CMM Recovery and rtunities at Western Use: U.S. Mines U.S.EPA Coalbed Methane OUTREACH PROGRAM Benefits of CMM Recovery and Use Many of the major U.S. coal fields are located in Western states—including Colorado, Montana, New Mexico, Utah, and Wyoming—and the associated mines comprise some of the country's gassiest coal reserves. The recoverable, high quality coal mine methane (CMM) from Western mines is estimated at 3.4 billion cubic feet (Bcf), which equates to 3.4 trillion British thermal units (Btu) or 300,000 megawatt hours (MWh) of power generation for project developers. Moreover, emerging policies and incentives in Western states are designed to encourage greater CMM recovery/use. Western Mines CMM Resource Potential In 2012, Western mines in Colorado, New Mexico, and Utah represent 46% of vented mine degasification and 11% of ventilation air methane (VAM) from U.S. underground mines (see table below). Western mines also represent 62% of CMM emissions from U.S. surface mines—with Wyoming accounting for 56% of the volume.1 Emissions from Underground Western Mines (MMcf, 2012) Reduce GHG emissions Conserve a local source of valuable, clean- burning energy Enhance mine safety by reducing in-mine methane concentrations Generate revenue for the mine State/Mine VAM Emissions Degas Total Colorado Bowie No.2 642 94 736 Elk Creek 3,217 965 4,182 McClane Canyon 78 - 78 West Elk 1,483 1,008 2,491 New Mexico San Juan South 1,290 443 1,733 Utah Dugout Canyon 280 - 280 Emery 41 - 41 West Ridge 1,877 855 2,732 Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012 (2014) Using CMM to Meet State Renewable Portfolio Standards and Goals Several coal-producing states have enacted alternative energy and renewable energy programs that include coal-related methane as a targeted renewable or clean energy resource. • In 2004, Colorado became the first state to create a renewable portfolio standard requiring utilities to generate or purchase enough renewable energy to supply 10-30% of their electric sales by 2020.2 Legislation adopted in 2013 expanded the list of eligible renewable energy sources to include CMM. • In 2008, Utah established a renewable portfolio goal requiring eligible renewable energy sources to account for 20% of utilities' 2025 adjusted retail electric sales.3 In 2010, the Utah legislature amended its definition of renewable energy source to include "methane gas from an abandoned coal mine or a coal degassing operation associated with a state-approved mine permit" as part of waste gas or waste heat captured or recovered for use as an energy source for an electric generation facility.4 Large methane capture and utilization projects in the coal mines of Appalachia provide mining companies with a significant energy source and/or additional revenue. CMM projects could be implemented at Western mines with similar results. Colorado and Utah legislatures have expanded or amended "renewable energy sources" definitions to include CMM U.S. Environmental Protection Agency (U.S. EPA), Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012, Chapter 3 - Energy (April 2014), http://www.epa.gov/climatechange/Downloads/ghgemissions/US-GHG-lnventory-2014-Chapter-3-Energy.pdf. Energy Resource and Carbon Emission Reduction Initiative Act, www.dsireusa.org/incentives/incentive.cfm?lncentive_Code=C024R. 3S.B. 202, Title 10 Municipal Code, Chapter 19 Municipal Electric Utility Carbon Emission Reduction Act, UTAH. CODE ANN. § 10-19-101 etseq. (2009). 4 H.B. 192, 2010 Gen. Sess. (Utah 2010), available at http://le.uta h.gov/~2010/htmdoc/hbi 11 htm/H B0192.htm. ------- CMM Markets and Project Opportunities The largest and most prevalent CMM emission reduction projects in the United States involve capture and sale of produced gas directly to natural gas pipelines. This option is particularly attractive when the mine is located near existing infrastructure, such as in New Mexico or Wyoming, and meets the minimum pipeline quality and quantity requirements. Using CMM to fuel electrical generation via gas turbines or internal combustion engines is another potentially profitable way to generate revenue by selling energy into the electricity grid. Proven technologies comprise using CMM in generator sets and/or boilers. Alternatively, mines can reduce costs by using heat and power generated onsite to run equipment. Other proven uses for CMM include low-level heat for coal drying or mine ventilation air and water heating during the winter months, feedstock fuel for manufacturing and processing end uses, and vehicular fuel (e.g., liquefied or compressed natural gas). Methane emission reduction credits or offsets associated with CMM projects may be sold into voluntary carbon registries (e.g., Verified Carbon Standard, Climate Action Reserve) and emerging compliance carbon markets (e.g., California Air Resources Board cap-and-trade offset program). Carbon credit revenues can be generated for emission reductions from both active and abandoned coal mines. Clean Coal By mitigating both the VAM and drainage emissions from a gassy underground mine with a specific emission factor of 700 standard cubic feet of methane per ton of coal mined, approximately 10% of the carbon dioxide generated by burning the coal for power production would be offset by the methane reductions; thereby, significantly lowering the coal's life-cycle carbon foot print. Western Mine Methane Capture Projects Solvay Chemicals, Inc. CMM Utilization The fundamental objective of Solvay's mine methane drainage project is to improve the safety of its miners' work environment. This waste gas is then used in a process kiln with the excess gas being destroyed in an enclosed combustor. Solvay's process kiln (compliments of Solvay Chemicals, Inc.) Elk Creek Power Generation and Methane Destruction This project drains methane from sealed areas of the mine—through an underground drainage system—to reduce emissions into working areas of the mine. Surface equipment then utilizes the methane for 3-megawatt electricity (MWe) power generation with excess gas combusted. Combustor and first of three 1-MWe power generators being placed at Elk Creek mine (compliments of Vessels Coal Gas, Inc.) The U.S. Environmental Protection Agency's Coalbed Methane Outreach Program (CMOP) is a voluntary program with a goal of reducing methane emissions from coal mining activities. Our mission is to promote the profitable recovery and utilization of CMM, a potent greenhouse gas (GHG) that contributes to climate change if emitted to the atmosphere. When collected and used for energy, CMM is a valuable fuel source. www.epa.gov/cmop ------- |