2.7 BCf/d1.8 BCf/d

400

MM

Cf/

d

g

h

de

abc

Tsable River

Telkwa

f

Tulameen

GrahamIsland

Coalfields

Tuya RiverCoalfield

40 Bcf

Coal RiverCoalfield

6 Bcf

East KootenayCoalfields

19 TcfSuquash Coalfield

60 BcfComox Coalfield

800 Bcf

Nanaimo Coalfield300 Bcf

Bowron RiverCoalfield

8 Bcf

Klappan andGroundhogCoalfields

8.1 Tcf

TelkwaCoalfield130 Bcf

Peace RiverCoalfield

60 Tcf

Hat CreekCoalfield500 Bcf

MerrittCoalfield

TulameenCoalfield

50 Bcf

Prince Rupert

FortSt. John

Fort Nelson

Victoria

Vancouver

Sedimentary Basins

Gas Pipeline

Oil Pipeline

Alliance Pipeline

Anthracite to Sub-anthracite

Bituminous

Sub-bituminous to Lignite

Area Underlain by Coal(above 2000 m depth)

abcdefgh

Fording River

Greenhills

Line Creek

Elkview

Coal Mountain

Pine Valley Coal

Bullmoose

Quinsam

Wolverine & Perry Creek (W&PC)

Tsable River

Tulameen

Telkwa

Coal Mines

Active coal properties

MMCf/d

BCf/d

Million Cubic Feet per day

Billion Cubic Feet per day

Basin Outlines : Geological Survey of Canada, unpublished: P. Hannigan, P.J. Lee, K Osadetz et al., 1993-1998.

Coalfields, Pipelines and Coalbed Methane Potential in British Columbia

W&PC

Oil & Gas hole

During coalification coal generates more methane than it can retain

The excess is expelled into surrounding rocks

During uplift, the ability of coal to retain gas increases

If it is to reach saturation it must generate biogenic methane

Or re adsorb methane form the surrounding rocks

HVB High-volatile bituminous

MVB Medium-volatile bituminous

LVB Low-volatile bituminous

0

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gas cc/g or temp ºC/10

de

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progressive rank

adsorption curve

during coalification

MVBHVB

LVB

temperature gradient

arrows=makeup gas for

saturation at 1400 m

LVB

FINDFIND

FIND

adsorption

curves

during uplift

BRITISH COLUMBIAhas a resource of over 20 billion tonnes available for exploration

and a reserve of over 3 billion tonnes available for immediate development

0

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0 1 2 3 4 5 6 7 8coal rank and use

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USE

>>Thermal >>PCI>>Coking>>PCI>>Thermal

Su

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CBM RESOURCE

CBM is METHANE is NATURAL GAS

is THE BY- PRODUCT OF TURNING TREES INTO COAL

Coalbed methane (CBM) starts with coal

Coal generates methane (CBM) as part of the coalification process

One tonne of coal can generate enough gas to fill a room 9 x 9 x 2 metres

(up to 200 cubic metres of gas)

Coals ability to retain CBM depends on rank and depth of burial

The exploration window for CBM is fixed by an upper depth above which

gas has escaped and a lower depth below which permeability is too low

This window is about 150 metres to 1500 metres

To a large extent the coal resource of interest for CBM exploration is too

deeply buried to be of interest for conventional coal mining

The coal resource available for CBM exploration is over 250 billion tonnes

and it may contain a CBM resource of 90 trillion cubic feet (tcf)

THE COAL RESOURCE PRESENT AND FUTURE USE

�

�

�

�

�

�

�

�

GASIFICATION OF COAL TO PRODUCE H GAS WITH CO2 CAPTURE PRELIMINARY STUDIES

MORE OPPORTUNITIES THAN YOU THINK

EXTRACT COAL BED METHANE FROM DEEPLY BURIED COAL ON GOING EXPLORATION

EXPORT COKING COAL FOR USE IN STEEL MAKING ON GOING

PRODUCTION OF CHEMICAL FEED STOCK AND LOW BTU GAS PRELIMINARY STUDIES

EXPORT THERMAL COAL FOR ELECTRICAL GENERATION ON GOING

ORGANIC RICH SHALES AS A SOURCE FOR TIGHT GAS (CBM) UNDER CONSIDERATION

GASIFICATION AS PART OF ICCG POWER PLANTS UNDER CONSIDERATION

CONVENTIONAL COAL FIRED POWER PLANTS WITHIN THE PROVINCE UNDER CONSIDERATION

FUTURE FOR BRITISH COLUMBIA EXPORT

COKING COAL MINES

� prices and world export volumes flat

� strong competition from Australia but Australian

surface mines getting deeper underground mines not

always consistently cheep mining costs

� mining costs at most British Columbia mines will

improve as mine plans mature

� rail costs have decreased

� can supply coal quality required by market place

� LONG TERM OUTLOOK BC WILL

CONTINUE TO EXPORT 20 PLUS

MILLION TONNES OF COKING

COAL MAINLY FROM

SOUTHEAST BRITISH COLUMBIA

COKING COAL MARKETS CONSIDER� PRICES

� BLENDS

� VOLUMES

PRICES Controlled by supply and demand

Closure of mines in British Columbia and Alberta and decrease in

exports from the USA have ensured a balance for 2001 and maybe

2002

Prices are expected to remain stable or decrease marginally

BLENDS There will be market opportunities for good high volatile

coking coal in coking coal blends

and low volatile coal for PCI (pulverized coal injection)

VOLUMES Export tonnages may increase marginally

plus-side new technologies unlikely to influence coke demand

negative-side steel mills in financial difficulty may not respond to

economic recovery

Increased coke exports from china may reduce coking coal market

COAL DIRTY OR CLEAN ??

SIMPLE QUESTIONS SOLICIT MISS LEADING

ANSWERS

Fossil fuels provide energy by burning (oxidizing) the carbon and hydrogen

that they contain

Cc� energy+CO2 h �energy+H2O

CO2 is one of many greenhouse gases that contribute to global warming by

trapping infra red radiation (heat) in the atmosphere

Fossil fuels may also contain contaminants that produce pollutants

for example coal and oil can contain sulphur

Ss�energy+SO2 SO2+H2O�H2SO4 (sulphuric acid)

Technology can decrease contaminant concentrations in fossil fuels to

acceptable levels

All fossil fuels release CO2 when burnt

For a fixed heat release of 1 giga joule or 106

btu

Coal releases 100 kg CO2

Oil releases 70 kg co2

Gas releases 55 kg CO2

The actual amount of CO2 released per unit of useable energy depends on

the process efficiency

Generating electricity with present technology is 35% to 45% efficient new

technologies are 40% to 60% efficient

COAL IN BRITISH COLUMBIA

DID YOU KNOW

British Columbia has a coal resource of over 20 billion tonnes

and a mineable reserve of over 3 billion tonnes

in 2001 BC exported 27.1 million tonnes of coal for an

estimated value of 1.6 billion dollars close to the record

achieved in 1997 of 27.8 million tonnes

the value of coal exports exceeds the total value of all metal

exports and represents about 400 dollars for every person in

the province

British Columbia exports more coal than any other province

in Canada

coal is the major commodity moved by CP rail and CN rail

British Columbia coal mines directly employ over 2700

people many other jobs are in part dependent on coal mining

British Columbia exports coal to Japan, South Korea, USA,

Brazil, Taiwan UK and many other countries

British Columbia exports mainly coking coal

mining conditions and distance from port

make it dificult to export thermal coal

We are the number 2 exporter of coking coal in the world

There are expected to be marginal increases in coking coalsales

The mix of coal types required by the market place will change over time

There will be a preference for low volatile coals

and hard coking high volatile coals

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British Columbia coking and thermal coal exports

0

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200

1 2

mil

lion

ton

nes

weak low vol

weak mid vol

weak high vol

hard low vol

hard mid vol

hard high vol

year 2000 year 2010

Mix of world export coking coals present and future

coking coal exports by country 2000

Australia

57%

US

13%

Canada

15%

China

5%

other

10%

Coal markets are cyclical but the price for coking coking coal has

generally decreased in real terms and for Canada

the diference in the Canadian and Australian exchange rates

has made matters worse

Accounting for inflation the price of coking coal

has decreased by 50% since 1981

At the moment and generally in the past coking coal

has been priced higher in Australian dollars than Canadian dollars

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1975 1980 1985 1990 1995 2000 2005

Met

an

dth

erm

al

US

$co

al

pri

ces

Coking coal black

Thermal coal red

$ of the day

1981 $

40

50

60

70

80

90

100

1975 1980 1985 1990 1995 2000 2005

co

st

me

tc

oa

lin

$C

an

an

d$

Au

st

Australian dollars

canadian dollars

LONG TERM OUTLOOK

BRITISH COLUMBIA WILL CONTINUE TO EXPORT

MORE THAN 20 MILLION TONNES OF COKING COAL PER YEAR

MAINLY FROM SOUTHEAST BC

CONVENTIONAL POWER PLANTS, CLEAN COAL TECHNOLOGY,

(INTEGRATED GASIFICATION COMBINED CYCLE POWER PLANTS)

AND ZERO EMISSION HYDROGEN TECHNOLOGY

ARE ALL POSSIBLE NEW USES OF COAL WITHIN THE PROVINCE

TRADITIONAL COAL EXPORT MARKETS OF BRITISH COLUMBIA

METHANE GENERATED BY COAL IS THERMOGENIC OR BIOGENIC

IT MAY ADD TO THE CBM RESOURCE OR THE NATURAL GAS RESOURCE

1 cubic metre

coal

Thermogenic methane

generated

methane

retained by coal

20 cubic metres

CBM fills sandstone as natural gas

up to 40 cubic metres

generation of

biogenic methane

amount ??

BY HEAT OR BUGS

Biogenic methane is very important it

helps coals maintain saturation during

uplift

CARBON IS THE RESIDUE FROM ORGANIC MATTER

IT INDICATES THAT METHANE HAS BEEN GENERATED

MANY SHALES CONTAIN SIGNIFICANT AMOUNTS OF TOTAL ORGANIC CARBON (TOC)

THEY HAVE THEREFORE GENERATED METHANE WHICH THEY OFTEN RETAIN

Mud with 30%

organic material

shale with 10%

TOC and 1.5

cc/g methane

THERE MAY BE SIGNIFICANT RESOURCES

OF CBM IN ORGANIC RICH SHALES

Estimated coal and coalbed methane in place to 2000 metres

Billion tonnes Tcf billion tonnes Tcf

Peace River 160 60 Princeton 0.8 0.06 ??

Kootenay 50 19 Tulameen 0.3 0.05 ??

Bowser Basin 37 8 Merritt 0.2 0.02 ??

Comox 3 0.8 Suquash 0.3 0.06??

Hat Creek 2 0.3 Tuya River 0.7 0.04??

Nanaimo 1 0.3 Coal River 0.1 0.006 ??

Telkwa 0.8 0.13 Bowron River 0.4 0.008 ??

?? Estimates based on minimal data

Tcf trillion cubic feet Bcf billion cubic feet

COALBED METHANE POTENTIAL OF BRITISH COLUMBIA COAL RESOURCE OF BRITISH COLUMBIA

SEE YOU AROUND Barry Ryan 1/2002

MUCH OF THE NATURAL GAS BEING PRODUCED

IN NORTHEASTERN BRITISH COLUMBIA

MAY ORIGINATE FROM COAL SEAMS IN THE

GATES AND GETHING FORMATIONS

COAL IS AND WILL CONTINUE TO BE A

VERY IMPORTANT PART OF THE

RESOURCE INDUSTRY

OF BRITISH COLUMBIA

THE AMOUNT OF METHANE EXPELLED BY COAL DURING BURIAL AND COALIFICATION

DEPENDS ON RANK AND MAXIMUM DEPTH OF BURIAL

ON UPLIFT AS DEPTH OF BURIAL AND PRESSURE DECREASE

THE GAS CAN OCCUPY A LARGER VOLUME OF POROUS SANDSTONE

SOME OF THE EXPELLED GAS MAY BE RE ADSORBED BY THE COAL

COAL CAN SATURATE 10 TO 30 TIMES ITS VOLUME OF SANDSTONE WITH METHANE

DEPENDING ON THE POROSITY OF THE SANDSTONE

1

10

100

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Depth metrescub

icm

etre

sss

tfi

lled

by

1cu

bic

met

reco

al

Rmax = 1.5%

Rmax = 2.3%Rmax = 1.7%

Sandstone recharge from coal

assuming 4% porosity50

40

30

20

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4

6

8

10

12

14

16

0 2000 4000 6000 8000 10000 12000

Depth meters

Ga

sc

c/g

or

Rm

ax

%

Rmax

incremental gas

generated

area represents gas expelled into

surrounding rocks during burial

adsorption down

NEW USES FOR COAL WITHIN THE BRITISH COLUMBIA

BRITISH COLUMBIA IN THE COAL WORLD

Domestic

thermal 76%

Domestic

coking

Export

thermal 10%

Export

coking 4.5% BC Export coking

coal 1%

WORLD COAL CONSUMPTION 3500 MILLION TONNES

RAW MATERIALS COAL AND LIMESTONE LIMESTONE IS RE

USED

CH4 + CaO + H2O >> CaCO3 + 4H2

2H2 >> make electricity

2H2 + C >>CH4

CaCO3 + heat >> CaO + CO2

MAKE MAGNESIUM CARBONATE

FROM

SERPENTINE AND CARBON DIOXIDE

Mg3SiO5(OH)4 + 3CO2 >> 3MgCO3 + 2SiO + 2H2O

EXOTHERMIC REACTION PROVIDES HEAT

ELEMENTS OF PROCESS TESTED IN

PILOT PLANTS OR BENCH SCALE

INDUSTRIAL SCALE DOES NOT EXIST

solid oxide fuel cell

electricity plus heat

Disposal as magnesium carbonate

THE ZERO EMISSION COAL CHEMISTRY

COAL

LIMESTONE

ELECTRICITY

COAL GASIFICATION

IGCC POWER PLANT

GE

O

LO

G IC A L SUR

VE

Y

BR

ITIS

H C OLUM

BIA

Energy for the future - coal and coalbed methane in BCBarry Ryan - B.C. Ministry of Energy and Mines, Geological Survey Branch