owned subsidiary, the Songzao Coal and Electricity Company.
The project is based on the "Feasibility Study of CMM Utilization
for Songzao Coal and Electricity Company Coal Mines," funded
by USEPA in support of the international Methane to Markets
Partnership and carried out by Raven Ridge Resources, Incorpo-
rated.
Total investment in this project is expected to be 530 million
RMB (US$77.9 million). Agreements for land required for the
project have been negotiated, and the project is expected to
start construction by the end of June 2010, with Phase I to be
completed at the end of 2011. Ultimately, the project will purify
and liquefy 110 million cubic meters of CMM. Annual sales of
liquefied natural gas (LNG) are expected to reach 275 million
RMB (US$40.4 million).
The Feasibility Study for the Songzao Mines (pdf, 150 pp, 9.8
MB) is available on CMOP's website.
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Summer 2010
Page 6
COALBED METHANE EXTRA
Anglo Coal Launches Methane
Flaring Project
Anglo Coal is incorporating two mobile
flares into the existing methane drainage
system at the company's New Denmark
Colliery (NDC) near Standerton, in Mpu-
malanga province.
Costing $1.2 million, the two Swiss de-
signed enclosed mobile flares will com-
bust methane drained from mine work-
ings, decreasing the mine's greenhouse
gas (GHG) emissions and potentially
generating carbon credits. Anglo Thermal
Coal CEO Norman Mbazima describes the
project as a "proactive technological
response" towards minimizing the com-
pany's carbon footprint.
Situated in the Highveld coalfield, ap-
proximately 150 km south-east of Johan-
nesburg, NDC is one of the deepest min-
ing operations in South Africa. The mine
supplies Eskom'sTutuka Power Station
with five million tonnes of coal per year
and has 130 Mt of proved and probable
reserves. The expected life of the mine is
more than 30 years, depending on de-
mand rates. Production at the Colliery
began in 1983.
Swiss company Hofstetter delivered two
HOFGAS-IPLlc 500 mine degasification
and incineration systems to Anglo. The
systems were built according to the
Anglo's requirements and supplemented
with a HOFGAS-Assay Gas Analyser,
combined with data recording. The flare's
communication system is solar powered
CBM/CMM News
and allows for remote monitoring. The
systems, including measurement devices,
were each mounted onto a trailer by
Anglo.
Flaring the drained methane converts it
to carbon dioxide, which is 18.5 times less
environmentally harmful when emitted
to the atmosphere. The enclosed mobile
flare, a joint New Denmark-Gemini Car-
bon concept, and a reported Clean Devel-
opment Mechanism first, uses a small
diesel blower to deliver drained methane
to four flaring nozzles where the gas is
mixed with air to a concentration that
enables it to be safely burnt. When mov-
ing the systems, the flare is tilted down.
Sources: Anglo American: Hofstetter: Mining Weekly
Green Gas Announces New CMM
Project in Ukraine
A February 4, 2010 press release from
Green Gas International ("Green Gas")
announces the conclusion of an agree-
ment with Krasndonugol (KNU), a subsidi-
ary of the mining and steel group Metin-
vest, to utilize CMM captured at its Suk-
hodolska-Vostochnaya coal mine in Kras-
nodon, Ukraine.
The agreement allows Green Gas to
develop the project in co-operations with
KNU over the next 15 years. Initially,
captured methane will be flared through
a Hofstetter Umwelttechnik enclosed
flare, expected to be operational by the
end of 2010.
An estimated 20 million m3 of methane
per annum is expected to be flared,
resulting in annual GHG emission reduc-
tions of approximately 200,000 tCO2e.
The mine, situated 150 km east of Do-
netsk, operates at depths up to 1,000
meters and is considered very gassy.
Green Gas has been involved with the
mine since 2007, upgrading existing
methane drainage systems in order to
supply a stable and dependable source of
methane to the surface, while enhancing
mine safety. The mine also benefits from
reduced electricity consumption through
the improved gas drainage system that
uses less power; and additional revenues
from the sale of carbon credits. Air qual-
ity also improves by destroying methane
that would otherwise escape into the
atmosphere.
Green Gas intends to install combined
heat and power (CHP) units at the mine,
to generate electricity with a capacity of
up to 12 MW as a second phase of devel-
opment. This electricity can be used to
power the mine or be distributed into the
public grid under a new Ukrainian Green
Tariff scheme.
Source: Green Gas
India Awards 7 CBM Blocks in 4th
Bidding Round
The Indian government has recently
awarded 7 new CBM blocks for explora-
tion in the 4th round of CBM block bid-
ding.
The Cabinet Committee on Economic
Affairs approved the awards with 4 blocks
going to Essar Oil, two to Arrow Energy
through separate joint ventures with Oil
India and Tata Power Co., while one block
went to Great Eastern Energy Corpora-
tion.
"The decision will accelerate exploration
and production activities in the country
See India CBM Blocks on page 7
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Summer 2010
Page 7
COALBED METHANE EXTRA
CBM/CMM News
India CBM BlOCkS, from page 6
and is expected to result in hydro-carbon
reserve accretion, thereby increasing the
energy security of the country," Home
Minister P. Chidambaram told reporters
after the awards. The fourth round of
bids for CBM blocks was launched in April
last year with ten block covering an area
of about 5,000 km2.
Source: Business Standard
CNOOC Signs Coal Seam Gas LNG
Deal with BG Group
China National Offshore Oil Corp.
(CNOOC) has signed an agreement with
BG Group of Australia for the purchase of
3.6 million tons per year of liquefied
natural gas (LNG) for the next 20 years.
The deal is worth approximately US$40
billion. The two companies have cooper-
ated on projects for the past four years.
CNOOC will purchase 5% of BG's interest
in coal seam gas reserves at Surat Basin in
Queensland and will also become a 10%
equity investor in QCLNG liquefaction
Train 1. The two companies will form a
consortium to construct two LNG ships.
Coal-seam gas—trapped stores of meth-
ane hundreds of meters below the Earth's
surface—is one of the world's hottest
energy plays. On March 22, 2010, Royal
Dutch Shell PLC (RDSB.LN) and PetroChina
agreed to buy most of the Australian
assets of coal seam gas producer Arrow
Energy Ltd. (AOE.AU), in a US$3.15 billion
deal (subject to regulatory and share-
holder approval).
The increasing global interest in coal-
seam gas, particularly where the gas is
super cooled into LNG, reflects the shrink-
ing access Western companies have to
conventional natural gas reserves, as well
as the environmental benefits of coal
seam gas. However, technical hurdles
must be overcome, as coal-seam gas
hasn't been turned into LNG for export
from Australia before.
The deal is the first fully-termed sale and
purchase agreement for the supply of
LNG from coal seam gas. There have been
estimates that Queensland holds enough
coal seam gas to power the state for over
1,000 years.
Source: www.capital.gr
Gold Fields Pioneers Carbon Trading
in the Gold Industry
Gold Fields Limited (Gold Fields) is set to
become the world's first gold mining
company to sell Certified Emissions Re-
ductions (CERs), the financial securities
used to trade carbon emissions.
Gold Fields will derive the CERs from the
capture of methane gas that would other-
wise be emitted to the atmosphere, at its
Beatrix Gold Mine in South Africa's Free
State province.
The company will sell 1,700,000 CERs to
European energy trading company Mer-
curia Energy Trading SA under forward
contracts which will run until 2016. The
transaction was brokered by TFS Green,
the carbon credits broker and environ-
mental business of the worldwide Tradi-
tion Group.
CERs are traded globally and frequently
bought by industrial companies as part of
their efforts to alleviate their own carbon
emission obligations. At current CER
values and exchange rates, the CER con-
tract is worth about $27 million.
Gold Fields will use the funds to finance a
number of projects linked to methane
capture. The first phase, set for comple-
tion before the end of 2010, comprises
the installation of a methane extraction
system underground and flares above
surface at a cost of about $6 million.
For the second phase Gold Fields is look-
ing at ways of using the gas to generate
electricity, thereby converting a harmful
greenhouse gas into a valuable resource.
Construction of a power generation plant,
with the potential to generate about
5MW of electricity, is scheduled to start
in 2011.
So far CERs-linked projects in Africa
comprise less than 2% of the total num-
ber of projects registered by the Clean
Development Mechanism (COM) execu-
tive board, the global body tasked with
administering CERs trading.
Gold Fields' Beatrix project is one of
around 15 South African projects that
have to date received Designated Na-
tional Authority verification from South
Africa's Department of Mineral Re-
sources, although the Gold Fields/
Mercuria CER transaction is subject to
final regulatory approvals.
Gold Fields' hope is that in addition to the
obvious financial and environmental
benefits, the project will result in a safer
working environment for miners at
Beatrix, as it reduces the hazard of under-
ground mine methane.
Methane enters mine workings when
faults and fissures carrying gas from a
deeper source are intersected during the
course of normal mining operations. At
Beatrix, methane gas will be captured as
close as possible to where it enters the
mine workings and then conveyed via a
network of pipes to the surface, where
the gas will be flared. Installation of the
underground pipes is well underway.
The Beatrix development is the first in a
number of carbon projects Gold Fields is
investigating to bolster its sustainable
mining practices. The strategy is under-
pinned by efforts to become more energy
efficient and thus reduce dependence on
coal-fired electricity.
Source: Gold Fields media release
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Summer 2010
PageS
COALBED METHANE EXTRA
New Publications
Methane and Climate Change
Edited by Dave Reay, Pete Smith and Andre van Amstel
This book provides an overview of the current knowledge and
sources of methane, including
fossil energy and ventilation air
methane, and how these might be
controlled to limit future climate
change.
The publication illustrates how
numerous point sources of meth-
ane have the potential to be more
easily addressed than sources of
carbon dioxide and therefore con-
tribute significantly to climate
change mitigation in the 21st cen-
tury.
For more information please visit the Earthscan publishing web-
page.
UtiM/CJMM MI tiCid A BuiMrijj Asset
^
CBM/CMM in India: A Budding Asset
By B.N.Prasad, Head, CBM Cell, Central Mine Planning & Design
Institute Ltd.
From the March/April 2010 Edition of "Energetica India" (p.42-
43)
India, having the fourth largest
proven coal reserves in the world,
holds significant prospects for
exploration and exploitation of
CBM. The CBM resource in the
country is estimated at 3.4 Tcm.
There is, therefore, a huge oppor-
tunity for potential CBM investors
in India.
Mr. Prasad discusses the current
status of the CBM/CMM industry
in India and possible future devel-
opments.
In Quest of a Policy: Coal Mine Methane Industry in India
By Pramod Kumar Singh, Analyst, ICF International
From the March/April 2010 Edition of "Energetica India" (p.40-
41)
In this article Mr. Singh highlights the lack of a national policy
for CMM capture and use in India, in comparison to existing
CBM policy.
Vi «*« ol * jwtej - COS! Mr*
Mmhnnn IncijBTV in India
OESSSs >»-<* Jr=
^^^H^^S
Essential features of a robust CMM
policy are discussed including: emis-
sion standards, technical barriers,
gas infrastructure support, fiscal
incentives, gas ownership, balance
with coal production, and addition-
ally of projects with respect to
carbon credits.
Managing Methane
ByJ.Somers, USEPA, and M.Cote, Ruby Canyon Engineering
From the May 2010 edition of World Coal magazine
This article discusses new develop-
ments in coal mine methane
(CMM) projects in the United
States, including alternative and
renewable energy incentives and
financing opportunities in the vol-
untary carbon markets.
Managing
A reprint of the article is available
on CMOP's website.
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Summer 2010
PageS
COALBED METHANE EXTRA
CBM/CMM Events
3r Annual CBM Conference
August 3-6, 2010
Hilton Hotel, Singapore
Web site: www.cbmconference.com
Second International Greenhouse Gas Measurement
Symposium
September 8-10, 2010
Washington D.C., USA
Web site: www.awma.org/events/view event.html?typeid=l&id=133
4th Annual India Carbon Market Conclave
September 8-9, 2010
New Delhi, India
Web site: www.indiacarbonconclave.com/index.htm
Carbon Markets Mexico & South America
September 8-9, 2010
Mexico City, Mexico
Web site: www.greenpowerconferences.com/carbonmarkets/
index.html
10th International Conference on Greenhouse Gas
Technologies
September 19-23, 2010
RAI, Amsterdam, The Netherlands
Web site: www.ghgt.info
Advanced Mining for Sustainable Development
September 23-25, 2010
Ha Long Bay, Vietnam
Email: vinamin@hn.vnn.vn
Conference details: www.sitg.pl/vietnam.pdf
Carbon Markets Turkey, South Caucasus & Central Asia
September 28-29, 2010
Istanbul, Turkey
Web site: www.greenpowerconferences.com/carbonmarkets/
index.html
2010 U.S. CMM Conference
October 5-7, 2010
Birmingham, Alabama, USA
Web site: www.epa.gov/cmop/conf/cmm conference octl0.htm
27th Annual International Pittsburgh Coal Conference
October 11-14, 2010
Istanbul, Turkey
Web site: www.engr.pitt.edu/pcc/index.html
10th International Symposium on CBM/CMM in China
October 19-21, 2010
Beijing Landmark Hotel, Beijing, China
Website: www.nios.com.cn/c/index en/coalbed/
cbmcon/2810.html
Contact: cbmc@coalinfo.net.cn orcbmc@public.bta.net.cn
Methane to Markets Coal Subcommittee Meeting
October 21,2010
Beijing Landmark Hotel, Beijing, China
Web site: www.methanetomarkets.org
Carbon Forum Asia
October 27-28, 2010
Singapore
Web site: www.carbonforumasia.com
10th International Mining and Machinery Exhibition
November 10-13, 2010
Kolkata, India
Contact: Arup.Mitra@mail.doc.gov
CMOP Contacts
Address inquiries about the Coalbed Methane Extra or about
the USEPA Coalbed Methane Outreach Program to:
Pamela Franklin
Phone: 202-343-9476
E-mail: franklin.pamela@epa.gov
Felicia Ruiz
Phone: 202-343-9129
E-mail: ruiz.felicia@epa.gov
Jayne Somers
Phone: 202-343-9896
E-mail: somers.jayne@epa.gov
Our mailing address is:
US Environmental Protection Agency
Coalbed Methane Outreach Program, 6207J
1200 Pennsylvania Avenue, NW
Washington, DC 20460
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Summer 2010
Page 10
COALBED METHANE EXTRA
2010
U.S. Coal Mine Methane Conference
October 5-7, 2010 * Sheraton Birmingham Hotel • Birmingham, AL
Save the Date for the 2010 U.S. Coal Mine Methane Conference!
Sheraton Birmingham Hotel
Birmingham, AL
October 5-7, 2010
The 2010 U.S. Coal Mine Methane Conference will feature experts on methane gas recovery and use from both government and
industry, showcase the latest technological advances, provide expert discussion on legal and financial issues, examine intriguing
case studies, and provide attendees with important networking opportunities.
Special Site Visit Announced!
We are excited to announce that Jim Walter Resources (JWR) will be hosting a special off-site tour on Thursday, October 7. Mine
management will present attendees with an overview of operations at JWR, followed by a tour of the coal seam well site, a gob well
site, and the methane processing facility. The site visit will end with a visit to the Biothermica ventilation air methane (VAM) unit at
JWR Mine No. 4. Check the conference web site for more details on this optional tour, which is expected to fill up quickly!
Sponsorship and Exhibitor Opportunities
Our Exhibit Hall becomes more and more popular each year! The 2010 U.S. Coal Mine Methane Conference provides a great
opportunity for companies to showcase themselves in front of high-level decision makers. For more information on sponsorship
and exhibit opportunities please contact Mark Grady at ERG, the contractor providing support services for this event.
Agenda
A draft agenda is now available. Check the conference web site often as we continue to add more speakers and other important
details.
GHG Reporting Program Training Session Offered
CMOP will be holding a training session for 40 CFR Part 98 at the conference which will include: general rule requirements;
stationary fuel combustion sources requirements; underground coal mine-specific requirements; questions and answers. More
details are included in the draft agenda.
Enjoy Southern Hospitality in Birmingham!
A limited number of sleeping rooms for the 2010 U.S. Coal Mine Methane Conference are available at the Sheraton Birmingham
Hotel at a reduced rate of $115 single or double occupancy, plus tax (currently 14%). To make your reservations, visit the Sheraton's
special U.S. Coal Mine Methane Conference sleeping room reservations page.
Register Online Today!
Online Registration for the 2010 U.S. Coal Mine Methane Conference is now available. Please visit the main conference website
often for updates and additional information. If you have any questions, please contact our contractor, ERG.
We look forward to seeing you in Birmingham!
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