Coal Mine Methane Utilisation Potential in Russia
Total Page:16
File Type:pdf, Size:1020Kb
COAL MINE METHANE IN RUSSIA Capturing the safety and environmental benefits INFORMATION PAPER 2009 December INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its mandate is two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and to advise member countries on sound energy policy. The IEA carries out a comprehensive programme of energy co-operation among 28 advanced economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency aims to: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain © OECD/IEA, 2009 Sweden International Energy Agency Switzerland 9 rue de la Fédération Turkey 75739 Paris Cedex 15, France United Kingdom United States Please note that this publication is subject to specific restrictions The European Commission that limit its use and distribution. also participates in The terms and conditions are available online at www.iea.org/about/copyright.asp the work of the IEA. COAL MINE METHANE IN RUSSIA: Capturing the safety and environmental benefits Page | 3 COAL MINE METHANE IN RUSSIA: Capturing the Safety and Environmental Benefits – © OECD/IEA 2009 Table of Contents Acknowledgements ............................................................................................................................... 5 Executive Summary ............................................................................................................................... 8 Page | 3 1 Introduction ..................................................................................................................................... 12 2 Overview of Russia’s Coal Sector ..................................................................................................... 14 2.1 Russia’s Coal Industry ........................................................................................................... 15 2.2 The Outlook for the Russian Coal Sector .............................................................................. 18 3 Coal Mine Methane Resources in Russia......................................................................................... 19 4 Coal Mine Methane Emissions at Russian Coal Mines .................................................................... 21 5 Coal Mine Methane Recovery in Russia .......................................................................................... 24 5.1 Technologies for Coal Mine Methane Recovery ................................................................... 24 5.2 The Rate of Methane Capture in Russia ............................................................................... 25 5.3 CMM Utilisation Technologies and Practices ....................................................................... 28 6 Organisational Roles and Responsibilities for CMM in Russia ........................................................ 29 7 Government Policies, Legislation and Regulations related to CMM in Russia ................................ 30 7.1 Russian Federal Laws and Regulations Related to CMM ...................................................... 30 7.2 Regional Laws ....................................................................................................................... 33 7.3 Ongoing Development of Policies and Measures to Stimulate CMM Recovery and Use .... 34 7.4 Policies and Measures which Indirectly Support CMM Recovery and Use .......................... 35 7.5 State Financial Assistance to Research & Development (R&D) Projects Related to CMM .. 35 8 Key Drivers for Methane Recovery and Use in Russia ..................................................................... 36 8.1 Safety of Underground Mining ............................................................................................. 36 8.2 Labour and Mine Productivity .............................................................................................. 36 8.3 Use of Methane as an Energy Source ................................................................................... 37 8.4 Reducing Russian Emissions of Greenhouse Gas .................................................................. 38 8.5 Economics of CMM Utilisation ............................................................................................. 38 9 Barriers to Methane Use in Russia .................................................................................................. 41 9.1 Economic and Financial Constraints Posed by Regulated Natural Gas Prices ...................... 41 9.2 Geographic and Technical Barriers ....................................................................................... 42 9.3 The Need for Clarity over Ownership and Licensing of Methane Resources ....................... 42 9.4 The Lack of a Common Framework or Focus on CMM in Russia .......................................... 43 9.5 Informational Barriers .......................................................................................................... 44 10 Experience in Other Countries ...................................................................................................... 44 11 IEA Conclusions on Enhancing CMM Recovery and Use in Russia ................................................ 46 11.1 Coal Mine Methane Recovery ............................................................................................ 47 11.1.1 Stricter Enforcement of Safety Regulations ........................................................... 47 11.1.2 Promotion of Flaring of CMM as Opposed to the Venting of CMM ....................... 47 Page | 4 Page | 4 COAL MINE METHANE IN RUSSIA: Capturing the Safety and Environmental Benefits – © OECD/IEA 2009 11.2 Coal Mine Methane Use ..................................................................................................... 47 11.2.1 Clarify Ownership and Licence Terms Related to the Use of CMM ......................... 47 11.2.2 Enhance the Share of Renewable Energy Sources in the Electricity Sector ............ 48 11.2.3 Provide Financial Assistance to Research & Development Projects Related to CMM ...................................................................................................... 48 Page | 4 11.2.4 Provide Tax Incentives or Increase Environmental Fines ....................................... 48 11.2.5 Enhance Russian Participation in International Co-operation Related to CMM ..... 49 11.2.6 Enhance Institutional Co-ordination and Clarify Roles and Responsibility ............ 49 Annex I ................................................................................................................................................ 50 Glossary of Terms and Abbreviations ................................................................................................. 58 Bibliography ........................................................................................................................................ 61 List of Figures Figure 1: Global greenhouse gas emissions in 2000 and anthropogenic methane sources .............. 12 Figure 2: Russia and other coal producers could continue to see rising CMM emissions ................. 13 Figure 3: Major mine explosions in Russia in 1997-2007 .................................................................. 14 Figure 4: Productivity of Russian underground coal mines in 2008, tonnes of coal per man year ... 17 Figure 5: Economic benefits from the SUEK JI project (profits from selling ERUs included) ............ 41 List of Maps Map 1: Russian coal reserves .............................................................................................................. 6 Map 2: Russian coal production in 2007 .............................................................................................. 7 List of Tables Table 1: Average methane content of coal by country (m3/t) ........................................................... 15 Table 2: Methane emissions from CIS mines and open cast .............................................................. 19 Table 3: Methane content of Kuznetskiy basin by rank and depth of occurrence ............................ 20 Table 4: Coal production and estimated average methane releases during 2003 at potentially productive mines in the Kuznetskiy and Pechorskiy basins ..............................................................