on coal mines verdeo targets methane both post and pre-mining

2010 CAR Workshop – Morgantown, WV Unlocking Carbon Value.

CMM Offset Generating Project Case StudiesPresentation to the CAR WorkshopNovember 9, 2010Morgantown, WV

Santosh Lakhan & Jeff LiebertVerdeo Group

1


Verdeo Update: Projects Under Development

Longwall Coal Mine Gob gas destruction

feasibility assessment

Abandoned Longwall Coal MineCarbon monetization of gob gas

pipeline injection

Longwall Coal MineGob gas destruction

Longwall Coal MineGob gas and VAM feasibility

assessment

Longwall Trona MineGob gas destruction and

utilization

Longwall Coal MineVAM oxidation

Longwall Trona MineGob gas destruction and

utilization

Verdeo Offices

Oil/Gas ProductionFugitive methane

capture

Oil/Gas ProductionFugitive methane

captureOil/Gas Production

Fugitive methanecapture

The leading portfolio of methane projects in North America with environmental attributes

Mexican LandfillsLFG gathering and destruction

projects

Gas ProductionLeak Detection and Repair

Coal Mining CompanyCMM/CBM to power generation

Coal Mining CompanyPortfolio feasibility

assessment, gob gas field test

2


Longwall being mined

Future longwalls

Gob Vent Boreholes

Ventilation &

Bleeder Fans Pre-‐mine Degas Wells

VAM

Gob Gas

Pre-‐mine

Degas

Mined Out Area

Sources of Mine Methane Emissions

3

On coal mines Verdeo targets methane, both post and pre-mining

2010 CAR Workshop – Morgantown, WV Unlocking Carbon Value. 4

Varying methane concentrations result in only a select set of project types being applicable to each source

Applicable Project Types

RTO/RCO Oxidation

Incineration

Power Generation using Lean Gas Engines

Pipeline Injection

Ventilation Air Gob Vent Boreholes Pre-‐mining Degas

Source of methane

Higher methane concentrations make this an

inefficient and costly mechanism for abatement

Methane concentrations are too low to be ignited and

combusted in an incinerator

While technically feasible “waste” of potentially high

quality gas stream

Methane concentrations are too low to power lean gas

engines

Methane concentrations are too low for pipeline quality



0.3– 1.9% CH4(stable in flow

& concentration)40 – 80% CH

4(fluctuates

depending on mining)70 – 90% CH

4(relatively stable

in flow and concentration)

* Longevity of gob wells and infrastructure costs (including piping to well) could make this economically unviable

*


Verdeo has worked or is currently developing projects in each of these project types

Gob or GoafGo

b well

Extraction Pump

Caved in

sections

Oxidizers Flare

Pre-‐mine De

gas well

Incineration

Pipeline

Pipeline Injection

Mine

Vent Shaft

Fan

Ventilation Air Methane Oxidation

Gas Conditioning

Pre-‐mine De

gas well

Lean Gas Engine

Power Generation

Containerized Lean Gas Engine

• Generating units are containerized increasing portability

• Modularity allows for plant to be scaled up and down depending on gas availability

• Engines can cope with fluctuating gas compositions

• Plants are large to capture economies of scale and are typically located closer to gas pipelines

• Requires significant gas gathering and collection infrastructure

• Incinerator can be integrated with existing extraction pumps

• Both extraction pumps & incinerators are portable & can follow mining activity & can also be used on a peaking basis

• Incinerators are designed to cope with fluctuations in methane concentrations

• Regenerative Thermal Oxidizer (RTO) plants are relatively large comprising multiple modular RTO units

• Plant must be located more than 100 feet from vent or bleeder shaft evasé

• Plant can be relocated if needed• RTO can be designed for an operational range as low as 0.2% CH4

Plant Characteristics




RTO Oxidation

Incineration


Pipeline Injection


Source of methane





0.3 – 1.9% CH4(stable in flow


4(fluctuates


4(relatively stable




When fully operational the McElroy VAM project will generate approximately 380,000 offsets annually


Design and Development Construction and Commissioning Ongoing Operations

• Financing• System integration• Coal mining and CMM experience

• Project finance and management

• Air permitting

• Engineering and design capabilities

• RTO experience

• Mining experience• Engineering support• Permitting and environmental support

• Project management• System integration• Carbon services• Investment management• CMM and VAM expertise

• Technology solution fabrication

• Plant construction• Testing and commissioning

• Site location• VAM resource• General safety and engineering support

• Offset generation• Offset monetization• Investment management• Project and Performance management

• Plant operation• Maintenance• Ongoing technical services

• VAM resource• General safety and engineering support

McElroy project roles and responsibilities




RTO Oxidation

Incineration


Pipeline Injection


Source of methane

Methane concentrations are too low to power lean gas

engines



4(fluctuates


4(relatively stable




The development of the CMM power project is being undertaken in three distinct sequential phases

Feasibility AssessmentPlant Design, Permitting and

Interconnect Study

Construction and

Commissioning

• Understand mine power requirements and profile

• Assess gas availability, quality and volumes

• Determine potential technology solutions and applicability

• Estimate plant size and design based on gas availability, electricity demand and technology options

• Analyze the financial case for the power plant and determine success criteria

• Develop project structure and financing options

• Finalize plant design and operational characteristics

• Determine plant emissions profile and initiate permitting applications

• Undertake grid interconnect study to understand implications of introducing power to the grid

• Determine stand-‐by power requirements

• Negotiate off-‐take or tolling agreements

• Construct and commission plant according to finalized design specifications

• Ongoing operation and maintenance of the plant to meet availability and efficiency targets

• Expansion of the plant depending on the mine electricity needs and modularity of the technology solution


Understanding the sources and sinks of energy was critical in conceptualizing the power plant

11

Gas Supply Potential Mine Power Demand ProfileGenerating Plant Capabilities

Daily power demand profile ILLUSTRATIVE

ILLUSTRATIVE

Gas Composition Analysis

Gas Production Volume Analysis ILLUSTRATIVE

ILLUSTRATIVE

• Analysis of mine methane in-‐situ reserves

• Determine drainage potential and CMM & CBM delineations based on mining plan and projections

• Build a gas supply profile with projections on volume and composition of supply

• Assess drilling and infrastructure requirements for gas supply e.g. compressions, gas treatment, piping

Pre-‐technology selection

• Define plant generating characteristics based on gas supply and power demand analysis

Post-‐technology selection

• Determine plant production characterizes and determine the potential for excess power sales to the grid or the need for supplemental grid power and backup/contingency provision

• Assess the need and implications of grid interconnect

• Identify power sources and sinks at mine facilities

• Build a mine power demand profile based on historic use and projections

• Assess possibility for shaping demand profile to better suit power generating plant capabilities or to avoid peak costs

Equipment and Process Load Curves ILLUSTRATIVE


Gas Analysis

12

Electricity Demand Analysis

Plant Size Assessment

Plant sizing was based on a detailed analysis of gas supply and mine electricity demand


Plant Description and Details: Key Metrics and Considerations:

• Project description:

Generation: 20 MWeLocation: PennsylvaniaFuel Source: Fugitive Coal Mine Methane

• Key Stakeholders & Parties:

Mining Company : Leading Appalachian & Powder River Basin, publicly traded, coal mining company Engine suppliers: GE Jenbacher (5 X 4MW)

• Project Economics & Metrics:

Number of lean gas engines: 5Electrical efficiency: 39.1%Plant availability: 93%Projected grid prices: $65/MWh

• Key issues and risks:

Plant availability and power output are dependant on the quality and quantity of methane supplyProject economic viability depends heavily on strong power demand & pricing Depending on the size of the plant the GHG emissions from the plant could exceed 25,000 tCO2e which could cause permitting issues

The project is poised to enter the design and permitting stage of development




RTO Oxidation

Incineration


Pipeline Injection


Source of methane

Methane concentrations are too low for pipeline quality



4(fluctuates


4(relatively stable



*


Alpha’s Coal Gas Recovery Project was recently validated as a GHG offset project

15

Equitable

Pipeline

Coal Gas Recovery

Processing Plant

Testing

Program

Commercial

Expansion

Commercial

Expansion

http://www.alphanr.com/


0

1 1

2

3

6

8

9

5

4 4

2

1

0

1 1

0

2

1

2

1

0

2 2

1

2

0 0

1

0 0 0 0

DD Wells VV Wells Gob Wells

Alpha’s drilling program expanded their R&D test program achieving commercial scale

16

Testing Phase Commercial

Expansion

08/31/2004 08/31/2005 08/31/2006 08/31/2007 08/31/2008 08/31/2009 08/31/2010 08/31/2011 08/31/2012 08/31/2013 08/31/2014


Project will generate 2.7 – 3.1 million offsets over the life of the project

17

2.1 2.31.7

2.33.1

2.1 1.8 1.4 1.2 1.1 1.0 0.9 0.9 0.8 0.5 0.5

1.12.9

3.85.1 5.6 5.8

5.14.5

4.0 3.7

0.2 2.6

3.8

4.9

5.03.9 2.8

1.7

0.9

0.5

0.1

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

3.3

6.7

9.2

10.1 10.1

9.4

8.4

6.9

4.7

5.8

4.6

Total offsets produced: 2.7 – 3.1 MMtCO2e

4.2




RTO Oxidation

Incineration


Pipeline Injection


Source of methane

Methane concentrations are too low to be ignited and

combusted in an incinerator

While technically feasible “waste” of potentially high

quality gas stream



4(fluctuates


4(relatively stable




First operating gob gas incineration installation on an active underground mine in the US


Introducing the MDU™ - World’s first off-grid, mobile integrated gob gas incineration and measurement system

MDU™(Methane Destruction Unit)


Operational Configuration

Transportation Configuration

Configured for rapid deployment and easy mobility


For fully financed, turn-key methane abatement or beneficial use projects please contact:

22

1600 K Street, NW, Suite 700, Washington, DC 20006 / www.verdeogroup.com

Denver Washington, DC Austin

Santosh LakhanDirector

Phone: [email protected]

Ben AppleDirector


Jeff LiebertManaging Director


http://www.verdeogroup.com/

mailto:[email protected]



on coal mines verdeo targets methane both post and pre-mining

Documents