Energy Sector Methane Recovery and Use

INTERNATIONAL ENERGY AGENCY

The Importance of Policy Energy Sector Methane Recovery and Use The Importance of Policy

Methane, a potent greenhouse gas, is emitted in the oil and gas sector, at coal mines, landfills and manure management facilities. These emissions represent an often profitable solution to global climate change: methane can be recovered and used to produce electricity and heat. However, while there are hundreds of methane mitigation projects successfully operating around the world, much more can be done, if the right policies are in place. Policy solutions are needed to address financial, knowledge and regulatory barriers that can prevent promising projects from development. This report for the first time documents the successful energy sector methane recovery and use policies that are in use around the world, with the aim of providing models that can be adapted – resulting in more efficient, lower-cost solutions to global climate change. INTERNATIONAL ENERGY AGENCY

Energy Sector Methane Recovery and Use

The Importance of Policy Energy Sector Methane Recovery and Use: The Importance of Policy IEA member countries: Australia INTERNATIONAL ENERGY AGENCY Austria

The International Energy Agency (IEA) is an autonomous body which was established in Belgium November 1974 within the framework of the Organisation for Economic Co-operation and Development (OECD) to implement an inter national energy programme. Canada It carries out a comprehensive programme of energy co-operation among twenty-eight Czech Republic of the thirty OECD member countries. The basic aims of the IEA are: Denmark  To maintain and improve systems for coping with oil supply disruptions.  To promote rational energy policies in a global context through co-operative Finland relations with non-member countries, industry and inter national organisations. France  To operate a permanent information system on international oil markets.  To provide data on other aspects of international energy markets. Germany  To improve the world’s energy supply and demand structure by developing Greece alternative energy sources and increasing the efﬁ ciency of energy use.  To promote international collaboration on energy technology. Hungary  To assist in the integration of environmental and energy Ireland policies, including relating to climate change. Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand

Norway

Poland ORGANISATION FOR Portugal ECONOMIC CO-OPERATION AND DEVELOPMENT Slovak Republic Spain The OECD is a unique forum where the governments of thirty democracies work together to address the Sweden economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments Switzerland respond to new developments and concerns, such as corporate governance, the information Turkey economy and the challenges of an ageing population. The Organisation provides a setting United Kingdom where governments can compare policy experiences, seek answers to common United States problems, identify good practice and work to co-ordinate domestic and The European Commission international policies. also participates in the work of the IEA.

© OECD/IEA, 2009 International Energy Agency (IEA) 9 rue de la Fédération, 75739 Paris Cedex 15, France Please note that this publication is subject to speciﬁ c restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/about/copyright.asp United States United Kingdom The European Commission Turkey also participates in Switzerland the work of the IEA. Sweden Spain Slovak Republic Portugal Poland Norway

New Zealand Netherlands

of economic, social and environmental challenges of challenges environmental and social economic, Luxembourg globalisation. The OECD is also at the forefront offorefront the at also is OECD The globalisation. fot t udrtn ad o ep governments help to and understand to efforts The OECD is a unique forum where the governments respond to new developments and concerns, concerns, and developments new to respond such as corporate governance, the information the governance, corporate as such

thirtydemocracies work together to address the AND DEVELOPMENT economy and the challenges of an ageing ageing an of challenges the and economy population. The Organisation provides a setting ECONOMIC CO-OPERATION where governments can compare policy policy compare can governments where Korea (Republic of) ORGANISATION FOR experiences, seek answers to common common to answers seek experiences, problems, identify good practice and and practice good identify problems, Japan work to co-ordinate domestic and and domestic co-ordinate to work international policies. international Italy

Ireland Hungary IEA membercountries: Greece Australia Germany

Austria France Finland Belgium Denmark Czech Republic Canada

makers as they search for low-cost, near-term solutions to climate change. that have been used to advance these important projects. This information is intended to guideidentifiesmethane;Itlandfill successfuluse. methane;manuremethaneandpolicyrecovery policiesand links to the energy sector: oil and gas methane recovery strongestand thereduction havemitigation methanethatprojects of ofleaks types andfour losses;of overview coal an offersmine report This Development Mechanism. addressissuesimportanttotheOnestepsomeisthatof methane projects Clean thehavefacedin makersneed to do more to ensure the success of methane mitigation projects in the carbon market. Partnership Marketscombines to government Methane multilateral and theindustry whileexpertise arena,to policysuccessfully climate international address the Additionally,some in barriers, policy addressed in individual countries, but successful policies need to be shared and applied morecoal widely. mine methane, regulatory frameworks are unclear as to property rights. These facebarriersdifficulties gaininghave access gaselectricitytoor been networks selltotheir energy; or, theincaseasof policyframeworks awareness,and know-how to lackevaluate methane countriesrecovery and use Developing opportunities. adoption. Projects widespread can their prevent barriers market cases, many today.However,inready and availablewidely aretechnologies use and recovery Methane expected to increase the most. emissionsmethanearesector energyemergingeconomies,where particularly in important is This revenue. of source local a andconditions, safetyimprovedpollution, water and air localreduced coal or agricultural sectors. Recovering and using methane offers a host of local co-benefits,increase efficiencyincluding in the oil and gas sector, or be used as an opportunity fuel arising from the waste, In addition, methane, which is the main component of natural gas, is a valuable commodity and can climate in the near term, buying time for longer-term energy technology solutions to be implemented. – but has a short atmospheric lifetime. As a result, reductions realised today can help to stabilise the Methane is a potent greenhouse gas – 25 times more powerful than CO effective and efficient solution to climate change, energy sector methaneemissions. However,emissions CO while merit a closer look. (CO theInanalysis climateof change, mosttheofattention hasfocused emissionson carbonof dioxide Foreword methane mitigation policydesignandimplementation. in practices best and examples with makers policy providing by efforts IEA continues report years. This few past the over studies and analyses of series a conducted has IEA sector,the energy the in Touse and recovery methane advance to options policy appropriate about awareness raise Purpose of report 2 ) from the energyfromthesector,) whichcontribute total manmadeofover61% greenhouse (GHG)gas 2 is the biggest concern for the energy sector, as the world crafts an craftssector,energyworld thethe biggest concern forasthe is Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery 2 over a 100-year time period Executive Director Nobuo Tanaka

© OECD/IEA, 2009 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery an Smr. uil utdo Brrn Sdn ad net Hrcsl as poie much- provided also Hardcastle Annette needed editorial,layoutandgraphicssupport. and Sadin, Bertrand Custodio, Muriel Somers. Jayne and Roos Kurt King, Ashley PaulGunning, Goldstein, RachelPamelaFranklin, Fernandez, Roger Ferland, Henry Barbara Bylin, Carey and Agency’s Protection Environmental Corbeau U.S. the and Anne-Sophie IEA the Gaghen, of Buchner Rebecca including reviewers, their of all thank to wish authors The report. this of production Transitthe Federal during US Administration the from IEA the to seconded was who Hershman, Michelle Tomand were Kerr paper this of authors The Acknowledgements Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

© OECD/IEA, 2009 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Figure 8 Figure 7 Figure 6 Figure 5 Figure 4 Figure 3 Figure 2 Figure 1 List of figures References Appendix: Relevant UNFCCC Clean Development Mechanism Methodologies Abbreviations/acronyms and units Conclusions Methane in the international climate change and energy arena Energy sector methane mitigation: a closer look Methane emissions: context Executive summary Acknowledgements Forewor Table ofcontents Figure 10 Figure 9

d Impact of a 50% reduction in BAU in 2050, maintained to 2100 in the CDM, but numbers are declining Methane recovery has been a popular project category Manure management methane emissions are rising globally are expected to grow, particularly in developing regions Methane emissions from solid waste management China and other coal producers continue to see rising CMM emissions with a drop in gas flaring volumes Alberta has realised major emissions reductions associated to grow substantially in developing regions Methane emissions from oil and gas systems are estimated Methane emissions contribution and breakdown of anthropogenic sources There are important methane mitigation opportunities in the near term Methane is the second most important greenhouse gas ......

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© OECD/IEA, 2009 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Figure 1 u t is ih oec ad hr amshrc ieie adesn mtae msin i a near the in particularly is opportunities, mitigation methane of important emissions are there number that show A analyses methane change. climate of addressing impacts term lifetime, near the atmospheric mitigating for tactic short effective particularly and potency high its to Due Source includes coalmines,gasleakages,andfugitiveemissions. Note mainly industry. (SF hexafluoride sulphur and (PFCs) perfluorocarbons (HFCs), Hydroflurocarbons include *F-gases Methane isthesecondmostimportantgreenhouse gas in thenaturalgasandcoalsectors(IEA,2008a). carbon dioxide equivalent (CO sector, emissions of methane are expected to increase 23% to nearly 8 million metric tonnes (Mt) of the availability of fossil fuel and resources. While carbon dioxide (CO economies emerging of have growth economic emissions the by Energy-related driven 1990, 2006b). since rapidly rising 2006a, been EPA, (U.S. countries, countries OECD in non-OECD emissions in GHG 59% of and 82% for cause accounts a sector are energy change The concern. climate major for of implications their and emissions GHG associated in increases but growth, economic sustainable for needed are supplies energy affordable and reliable Secure, Executive summary sectors (365Mt CO CO Mt (496 gas the in primarily realised are reductions CO Mt (925 reduction 37% a 2015: before CO 10/t USD has which 10M, ACT scenario term (U.S. EPA, 2006; IEA, 2008a). Figure 2 shows that under the

Gigatonnes of CO2 equivalent : Industry CO Industry : 10 20 30 40 25 35 15 0 5 : IEA, Carbon World EnergyOutlook2008 2 includes non-energy uses of fossil fuels, gas flaring, and process emissions. Energy sector methane sector Energy emissions. process and flaring, gas fuels, fossil of uses non-energy includes dio 2 xide -eq). 2 -eq) by 2020, driven by growth in emerging economies, particularly Me . th an e 2 2 -eq) compared to the baseline scenario. These early These scenario. baseline the to compared -eq) -eq incentives, significant methane reductions occur reductions methane significant incentives, -eq Nitr ou Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery o s xide 2 -eq), coal (214 Mt CO Mt (214 coal -eq), 2 ) is the biggest concern for the energy Energy Technology Perspectives F-gases* 6 ) from several sectors, several from ) 2 -eq) and waste and -eq) Agricultur Ener Decay Defor Industr W ast gy e estation y e

© OECD/IEA, 2009 10 Figure 2 explosion hazards while mitigating odour nuisances. These co-benefits are attractive in particular particular in attractive are co-benefits These nuisances. odour mitigating while hazards explosion of management improved via sector,animal waste. Reducing agricultural emissions of the methane at coal in mines and landfills also particularly addresses quality,dangerous water benefits also quality improves and ozone related-mortalities decrease (West, J. Methane mitigation offers a number of additional co-benefits. When emissions are reduced, local air using itasfuel,meanthatmethanemitigationintheenergysector meritsacloserlook. operations. Methane’s climate characteristics, coupled with the economic benefits of recovering and these for revenue of source new a offering systems, management manure agricultural and landfill and contribute methane to of profitability.losses and Methane leaks reduce can to also be industry recovered gas and for oil energy the production in from implemented the be coal can mining, that competitive cost- GHG mitigation most options the for of the one energy is sector.methane using There and are recovering a number benefits, of environmental efficiency its measures to addition In Global ClimateChange,2003). global warming that is as large as similar reductions in CO non-CO other (and methane in reductions feasible GHG stabilisation goals (US Climate Change Science Program (CCSP), 2007). Figure 3 shows that international with consistent forcing radiative in increases future limit to needed levels abatement the short term. It has been estimated that such reductions could contribute as much as one-half the Also, substantial reductions in radiative forcing can be achieved by reducing methane emissions in Source: IEA, opportunities inthenearterm There are importantmethanemitigation andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery profitable. recovery methane make to sufficient always not is finance carbon where economies, emerging in . Othernon-CO Global methane emissions (Mt CO2 eq) 1 2 3 4 5 6 7 8 000 000 000 000 000 000 000 000 0 2000 Energy Technology Perspectives 2 GHGs includenitrous oxide,PFCs,HFCsandsulphurhexafluoride. 2005 2010 2015 (2008). 2020 2025 2 GHGs) 2030

2 over the next 50 years (Pew Center on could make a contribution to slowing to contribution a make could 2035 et al 2040 ., 2006). Methane mitigation 2045 2050 BA A A A A CT50M CT25M CT10M CT50 SE

© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery Figure 3 in meetingclimatechangeandenergygoals. call to of action energy to sector governments methane worldwide mitigation about the importance and interconnection rules for power sales. It is hoped that this can as report serve a resource and a rights ownership methane clarifying and incentives providing awareness, raising targets, setting in best share to and awareness practice policies. global This is report a raise – start it contains to a number done of examples of be government leadership to needs more much in that clear framework is policy It use place. and recovery methane comprehensive a has country no that is key finding a sectors, certain for barriers individual addressing success had have countries some While grid tosellbackpowerthatisgeneratedatlandfills,coalmines,oragriculturaloperations. relating to methane ownership at coal mines and landfills and in obtaining access to the electricity lost the of value the overcome to barriers and regulatory sector.and gas legal and also oil are the There in emissions particularly fuel, methane of magnitude the about awareness increase to is projects use and recovery methane sector.for energy challenges the main in the mitigation of One methane of potential the of realisation full the prevent which exist barriers of number However,a Source Mean temperature impactsofa reduction in20 Degrees celsius -0.4 -0.6 -0.8 -0.2 0.4 0.6 0.2 : Pew CenteronGlobalClimateChange,2003. 0 CO 2 5 0, maintainedto2100 Non- CO 2 5 0% emissions CH 4 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

So x GHGs Non- 2050 2100

© OECD/IEA, 2009 11 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Figure 4 explosion hazards. facilitiesmines,coalgaslandfills,fromimprovealsoand safetycanoil conditions and reducing by reducingend-user powerandplantemissions CO of odours.conventionalProducingof use energyresources,avoidsthe methane energy fromrecovery and pollutionenvironmental local reduces and developmenteconomic local promotes that source clean-burningenergyvaluable, a providesmethane of use andcollection the Thus gas. natural of near-term progress toward climate change mitigation. In addition, methane is the primary constituenton a and 100-year basis), and has a atmosphericshort lifetime, economic, methane reductions produce safety, important energy, importantCO than potent more times (25 GHG ofpotent a is methanebecauseFirst, environmentalbenefits. number a provides emissions methane Reducing Source Note and breakdown ofanthropogenic sources Methane emissionscontribution andusepractices(U.S.CCSP,awareness andactiontoputinplacemethanerecovery 2006). global increased to part in due is This slowed. has growth methane of rate overall the increase, to continued have concentrations methane while decade, past the However,in doubled. than more from natural sources. Over the last two centuries, methane concentrations in the atmosphere have are rest the and sources these from come emissions methane of 60% Approximately activities. oil and gas natural and landfills, coal-mining, agricultural, include sources emission Anthropogenic CO Gt 44 over to amounted emissions GHG global 2005, (FigureIn emissions 4). GHG global of 16% for accounts Methane is emitted from a variety of both anthropogenic (human-induced) and natural sources and Methane emissions:context use orforlocal gas orelectricitynetworks. own their for energy of source important an as use and recovery methane view should operations energy important an as reductions efficiency emissions opportunity, methane while view coal can mine sector methane, solid gas waste and disposal oil sites The and manure report. management this of focus the are sectors livestock and management waste solid mining, coal gas, and oil The Gr Methane Carbon Nitr (land for eenhouse 16% : Entericfermentationtakesplaceinthedigestiveprocessesofruminantanimals( estr ous : U.S.EPA, 2006a. use y) dio o xide 19% and xide gas 9% emissions CFCs, 2 euvln eisos (CO emissions -equivalent PFP 1% s, HFCs, SF6 Carbon cement) (fuel dio and 55%

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© OECD/IEA, 2009 1 3 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Figure 5 estimated togrow substantially indevelopingregions Methane emissionsfrom oilandgassystemsare economies (U.S.EPA, 2006a). developing countries like Brazil and China having the largest growth, due to their rapidly expanding with 2020, to 2005 from 57% increase to projected are Emissions emissions. methane most the EPA,(U.S. 2006a). emissions As shown methane in global Figure 5, total Russia, of the United 17% States, Iran,for Mexico account and Ukraine systems contribute oil and gas natural Currently, Country emissions trends equipment and systems, operation and maintenance procedures, and equipment conditions. atmosphere.greatlyfacilityEmissionsfrom facilityfunctionlargelytypestoof arethe vary and aof operationpneumaticof devices powered high-pressureby natural gasthatthenis released intothe normalfrom or service, of out taken are they pipelineswhen compressorsor from gas theventing from result can emissionsexample,For disruptions. system andmaintenance, routineoperations, normal from result primarily and process-relatedventing or leaksunanticipated be can Emissions come from oil and natural gas production and natural gas processing, transmission and distribution. gas, natural which ofis producedcomponent on its primary own theor in combinationis Methanewith oil 2008a). as associated(M2M, annuallygas. Theatmosphere majority the of emissionsto (approximately1 (Bcm)meters cubic billion 85releasing worldwide, After enteric fermentation, the oil and gas sector is the second largest anthropogenic methane source Oil and gas Energy sector methane mitigation: a closer look Source

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© OECD/IEA, 2009 1 5 16  barriers totheirimplementation: important are there practices, and technologies mitigation proven of number a are there Although Barriers to methane mitigation technologies and practices methane emissionreductionsandgassavings. United States, the wider application of these programmes has the potential to yield both substantial operations be wherever distribution they take place. and In can countries transmission, with large processing, oil and programmes gas gas infrastructures, such as and Russia DI&M and production the gas repairs. and oil leak to cost-effective applied and efficient accurate, more to leading which use a variety of leak detection and measurement technologies to and identify quantify leaks, An example of these mitigation activities is directed inspection and maintenance (DI&M) programmes, body ofknowledgeaboutemissionssourcesandvolumes. of methane emission quantification technologies, IR cameras are contributing to a rapidly improving see previously invisible hydrocarbon emissions as black smoke. Used in conjunction with a variety These cameras operate as normal video cameras, but with an IR component that allows the user to be to proven have emissions transformational technologies in raising awareness about methane emission sources and volumes. hydrocarbon invisible otherwise see to used be can that cameras (IR) infrared example, For capabilities. detection emission methane improve to helping are years recent in technology in However,detect. improvements to difficult typically are leakages Methane a of use optimal make not resource. does fuel valuable but emissions, methane the addresses a is that Flaring option emissions. mitigation methane releasing avoid to methods as recovery oil oil enhanced into it for reinject fields or gas the use directly can sector gas and oil the options, these to addition In management of improvement compressors; centrifugal on practices and seals operational procedures; and enhanced dry leak detection of and measurement programmes. installation or devices pneumatic low-bleed to conversion as such upgrades, equipment or technology setting. include any options in applied be can that practices management best proven of number a however, are, There things. other among gas, of natural price local the and infrastructure gas and oil the of condition the sources, emission of concentration the on based country to country from greatly vary sector gas and oil the in emissions methane reducing for opportunities Cost-effective from pneumaticcontrolsoperatedbyhigh-pressurenaturalgas. in pipelines. connections Methane emissions can or also occur joints from standard escape oil or and gas processes, seals, such can as pump releases valves, methane worn example, pressure, for through, extreme atmosphere the under into components system through moves gas the As Mitigation technologies and practices andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery

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© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery programme support and technical assistance; peer networking; voluntary record of reductions reductions of record transfer; voluntary technology networking; peer and assistance; sharing technical and Participants information support from companies. programme benefit partner Program STAR by Gas implemented Natural the in successfully technologies been have mitigation that methane on practices and information technical comprehensive partnership, this of compiled result a has As EPA emissions. that methane reduce and partnership efficiency operational voluntary improve a is Program STAR that and practices technologies Gas oil to cost-effective and proven, adopt gas companies encourages Natural EPA) (U.S. Agency’s emissions Protection methane Environmental US The encourage results. to significant policy achieved has and sector gas and oil the in partnership reductions voluntary a used has States United The Voluntary public-private partnerships: the United States   to designed encourage methanemitigationintheoilandgassector. examplesinclude: policies Themostimportant governmental of examples few a only are there However, policies. targeted To address these barriers, some governments have initiated successful outreach programmes and/or Country methane reduction efforts    reducing in recognition. accomplishments public and voluntary emissions; their methane of record permanent a create companies where

. that followsasimilar model.See Note that Natural Gas STAR is a domestic US programme; there is also a companion Gas STAR International programme invest in the necessary mitigationtechnologies. invest inthenecessary that policies well-developed strong, Without sector. promote execution of programmes to reduce gas methane emissions there little is incentive often to reduce and to oil technologies the of in implementation emissions the methane enforce and encourage to framework policy framework policy strategic of Lack are losses gas natural that industry gas insignificant inthecontextoftheiroveralloperations. and oil the in mentality a as well as infrastructure inefficient of development the in resulted has “by-product” a as gas natural and hydrocarbon and detection emission methane to quantification equipment. access Additionally, of a historical lack focus on oil or as the emissions dominant value-producing these quantifying on focus of lack a of result the be can This operations. gas natural and oil from emissions methane of Awareness implement methanereductions. to ability operators’ gas and oil hinder significantly can activities mitigation and quantification,identification, methane for providers technology and service local of lack A regions. some in Access challenging orimpossible. well is alone value gas natural of means by cost-effectiveness achieving values, international below is price gas natural the where locations in Additionally, revenue. gas natural additional failure toachievetargets. for penalties with reinforced approach best the determine industry let to mechanisms flexible sector,the for by target reduction methane national a develop supported to is emissions sector mechanisms flexible and targets Strategic withtheoilandgassector. partnerships have implementedvoluntary transfer,knowledge for framework a create to and practices, management best countries some partnerships public-private Voluntary . While cost-effective technologies and practices exist, there may be access limitations access be may there exist, practices and technologies cost-effective While . . Oil and gas companies and governments are often not aware of the actual volumes http://www.epa.gov/gasstar/international/index.htm . Most countries do not currently have a comprehensive a have currently not do countries Most . . To improve awareness about methane emissions and emissions methane about awareness Toimprove . . A strategic approach for addressing oil and gas and oil addressing for approach strategic A . Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery l .

© OECD/IEA, 2009 1 7 18      the with following features: 60, Directive via implemented industry (EUB) petroleum upstream Board achieving the for Utilities requirements while venting and and flares flaring Energy active Alberta’s 1990s, these the regulate in to reductions, significant approach flexible comprehensive, a create To renewable hydrocarbon resource that could be put to beneficialnon- use. a wastes gas flared that in problematic still is However,flaringventing. to preferable is and 0.37 and flaring 2009). (0.35(Johnson, venting) bcm 0.720 was venting and flaring total, this of annually; industry gas upstreamestimatedproducedyeartheperandanburnthatbcmoilby 1.1 active Alberta flares in is 500 Currently,gases. Flaring5waste thanthe handle more areto there usedmethods the of 2009). one among (Johnson, volumes gas significant represents amount remaining production; the gas howeversolution total of 95.8% of rate conservation a achieved has Alberta in industry been recognised as an important element in the province’s economic development. The oil and gas long hasutilisation and production energy (CAPP,this of environmentalmanagementThe 2009). in the oil and gas sector. Alberta produces 77% of Canada’s natural gas and 38% of the nation’s oil The province of Alberta, Canada has a strategically designed policy for reducing methane emissions Strategic targets and flexible mechanisms: Alberta, Canada Natural GasSTAR InternationalProgram. reported 6.7 Bcf in emissions reductions for 2007 and a total of 14.4 Bcf since the inception of the STARpartners Gas International Natural worldwide. sector gas netural and oil the from emissions methane reduce to opportunities increasing significantly operations, international include STARGas to Natural expanded EPA (M2M), Partnership Markets to Methane the of support in 2006, In (based uponanaveragegaspriceofUSD partners domestic reduced methane emissions by 2007, 92.5 Bcf,in Specifically,which added nearly States. USD 650 million United to natural gas the sales in reductions emissions methane of Since 1993, Natural Gas STAR partner companies have reported nearly 677 billion cubic feet (Bcf) andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery

. The Alberta Directivescanbeaccessed at: . TheAlberta . Thisdoesnotincludeadditionalfacility-level andtestwellflaring. . Solutiongas,alsoreferredtoasassociated gas,isgasproducedinassociationwithoilproduction. . . For more information, see http://www.epa.gov/gasstar/accomplishments/index.htm Accomplishments oftheNaturalGasSTAR Program canbeaccessedat Directive The Regular and transparent assessment via a A A short-term province-wide A from non-compliantfacilities. includingvolumesofgasflaredandventedforeachoperatingcompany.data forAlberta, of theoptionstoeliminateorreduceflaring. onacombined basis. economics ofgasconservation and reductions. targetsdidnotresultinsatisfactory if thevoluntary targets of up to 70%, along with a decision tree support tool ehdlg fr etn te cnmc feasibility economic the testing for methodology rge o enforcement of trigger clustering requirements clustering

19), leading to right suspension of to operations produce or removal of an operator’s http://www.epa.gov/gasstar/international/index.htm

Because flaring largely destroys methane, it reduces GHG emissions GHG reduces it methane, destroys largely flaring Because voluntary reduction target of 15%-25% of target reduction voluntary that allows operators to demonstrate that they have considered all whereby multiple facilities in close proximity must consider the consider must proximity close in facilities multiple whereby f cmay al t cml wt Drcie 0 o related (or 60 Directive with comply to fails company a if http://www.ercb.ca/docs/documents/directives/Directive019.pd regulatory regulatory backstop

7.00 perthousandcubicfeet). public annual report l . f osriguiiig h slto gas solution the conserving/utilising of requiring more prescriptive requirements

showing all flaring and venting l . ; with long-term reduction long-term with ; f .

© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery Figure 6 through natural fissures or other diffuse sources. sources. diffuse other or fissures “drainage”) natural through called (also degasification atmosphere the to escape also might with methane mines, surface and mines systems abandoned In systems. ventilation their augment must “gassy” they sufficiently are that mines underground Some systems. ventilation through removed is it so activities. due to mining strata rock surrounding and coal the from released methane to refers (CMM) methane mine Coal Coal mine methane in theoilandgassector. partnership with industry to achieve a common goal of cost-effective methane emissions reductions framework a forming in and opportunities, reduction the emissions and emissions methane on collection data for creating in leadership government of importance the demonstrate models These Source associated withadrop ingasflaringvolumes Alberta hasrealised majoremissionsreductions andiseithersenttomarketorusedasfuel. isconserved of allsolutiongasproducedinAlberta gas flaring has in been Alberta reduced by 76% since the baseline year of 1996. As a result, 96% solution that shows manner.6 cost-effective Figure most the in targets the outperformed industry fact, in flaring, in reduction significant a was approach flexible comprehensive, this of result The

. 6 3 as anaturalgasresource. immediately prior to or during coal mining activities, and thus has climate change impacts; coal bed methane is harvested Coal mine methane should be distinguished from coal bed methane: coal mine methane is the gas that is released is that gas the is methane mine coal methane: bed coal from distinguished be should methane mine Coal Solution gas flared (10 m ) 1 1 1 : Alberta EnergyandUtilitiesBoard. : Alberta 000 200 400 200 400 600 800 0 1996 2001 In underground mines, it can create an explosive hazard to coal miners, to miners, coal hazard an explosive it can create mines, In underground 2002 2003 2004 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery 2005

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© OECD/IEA, 2009 1 9 20 Figure 7 ventilation systems keep in-mine methane concentrations well below the explosive range. They These range. explosive mines. the the below well through concentrations methane air in-mine keep of systems quantities ventilation massive move that systems ventilation using large-scale reasons safety for mines underground active from removed be must Methane mines. coal A number of technologies are readily available to recover and use methane from active or abandoned Methane mitigation technologies and practices sealed ortheextenttowhichithasflooded. been has mine the which to extent the on depending methane, emit also mines coal underground (closed) operation.Abandoned mining the of capacity production the and mined, being seam coal of depth the mining, of method the seams, coal the of porosity and permeability the coal, the of Many factors affect the quantity of methane released during coal mining, including the gas content Source continue toseerisingCMMemissions China andothercoalproducers the are Australia and India largest producers,togetheraccountingforabout75%ofglobalproduction(IEA,2008a). States, United the China, 2008a). (IEA, 2020 to 2000 from 20% grow to projected are emissions CMM depths, greater increasingly from extraction coal enable that growth. As a by result developing of country this growth, combined with technology improvements driven years, several past the in annually 6% roughly at increased has Worldwideproduction coal EPA,(U.S. 2006a). emissions methane anthropogenic global total of 8% contributes mining Coal Country emissions trends andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery for ventilation air methane (both thermal and catalytic) have been demonstrated in Australia, the Australia, in demonstrated been have catalytic) and thermal (both methane air ventilation for produce heat, electricity, or refrigeration (U.S. EPA, 2003). Several different oxidation technologies to used be can energy thermal resulting the and oxidised be VAMcan concentration low very that point the to progressed Technologicalhas (VAM). development methane air ventilation as known release large amounts of dilute methane (typically less than 1% methane in air) to the atmosphere,

CH4 emissions (Mt CO2 equivalent) 100 150 200 250 300 350 400 450 500 : U.S.EPA, 2006a. 50 0 2005 2010

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© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 10.     Some ofthebarriersinclude: Although there are significant benefits and scope for CMM recovery, projects face several challenges. Barriers to methane mitigation internal combustionengines. and cells fuel for source fuel a as or feedstock; manufacturing as or (LNG); gas natural liquefied ventilation air or supplemental fuel for boilers; for vehicle fuel as compressed natural gas (CNG) or mine for source heat a as drying; coal for used be also can It systems. pipeline gas natural to sold the drained gas. CMM can be used for power generation, district heating, boiler fuel, or town gas, or the gas quality, especially the concentration of methane and the presence of other contaminants in on depend CMM recovered for uses Specific CMM. for uses of variety a are there captured, Once 2008). EPA, (U.S. contaminants remove and gas the purify to available widely Technologiesare It is possible to recover and use the drained gas depending on its quality and on the desired end-use. remove gasfromthevoidspaceofabandonedundergroundcoalmines. to or mines surface at mining of advance in used be also may Degasification boreholes. measure cross- or drilling long-hole or short-hole in-mine include techniques degasification recovery.Other gas the maximise to used be may drilling drilling directional or wells lateral to Advanced surface as such techniques 2004). (IRG, States United the in mines of number a at used being currently are and mines, underground abandoned or active at used begin,be operations may mining before methane and drilled are holes where systems, degasification Pre-mining operations. gas gob employ commonly most systems Degasification levels. safe to concentrations methane in-mine keep to mines gassy especially at Degasification systems are employed at active underground mines to augment the ventilation electricity, systems to methane air ventilation generating 6MWofpower. converts that project scale commercial first world’s Australia the in is project (WestVAMP) Project Methane Air Ventilation Cliff West The China. and US, 11. 12.

Thedebris whichfill theminethesupportsafter are removed andtheroofandwalls collapse referredis the“gob”. asto of high-quality, usually 30%-80% methane; however, over time its qualityMethane declines existing as the methanewithin mixes the with air.debris is referred to as “gob gas”, and is released into the mine as it collapses. Gob gas is initially More informationontheWestVAMP projectcanbefoundat in thetechnicaloption seriesat http://www.methanetomarkets.org/coalmines/index.ht For more informationonCMMmitigationtechnologiesandpractices,visit http://www.environment.gov.au/settlements/industry/ggap/bhp.htm Financial centralised generation plants, and may be located at some distance from regional electricity grids. Assuch,therecanbeeconomicchallengesconnectingwith theelectricitysystem. regional from distance some at located be may and plants, generation centralised interconnection Grid local the to technologies situation andgasquality. tailor to ability the include barriers Other resources. CMM develop Technology issues complicateordelayprojectdevelopment. ownership multiple cases, such In rights. land surface the and gas, the coal, the for owners separate be may there countries, some In development. CMM for priority and to rights the on ownership CMM on clarity of Lack for capital challenge. project funding,andalackofadequatefinancingisanimportant investment internal adequate have not do mines coal many Further, gas. natural . Many CMM projects are not cost-effective at standard market rates for power and power for rates market standard at cost-effective not are projects CMM Many . . Developing countries often lack access to appropriate technology to assess and assess to technology appropriate to access lack often countries Developing . . Coal mine methane projects are relatively small compared to traditional to compared small relatively are projects methane mine Coal . 10 12

www.epa.gov/cmop/resources/technical_options.htm . In most countries, there is a lack of clarity in regulations in clarity of lack a is there countries, most In . 11 el, o eoe ehn drn ad fe mining after and during methane remove to wells, m ; therearealsoanumberofutilisation technologies described Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

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© OECD/IEA, 2009 21 22 for the duration of a coal mining licence, after which CMM use requires a renewed licence (U.S. licence renewed a requires use CMM which after licence, mining coal a of duration the for including activities, CMM-related for responsible exploration, extraction and is processing. CMM ownership rights are transferred to a mining Authority company Mining Federal the Germany, In Clarification of property and gas ownership: Germany the challengesofgridinterconnectionthatpreventsomeCMM powerprojectsfromgoingforward. address thus and access grid with developers project provide also policies German and UK these CMM energy operators also face challenges in accessing electricity markets on a level playing field; Treasury,(HM CCL 2002). the paying from CMM from generated electricity exempts 123 Clause clean,Levyencourage energy.Change to renewable Climate (CCL) the implemented has example, years (IEA, 2008b). Other countries 20 are using tax exemptions CMM. to for The support United Kingdom, for price guaranteed a provides It a gas. from landfill and generated CMM electricity including sources, of of feed-in number the for pay must operators grid that tariffs EEG) fixed or provides (Erneuerbare-Energien-Gesetz (2004) Act Sources Energy Renewable the Germany, In methane projects,includingtheinnovativeWest VAM powergenerationproject. CliffColliery mine coal of number a to grants provided and funded actor,directly government having leading a power.is produced Australia for rates higher-than-market pay to utility the methane mandating by recovery and energy renewable promote tariffs Feed-in mechanisms. financial or market-based of variety a adopting are governments projects, use CMM some facing gap Tofinancial the bridge Australia, Germany and the United Kingdom Financial incentives and interconnection:     policiesinclude: policy developmentandimplementation. Themostimportant targeted through barriers these addressed have that countries of examples good some are There Country CMM reduction efforts  andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 13. led has and CMM, Germany tobealeaderinterms ofCMMutilisationperavailableminesite. of ownership over disputes resolved has framework legal This 2009). EPA,

For a summary, ofCMMOpportunities: seetheAustraliachapter oftheM2MGlobalOverview www.methanetomarkets.org/resources/coalmines/docs/overview_ch2.pd comprehensive frameworkinplace. policy frameworks. While these are promising developments, there is still no that country has a frameworks policy ownership, and signal CMM the government’s priorities, some comprehensive countries are developing of comprehensive Development address thisgap,governmentsareprovidingaidviaknow-howandtechnologytransferefforts. Tothem. implement to capacity technological and training the lack that economies developing barriers technology address to building Capacity priority ofuse,somecountrieshaveclarifiedownershiprightsandpriorities. ownership gas and property of Clarification CMMuse,includingfeed-intariffs,grantsandtaxincentives. successfully usedtosupport incentives financial appropriate of Creation leases,regulationofCMMsafety,for property andbeneficialuse. for CMM development and use, and fail to address (and coordinate) needs like project approval frameworks policy comprehensive of Lack . Many countries lack a strategic policy framework policy strategic a lack countries Many . . To. and ownership CMM about confusion address A ait o eooi icnie hv been have incentives economic of variety A .

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© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery undertake any responsibilities for grid stability. Also in April 2007, the Ministry of Finance issued Finance not of Ministry the do 2007, April stability.in grid Also and for responsibilities any competition undertake price market from exempted also were owners plant power CBM/CMM price. subsidised a at electricity surplus purchase should who operators grid by priority given be CBM/CMM with Electricity local government. In the same month, NDRC issued a tariffs – both transportation determined by the government – and end-user price determined by the costs), production on (based price ex-plant on depends networks pipeline city via distributed gas Reform Commission (NDRC) issued a To increase CMM output and address market barriers, in April 2007, the National Development and mining. coal to prior prevention, on focusing approach, gas extracting when first and the use of technology by the government, and oversight safety standards safety a implement mines coal that ensure issued authorities Council State the 2006, Utilisation and June Extraction CBM/CMM up in Speeding safety, mine coal address To use. recovery and CMM govern to policies of number a enacted has government Chinese the projects, of number of of and host the largest CMM, emitter leading As the world’s is China. example Another equipment CMM (B. Mendbayar,on 2009). exemptions tax import including incentives, tax and issues, ownership gas requirements, degasification and standards safety technical including: issues, several address will policies these resources; gas/CMM natural and mines coal include may clarify which areas to overlapping policies additional developing now is government The area. given a for license mining a obtain to right exclusive the has holder license exploration the whereby development, CMM for licences issuing for scheme a provides amendment This coal. including resources, mineral all of CMM. In 2006, the Parliament revised the 1997 Minerals Law, which leasing and incentives providing covers rights, CMM clarifying in challenges the recognised has Mongolia exploration and mining Development of comprehensive CMM policy frameworks: Mongolia and China India. in and with of the continuing a recent establishment Clearinghouse, Methane Coalbed clearinghouse has China EPAthe with 1994 in U.S. beginning The countries, several world. in the clearinghouses CMM establish around to helped and Program Outreach Methane Coalbed the via US the within both building, capacity in work of amount tremendous a done also has States United The (IEA, 2009). and utilisation on technologies CMM and recovery practices, loan delivery, and technology transfer well as bilateral donors, through are targeted providing training resources workshops and expertise who can manage the technology and equipment. The World workers Bank skilled and of Asian training Development and Bank, projects as of analysis economic operation, mine technologies, CMM recovery and utilisation, CMM international financial institutions are providing valuable capacity in in building efforts expertise and understanding basic lack countries developing many that Given international financial institutions and the United States Capacity building to address technology barriers: 15. 14. http://www.unece.org/energy/se/pdfs/cmm/sessfebdec06/Topic6/Vitchev_RFI2.pd The ChinaCoalInformationInstitutenow managestheClearinghouse;formoreinformationvisit The United Nations Economic Commission for Europe (UNECE) has been active in this area and is working on facilitating www.cmmclearinghouse.cmpdi.co.in www.coalinfo.net.cn/coalbed/coalbed.ht CMM finance.Fore moreinformationonCMMfinancing,visit 15 14 which requires that electricity generated by CBM/CMM power plants power CBM/CMM by generated electricity that requires which / m ; theIndiaCMMClearinghousecanbe accessedat Notice on CBM/CMM Price Management Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery , which requires that local land and planning planning and land local that requires which , Notice on Executing Opinions on Generating

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© OECD/IEA, 2009 2 3 24 rjce t eprec sed got i lnfl mtae msin bcue f expanding of because emissions increased anaerobicconditionsconducivetomethaneproduction. methane landfill with landfills sanitary in to dumps open unmanaged from away trend a with combined growth populations, steady experience are recovery Europe to LFG Eastern and projected improved Asia in and regions LFG developing However, 2006a). combust EPA, (U.S. and technologies capture to requirements regulatory programmes, increased composting and recycling expanded as such landfills, from growth emissions future methane reduce in potentially and constrain will that policies have countries developed Most of methaneemissionsfromMSW(Figure 8). contributors main the are Asia Southeast and Canada Russia,Currently, China, States, United the 2020. and 2005 between 9% by grow to expected are landfills from emissions methane Global emissions. methane global total of 14% contributes management (MSW) waste solid Municipal Country emission trends waste disposalsite,theorganiccontentofwaste,andclimate. open dumps. The amount of LFG generated depends on a number of factors, including the type of and landfills sanitary in conditions anaerobic under waste organic of decomposition bacterial the of process natural the through produced is and methane, 50% approximately is (LFG) gas Landfill Landfill gas recovery and use is effectivelymonitoredandimplemented. in development CMM on forward move China; the next to challenge for the national basis government will be to ensure a that the full set of provides measures policies of set comprehensive This    CBM/CMM an issued Protection Environmental of Ministry the 2008, April Finally,in is usedonsiteormarketedforresidentialuseasachemicalfeedstock. it if subsidies, financial to entitled is China within extraction CBM/CMM in engaged enterprise any Enterprises Utilisation and Development CBM/CMM Subsidising on Opinions Executing andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery http://www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=2085. 16.

The IEA’s 2009 report IEA’sThe report 2009 adapt international CMM technologies to Chinese circumstances. The report can be downloaded at adapt internationalCMMtechnologies to Chinesecircumstances.Thereport to continuing (4) and mines; coal small and medium for building capacity (3)increased development; policy/subsidy and elevated attention to CMM; (2) electric involving and utilities all use – stakeholders in – CMM particularly recovery recommendations to address key barriers to Chinese CMM capture and use, including (1) continued government reform Coal mine drainage systems with a gas concentration of 30% methane or higher are prohibited CBM drainagesystemsareprohibitedfromemittingCBM; If themethaneconcentrationislessthan30%,allowed tobereleased. from emittingthemethane( , whichdictatesthefollowing: Coal Mine Methane in China: A Budding Asset with the Potential to Bloom Potentialto the with Asset Budding A China: in Methane Mine Coal e.g. , theymusteitheruseorflarethegas);and 16 Emission Standard of Standard Emission made a number of number a made whereby

© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery Figure 8   However, barrierspreventthewideruseofthesetechnologies,including: use. gas landfill for options many are there and mature are technologies use and collection LFG Barriers to LFG use a cleanenergyresource. use to opportunity an misses it emissions, methane reducing in effective proven has flaring while fuel. Historically, flaring has been the most common manner of mitigating LFG emissions; however, electricity production, used directly, or for upgraded used to flared, pipeline-quality be natural may gas it or collected, alternative is vehicle gas the Once processed. be to point a to gas collected the directs that vacuum a and wells of series a involving system proven a using extracted be can LFG Methane mitigation technologies and practices Source: U.S.EPA, 2006. are expected togrow, particularlyindevelopingregions Methane emissionsfrom solidwastemanagement 

CH4 emissions (Mt CO2 equivalent) consider LFG use, they will first need to improve solid waste management practices, which practices, requires additional capitalandhumanresource investments. management waste solid improve to need first will they use, LFG consider can countries these Before dumpsites. managed minimally or open in waste solid municipal practices management waste Solid the gridtoselltheirpoweroutput. to projects power LFG connecting in barriers technical and economic often are there projects, grid electricity the to Interconnection anduseprojects. recovery LFG existing with landfills at those from different quite are conditions site disposal or climatic relating to predicting the LFG flow from waste disposal sites in developing countries, where the scheme unless it will be sufficiently profitable. Furthermore, there is higher risk and uncertainty Financial 700 800 900 100 200 300 400 500 600 0 . Investors are unlikely to put forth the capital needed for an LFG capture and utilisation 2005 2010 Dvlpn cutis r mr lkl t dsoe of dispose to likely more are countries Developing . . As with other methane recovery electricity generation electricity recovery methane other with As . 2015 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery 2020

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© OECD/IEA, 2009 2 5 26 uncertainty that LFG developers typically face when attempting to negotiate a grid connection connection grid a negotiate utility. to incumbent the attempting with when face typically developers LFG the that addresses uncertainty directly applications interconnection for costs the and timing the in the transparency systems, energy LFG most This fee. a 2 application USD 500 including includes and or less days to 150 systems, shortened been has process larger For sizes. various of systems DG for state The the tariff. 2002, generation In model a to criteria the uses determine consistent fees face. develop for and process interconnection timelines application to often Collaborative (DG) landfills, Generation from Distributed a recovery initiated methane including generators, smaller- scale that challenges economic and uncertainty the address to requirements standardised interconnection designed have Massachusetts, including States, United the in states of number A Streamlined interconnection policies: Massachusetts (IEA,2008b). ofalargeandgrowingdomesticbiogasmarketinthecountry part phased out. The German EEG FIT scheme is credited with encouraging landfill gas development as or lowered be can rates FIT cost-competitive, become and built are projects certainty.As investor for incentivising electricity from LFG. FITs are typically set for number a of certain years to allow for As discussed in the CMM section above, the feed-in tariff (FIT) mechanism is a proven mechanism Creation of financial incentives: Germany    policies.  targeted using countries by addressed been have Governments haveusedmechanismssuchas: above listed barriers the of Many Country landfill gas reduction efforts  andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 17.

For more information, see www.masstech.org/policy/dgcolla at specificsites,aswellprovideobjectiveinformationontechnologyoptionsandcosts. Education and awareness campaigns that hasbeenusedtochangetheeconomicsofLFGuse. these requirements, driven by air pollution and/or climate measures, is another Improved policy waste mechanism management regulations that include LFG collection and flaring market theirpower. to grid the access to seeking projects for process application the streamline to help and size, smaller-scalefor field playing recovery.energy LFG like projects project to tailored be can They Streamlined interconnection policies anduse. methane recovery LFG in renewable standards portfolio or feed-in tariff schemes, or via directed tax credits toward Creation of financial incentives ofvariousLFGuseoptions. performance climate change risk. Waste disposal sites also lack clear, unbiased information about costs and Policyand quality air local on emissions LFG of impact full the understand to fail often makers the value of the lost fuel, especially in developing countries with rapidly growing waste sectors. Awareness . There is the need to increase awareness of the existence of LFG emissions and emissions LFG of existence the of awareness increase to need the is There . www.mass.gov/dte/restruct/competition/distributed_generation.ht 17 b . . Countries are creating financial incentives . Standardised interconnection requirements help level the . These campaigns collect landfill methane emission data m

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© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery methane emissions from manure management are projected to increase by 21% between 1990 between 21% by increase to projected are management manure from emissions methane Global emissions. methane anthropogenic total of 4% roughly contributes management Manure Country emissions trends storage or treatment of type the facility, of climateandthecompositionofmanure(U.S.EPA, 2006b). function a is operations management manure from in emitted material organic of decomposition anaerobic the livestock manure (mainly from during swine, cattle and some emitted poultry operations). and produced is Methane Manure methane recovery two on focus to reorganised knowledge(M2M,2009a). was barriers: limitedinformationandinsufficientin-country Subcommittee the and maintenance, and operations extraction LFG system improved for capacity build and data collect to need sector’s LFG the recognised community. benefits the the to market development project and of financing find feasibility, project project to assess barriers them overcome helping to by stakeholders development with partnerships forms LMOP use. and recovery LFG encouraging by landfills from emissions methane reduce to helps that programme assistance voluntary a (LMOP), Program Outreach Methane Landfill EPA U.S. the example is States An United goals. the their from achieve policies support the help that ensuring can by that approaches policy strategy other the important of an all is LFG of value the about stakeholders Educating Education and awareness campaigns: the United States landfills(IEA,2008c). safer sanitary cleaner,toward sites dump the of improvement and upgrade the fund help to source revenue new ban.way,organics this the In repeal to process the begun has a provide can use LFG Ministry the problem, this Recognising viable. economically as seen not was use and recovery however,LFG to be dumped at waste sites, leading to significant a methane emissions. While the as ban was in place, enforcement, in difficulties continued faced wastes organic result, a As rules. new the implement to failed municipalities of number immediately ban The landfills. into of dumped be Ministry not separately and processed India’s and MSW,organised be waste with organic all associated that required Forests problems and Environment environmental the recognising 2000, In waste solid industry.the in business doing of part a system collection LFG the of cost the making by use hazards safety and LFG of viability pollution economic the change also regulations air These venting. LFG uncontrolled by remove caused Protection to designed Environmental are of regulations These (Ministry 2008). management PRC, landfill the of of part as flaring and capture LFG released Protection Environmental of Ministry the China’s 2008, April In flaring. requiring and regulations capture enacted recently LFG have that countries of number growing a of one is China that include LFG collection and flaring: China and India Improved waste management regulations 19. Moreinformation onLMOPcanbefoundat 18. EPA,(U.S. countries FSU non-EU the except regions all in emissions increasing with 2020, and Note, however, that in order to qualify for GHG credits, GHG for qualify however,to Note, order in that be able to prove that there is no legal or regulatory requirementtocontrolLFGemissions. be abletoprovethatthereisnolegalor regulatory Standard for Pollution Control on the Landfill Site of Municipal Solid Waste Solid Municipal of Site Landfill the on Control Pollution for Standard 18

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© OECD/IEA, 2009 2 7 28 Figure 9 Anaerobic digestion can be cost-competitive when compared to conventional waste management waste conventional to compared when cost-competitive be can digestion Anaerobic    constraints. any of which may be used at smaller farms in regions with technical, capital, and material resource requirements. The following are brief descriptions of conventional anaerobic digestion technologies, design system the on depending semi-solid, slurry,or liquid, of form the in is handled waste 2008b). The (M2M, digesters scale small and digesters, mix complete digesters, flow plug lagoons, anaerobic covered including digesters, anaerobic using recovered be can manure from Methane Methane mitigation technologies and practices Source Manure managementmethaneemissionsare risingglobally livestock commercial concentrated more management operationsinthesecountries(Figure 9). larger, towards trend the and populations livestock in 2006b). The expected growth rate for developing regions is large; this is due to the expected growth andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 20. For moreinformation abouttechnologyoptions,see manure liquid from released Methane source. income alternative an generating methane while manure emissions livestock abate to opportunities of range a offers technology current practices;

CH4 emissions (Mt CO2 equivalent) enhance anaerobicdecompositionandmaximisemethanerecovery. digesters mix Complete applicationsinallclimates. gas-to-energy producing stablegasflowsthatsupport digesters flow Plug is which methane, producing collected usingimpermeablelagooncovers. conditions anaerobic under treated is Manure temperatures. lagoons anaerobic Covered 300 100 150 200 250 : U.S.EPA, 2006b 50 0 20 1990

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© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery and the U.S. Department of Energy to encourage the use of methane recovery technologies on technologies recovery methane of use the encourage to Energy of Department U.S. the and Agriculture, of Department US EPA,the U.S. the by sponsored effort an is AgSTARProgram The Education and outreach: the United States therefore, thecreditwasUSD6.56perOBEofqualifiedfuels (USD 3.00x2.1853). 2.1853; was IAF the 2004, In (OBE). equivalent barrel-of-oil per (IAF) factor adjustment inflation 2004). Administration, Information (Energy biomass from gas and products, agricultural from steam seams, coal as such sources, nonconventional from fuel produce for credits tax provides the 1980, in Taxof Profit section established Windfall Code, (see Revenue Internal recovery the of methane 29 Section manure [S.3036]). Bill incentivise Farm The to 3702(a) guarantees loan uses Bill Farm US The Creation of financial incentives: the United States    reductions, emissions methane to manuremethanerecovery, includingmechanismssuchas: aid that projects approaches programmatic and comprehensive more developing in lead the take of can governments implementation widespread achieve To Country methane reduction efforts   recovery  methane other to similar are mitigation technologies andinclude: methane manure implementing to Barriers Barriers to methane mitigation ofafarm’senergyrequirements. meet aportion power;and heat combined or to chillers or boilers, engines, as such equipment gas-fired fuel in or management systems can be captured and used as a clean energy source to produce heat, electricity, 21. outreach conducts AgSTAR systems. recovery methane of implementation and evaluation farmers the assist in to designed tools and information provides programme This operations. livestock

These Section 29 credits were set to gradually phase out if the average annual price of US wellhead crude oil per barrel in calendaryear2005 exceededUSD52.38. beneficial. can make farmers more willing to adopt the technologies. Demonstration projects are also often Education and outreach andaddresshighcapitalcosts. methane recovery Creation of financial incentives for development of this resource. recovery for water quality or GHG mitigation, there are approach very comprehensivefew examples of a strategic frameworks of Lack awareness ofappropriatetechnologiesandpractices. low as well as management, manure from recovery methane for potential the about countries technologies suitable about awareness of Lack are insufficienttomakeprojectseconomic. Financial policies andmeasurestoaddresseachofthebarriersinasystematicmanner. potential the assessing involves This manure digesters. methane resource, identifying barriers to anaerobic realising this potential, and designing of targeted deployment the encourage to Comprehensive deployment strategies . Capital costs for manure methane projects can be high, and available energy tariffs energy available and high, be can projects methane manure for costs Capital .

The tax credit is equal to the product of USD 3.00 and the appropriate the and 3.00 USD of product the to equal is credit tax The . Raising awareness of the benefits, economics, and technology options . Countries can create financial incentives to encourage manure Wie oe ein ae netn i mnr methane manure in investing are regions some While . . Countries can develop comprehensive policy frameworks Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Tee s lc o udrtnig n most in understanding of lack a is There . . 21

© OECD/IEA, 2009 2 9 3 0 manure management(M2M,2008c). on building capacity continue and technologies mitigation methane on clarification further provide to looking is high- Mexico countries, two participating its and in M2M of help projects the With regions. swine demonstration density five operation into put has country the approach, strategic adapting the standards to Mexican temperatures and farm-specific loading rates. As a result of this protocols, sizing lagoon and systems digestion anaerobic own its technical designed has Mexico and recovery. scientific the apply to methane manure to Partnershipapproach comprehensive a design to countries other in developed Markets knowledge to Methane the utilised has Mexico wishing toinvestinmanuremethanerecovery. schemes and rural development programme to support address the financial barrier faced by farms grants bio-energy tariffs, feed-in to linkage community. development important Finally,an is there and research the and authorities, regional government, including stakeholders, important other for be to farms dairy responsibilities and roles outlines also Goals Shared The 2009). (DEFRA, on sources renewable from used energy of 40% for is target long-term The 2015. by sites processing 2020, towards industry at dairy digesters centralised 3 and UK 2010 by digestion the on-farm piloting farms 30 for for targets sets which vision a is there Roadmap, Milk the in example, For targets. these achieving for strategies and milestones, and targets develop to efforts “roadmap” in sector each in stakeholders the of recently engagement involved also process The most agriculture. water,and programme, management, waste including sectors, domestic key in digestion anaerobic active for potential the identify UK’s Goals the to part communicated in in its due Shared Goals digestion strategic is anaerobic document for of February approaches This 2009 promoting (DEFRA, internationally. in 2009). leader The Shared a been has (UK) Kingdom United The Comprehensive deployment strategies: the United Kingdom and Mexico farm digestersystemsproducedanestimated290000MWhequivalentsofenergygeneration. in the US has increased substantially since the establishment of the programme in 1994. In 2008, systems digestion anaerobic of implementation and Construction programmes. environmental and characterisations for systems, and collaborates with federal and state renewable energy, agricultural, events and conferences, provides project performance development listings, and performs industry andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 22. For moreinformation, visitthewebsiteat www.epa.gov/agsta r . 22

© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery methane projects, which is 34% of the over 200 JI projects in the pipeline (UNEP Risoe, 2009). Risoe, (UNEP pipeline the in projects JI 200 over the of 34% is which projects, methane JI 70 almost Currently,are emissions. there methane reduce to projects JI in interest an showing projects. CDM all by generated be to expected credits reduction emission of (Mt) tons CO metric million 69 nearly provided projects These 2009). Risoe, (UNEP pipeline CDM sector Energy Methane and recovery use has been one of the leading types of projects developed under the CDM. tonne ofCO one to Party,equivalent B each Annex another in project removal emission or emission-reduction an from (ERUs) units reduction emission earn to Party) B Protocol(Annex the targets under commitment reduction emission their of part a meet under the Protocol. Joint with Implementation an allows emission a reduction country or limitation to CO countries of industrialised by tonne used one and to traded equivalent certified each earn credits, to (CER) countries reduction developing emission in projects reduction/removal emission allows CDM The the CDMand path, development sustainable a negotiators of the on Protocol get included three market-based to flexibility mechanisms latter – Emissions Trading,the helping while efforts reduction emission to the in targets most cost-effective way,emission and to encourage the their private sector and developing GHG countries to contribute meet targets, countries setting help To value. By economic 1998). have (UN, reductions emission emissions GHG their reduce or limit countries signatory the of feature central The 1998). (UN, measures binding legally The 2009). (UNFCCC, countries industrialised for targets reduction emissions GHG binding time first the Kyotofor Protocol,setting the to agreed UNFCCC the 1997, In emissions. GHG by affected be can stability whose resource shared a is system climate the that recognises It change. climate by posed challenge the tackle to efforts intergovernmental for framework overall an sets that treaty international an is UNFCCC The Mechanism (CDM) andJointImplementation(JI)flexibilitymechanismsoftheUNFCCC. Development Clean the are this for mechanisms international primary The barriers. these address help to stream revenue additional an provide to marketed be can reductions GHG the economies, emerging in and countries developing in located projects For emissions. methane As the previous sections have discussed, financial barriers can significantly impede actions to reduce and theMethanetoMarketsPartnership. to reduce methane emissions. The most significant of Change these are the UNFCCC Climate flexibility mechanisms on Convention Framework Nations United (UNFCCC) Kyoto the Protocol, there by are also covered international structures designed gases to support national the efforts of one is address specific barriers to energy sector methane and recovery use. In addition, because methane The previous discussion focuses on domestic policy choices that countries can make to identify and climate changeandenergyarena Methane intheinternational 24. 23. Thisnumberexcludesthe136projects thathavebeenwithdrawn/rejected. 25. 2 hs nlss a bsd n n nlss f D poet ehdlge; n sm poet ue oe hn one than more use projects some and methodologies; project CDM of analysis an on based was analysis This This isagainexcluding the136projectsthathavebeenwithdrawn/rejected. the methodologiesused. on information more for appendix the See approximation. close very a but exact not is percentage the so methodology -equivalent per year in their first period, which is approximately 11% approximately is which period, first their in year per -equivalent 2 , whichcanbecountedtowardsmeetingitsKyoto target. m J I (UN,1998). ethane projects comprise almost 8% of the over 4 700 4 over the of 8% almost comprise projects ethane yt Protoco Kyoto l nee it fre n 05 wt a ubr of number a with 2005, in force into entered Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

Protocol 23 projects currently in the in currently projects 2 is its requirement that requirement its is Tee Es a be can CERs These . 24 25 of the total amount total the of Countries are also are Countries

© OECD/IEA, 2009 3 1 3 2 Figure 10  more detailbelow. in discussed are these arisen; have that issues unique have sectors four The above. seen is that complexities of some projects. This may have contributed to the reduction in the number of projects overestimate to of actual tendency emissions reductions; and slow progression a through the CDM pipeline due include to the technical These projects. emissions reductions during the methane project feasibility stage; challenges with to monitoring and verification relating challenges some common been have there that shows date to experience project However, frameworks. in CDM/JI projects the methane of failure or success the of assessments comprehensive There any factors. been not possible have of number a to due is This diminishing. be to appears prominence their (see FigureWhile energy sector methane projects have been a major CDM/JI project category Source but numbersare declining Methane recovery hasbeenapopularproject intheCDM, category policy change climate future inform discussions. to learned lessons identifies and energy projects, of methane types different sector the for mechanisms these in date to progress the at looks section This andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 26.

10% 20% 30% 40% 50% 60% 70% 80% 90%

0% Q1-04 See Figure 10 includes all methane projects, including those outside of the energy sector ( only onemethaneavoidanceprojectin thepipelineandcementprojectsarearound1% of total projects. includes cement along with methane projects. However, these additions have a small impact on project trends; there is leak reduction practices which may be considered common industry practice. can be measured, given the variability of oil and gas production, and establishing additionality of for their operations. Other methodological issues include setting a baseline against which beena projecta difficulty in attracting company interest in methane reduction projects that areengines a smalland part turbines ( pipelinetransmission, valves); production of steam heat or electricity; and production of work by Risoe, 2009). Methane reduction projects include fugitive losses from equipment leaks ( gas and Oil : UNEPRISOCentre http://cdmpipeline.org/cdm-projects-type.ht Q3-04

Q1-05 . There are 5 oil and gas methane reduction projects in the CDM pipeline (UNEPpipeline CDM the inprojectsreduction methane gas and oil 5 are There .

Q3-05 e.g. Q1-06 drive pumps/compressors). One challenge for the oil and gas sector has

Q3-06 26 Q1-07 m

for thisandotherdata. Q3-07

Q1-08

Q3-08

Q1-09 e.g. R F Ener cement CH4 uel enewables , enteric fermentation). It also gy switch r eduction efficiency and coal and mine/bed e.g.

10), gas

ol ie, adil wes n lvsok prto mngr hv bgn o els te value the realise to begun have managers operation livestock and owners landfill mines, coal resulting CERs). As the CDM and JI have become more widely established, oil and gas companies, (and rights gas methane over confusion is challenge such One projects. methane sector energy for Further, in addition to the sector-specific issues discussed above, there are other common challenges factors suchasclimate,managementpracticesandotherissues. information sharing among modellers to develop region-specific models that take into account local in gas generation estimates for planned CDM/JI projects. There may be some benefits to additional by site-specific factors and by subsequent operation practices, it is recommended to be conservative (and CER) generation during project preparation. As methane generation is nearly always impacted methane that modelling in difficulties projects had have types project methane Most address. to sector effort additional require energy the across issues methodological are there if as appears It    contractual forms to clarify andaddressownership. contractual forms toclarify standardised for need a be may There output. power or gas the purchasing are who utilities and be to needs Ownership project. CDM/JI proposed negotiated with all relevant a players, including the site owner, of nearby land owners, to project operators assessment need the ownership in CER early and established rights be methane/gas that is here point key A recovery. methane of

methane sector fares better than the other sectors in CDM project registration with 52 with registration project CDM in sectors other the than better fares sector methane registered to date (UNEP Risoe, 2009). management Manure in unmanaged,orpipingbecomesblockedwithcondensate(Lee also leachate applied, not is are material cover if under-perform issues may generation gas landfill Operational important; site. specific a from generation LFG observed actual the double (Lee conditions climate and In waste local for sites. adjust adequately to dump failed have proponents unmanaged project situation, this from CERs) associated (and generation gas expected predicted over-have emissions methane landfill Also,sanitary assess to suitable are that tools modelling verification and monitoring with problems (ISWA, and installation; equipment or implementation project the in delays issues; attributed operational and be technical including can reasons, under-delivery possible several This to period). same the for PDD in estimated Issued/CERs (CERs rate” success issuance “CER (UNEP low a stage had have agreement projects LFG the addition, at In 2009). stalled Risoe, are projects some projects; registered CDM 70 only with methane Landfill CER generation. expected to as uncertainty creates another,which to mine one from widely differ can content methane and project, a to prior flow gas of quantity and quality the forecast to difficult often is it addition, In underground. feet of thousands located are methane of level the measuring meters that given sectors, other than complex more are requirements monitoring project CMM registered. 10 only are there pipeline, the in projects 72 the of Out CDM. the through slowly to capture and use methane emitted from mines to generate power are progressing very efforts miningCoal can providethefinancing(CDCF, 2008)forthistypeofinitiative. (CDCF) Fund Carbon Development Community The purposes. development for communities poor to going investment of 10% with farms smaller many together bundles CDM which projects, agricultural for CDM “community-based” use to is issue this address to approach One interest. attracting difficulty had have projects smaller these result, a as projects; methane of and generation gas of over-prediction the quality. in In addition, manure management projects projects tend to be smaller-scale than the LFG other types as challenges same the of many

CMM projects, progress of implementation of LFG utilisation projects has been slow with slow been has projects utilisation LFG of implementation of progress projects, CMM

2008). . There are 72 CMM projects in the CDM pipelineCDM(UNEPRisoe,projectsthe2009). However,CMMin 72 Thereare . t al. et .

There are 146 LFG projects in the CDM pipeline (UNEP Risoe, 2009). As 2009). Risoe, (UNEP pipeline CDM the in projects LFG 146 are There Tee r 6 arclue rjcs n h CM ieie Te manure The pipeline. CDM the in projects agriculture 64 are There : 20) I sm css mdlig ol hv etmtd oe than more estimated have tools modelling cases, some In 2007). ,

However, manure management projects have experienced Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery et al. , 2007).

projects

© OECD/IEA, 2009 33 3 4 emissions reductionsaroundtheworld. projects. reductions the UNFCCC mechanisms emissions and successful facilitating at These supporting activities have been very methane for challenges and opportunities the identify that plans people critical to project success. In addition, M2M countries have developed sector specific action others to identify potential projects, and has provided capacity building and training for hundreds of and financiers developers, project governments, help that resources and tools of suite a developed pre-feasibility supported and feasibility studies that have helped projects enter the CDM/JI pipeline, has M2M success. project long-term for necessary building capacity and assistance technical the providing by mechanisms UNFCCC the to complement good a be to proven has Partnership The the potentialtoachieve180MMTCO has and world, the around projects reductions emissions methane 140 than more supported has the reduce to works and together,informational and institutional success barriers emission reductions project in these sectors. for To necessary date the actors Partnership the all bring to platform countries. Partner in sectors gas and oil and landfill, agriculture, 900 over and governments national 29 of partnership public-private a is (M2M) Partnership Markets to Methane the countries, developed several in successfully used models the on Building well. as overcome be to barriers institutional and information are there but world, the around countries in The CDM and JI mechanisms aim to address the financial barriers to methane emissions reductions anduseprojectsundertheCDM/JI. methane recovery encouraged to issue clarifying regulations or opinions that explain the are status Governments of place. existing in and are planned that requirements regulatory any above and over be must projects methane to as confusion created have projects’ countries qualification under the some CDM additionality in criteria, whereby in flaring) order to and qualify as additional, recovery CMM or flaring earlier.discussed issues estimation gas ( regulations Relatednew this, to the addressing toward way long a go would This confirmed. been have quality and flow gas after with project a benefits and flare-only to subsequently starting moving to important energy recovery sustainable more a is utilisation often are there projects, However,gas practice. recovery methane manure and landfill mine, coal with that given been has justification The flaring. and recovery methane involve that projects methane approve to reluctance country host with regions some in difficulty a is There environment. regulatory and attitude country’s host the to relates issue final A combustion emissionslevels(Lee referenced in all of the LFG CDM methodologies, requires enclosed flares to monitor pre- and post- additional monitoring requirements on methane projects. For example, a new flaring tool, which is impose to begun has reductions, emission anticipated are and baseline that project’s methodologies a calculate all to used approves and reviews which Board, Executive CDM the addition, In andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery 27. M2Mmembership asofJune2009.

private organisations working to advance the methane capture and use projects in the coal, the in projects use and capture methane the advance to working organisations private et al. 2 worth ofreductionsby2015. worth , 2007). 27 The M2M model provides a provides model M2M The e.g., for LFG capture and capture LFG for

© OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery Energy Sector Methane Recovery andUse:TheImportanceofPolicyEnergy SectorMethaneRecovery atclr infcne n eeoig onre, hr a ubr f ehn rcvr project practice anduse. policies formethanerecovery best recovery share to methane countries these engage of to important number be will it a Therefore, lie. opportunities where countries, developing in significance of is This sector.particular private the and countries among practices best policy of sharing and outreach widespread is step next the – beginning the just are report this in contained examples policy The quality, can offer. reducedexplosionhazards,localenergyresources)thatmethanerecovery water and air local (improved co-benefits many the such with along revenues, from GHG via benefit investment an will hosts country Developing methodologies. methane fine-tune to improve and to design effort project international concerted more a through however, addressed, be can challenges additionality.These establishing and projects, for baselines setting in over-estimation, under the UN flexibility mechanisms, there have been challenges that project have CDM/JI arisen of in categories gas largest generation four the of one are projects use and recovery methane While stakeholdersawealthofresources,andwhichshould beexpanded. and industry multilateral Methane to Markets Partnership is a strong network which offers interested government use. However, countries need to go the further; case studies as in The can a this serve start. report and recovery methane to tailored been have that incentives financial of number a also are There projects. generation electricity methane-based manure and streamline landfill mine, and coal for rights; interconnection ownership methane mine coal clarify utilisation; gas associated and increase flaring gas reduce to regulations of examples good are there example, For policies. targeted financial, technical, and regulatory barriers. On a limited basis, countries have had success enacting methane tools toaddress of a mix that utilise approaches have developedcomprehensive reduction projects with success most the to seen have frameworks that countries policy The use. comprehensive and strategic, recovery methane of guide lack the is sectors across finding common A methane acloserlook. giving from benefit will makers recovery,policy methane of benefits safety security,industrial and lifetime, combined with its economic value as a fuel and the local important environmental, energy atmospheric short methane’s to Due economies. developing in production energy and generation, countries, developed in stabilised global emissions are expected to grow, driven by the have expansion in livestock operations, solid waste emissions methane While attention. greater merits that sector energy the for strategy mitigation change climate strategic a is use and recovery Methane Conclusions Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

© OECD/IEA, 2009 35 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery CO Bcf: Bcm: Units SF CO CNG: CMM: CER: CDM: CDCF: CCL: CBM: Abbreviations/acronyms Abbreviations/acronyms andunits VAM: U.S. EPA: UNFCCC: UNECE: t: MW: MWe: Mt: kWh: kt: Gt: OBE: NDRC: MSW: M2M: LNG: LMOP: LFG: JI: IAF: GHG: FIT: EU: ERU: EEG: DI&M: DG:

2 2

-eq: :

Billion cubicfeet Billion cubicmeters Compressed naturalgas Coal minemethane emissionreductions Certified Clean DevelopmentMechanism Community DevelopmentCarbonFund Climate ChangeLevy Coalbed methane Ventilation airmethane United StatesEnvironmentalProtection Agency United NationsFramework ConventiononClimate Change United NationsEconomicCommissionforEurope Sulphur hexafluoride Tonnes Megawatt Megawatt ofelectricity Million metrictonnes Kilowatt-hour Kiloton Gigatonnes CO National DevelopmentandReform Commission Municipal solidwaste Methane toMarketsPartnership Liquefied naturalgas Landfill MethaneOutreachProgram Landfill gas Joint Implementation Appropriate inflationadjustmentfactor Greenhouse gas Feed-in tariff European Union Emission reductionunit Erneuerbare-Energien-Gesetz Directed inspectionandmaintenance Distributed generation Carbon dioxide Barrel-of-oil equivalent Barrel-of-oil 2 -equivalent Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

© OECD/IEA, 2009 37 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery AM16 (ver3) ACM10 (ver5) AM6 Manure management methodologies AM12 AM11 (ver3) AM10 AM3 (ver4) AM2 (ver3) ACM1 (ver9.1) Solid waste methodologies AM64 (ver2) ACM8 (ver5) Coal mine methane methodologies AM74 AM43 (ver2) AM23 (ver2) AM77 AM37 (ver2.1) AM9 (ver3.3) Oil and gas methodologies development mechanismmethodologies Appendix: Relevant UNFCCCclean Change ofanimalwastemanagement systems GHG emissionreductionsfrom manure managementsystems GHG emissionreductionfrommanure managementsystems Biodigester powerfrommunicipalwaste(onlyIndia) withelectricitygeneration(noCERsfromelectricity) Landfill gasrecovery Landfill gaselectricity(CERsfromelectricity) electricity) (ex-antecorrection) Simplified financialanalysisforlandfillgascaptureprojects(no CERsfrom baseline correction) Landfill gascaptureandflaringwithpublicconcessioncontract(ex-post Landfill gasprojectactivities hard rock,preciousandbasemetalmines Methodology forminemethanecaptureanddestructioninunderground, (electrical ormotive)andheat/ordestructionbyflaring Coal bedmethaneandcoalminecaptureuseforpower associated gas,previouslyflaredand/orvented Methodology fornewgridconnectedpowerplantsutilizingpermeateor iron pipeswithpolyethylene Leak reductionfromanaturalgasdistributiongridbyreplacingoldcast Leak reductionfromnaturalgaspipelinecompressororgatestations tospecificend-users(asCNG) and itsdelivery beventedorflared of gasfromoilwellsthatwouldotherwise Recovery Flare reductionandgasutilisationatoilprocessingfacilities flared orvented be and utilisationofgasfromoilwellsthatwouldotherwise Recovery Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery

© OECD/IEA, 2009 39 © OECD/IEA, 2009 Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery http://www.methanetomarkets.org/resources/factsheets/agriculture_eng.pd M2M (2008b),“ManagingAnimalWaste toRecover Methane”, Opportunities”, Use and Recovery Methane System Gas Natural and “Oil (2008a), (M2M) Markets to Methane Mendbayar, B.(2009),Government ofMongolia,personalcommunication. Management andLandfillSymposium,CagliariItaly(1-5October 2007). ProceedingsCountries,” Developing for EleventhInternational WasteSardinia 2007, Opportunities FutureTrends and Current Projects: CDM Gas “Landfill Toefy(2007), A. and Bogner J. C., Lee, Joint ISWA Work GroupMeeting(2008),CDMWorkshop Introduction: “CDM101”. Johnson, M.(2009),CarletonUniversity(Ottawa,Canada),personalcommunication. http://www.iswa.org/DocumentDownloadServlet?id=1960&language=e at Paper, accessible Position Gas Landfill (2008), (ISWA) Association Waste Solid International MARKAL ModelfortheUS”, the using Options Mitigation Methane of “Analysis (2004), (IRG) Group Resources International www.iea.org/textbase/papers/2009/china_cmm_report.pd Bloom”, Potentialto the with Asset Budding A China: in Methane Mine “Coal (2009), IEA tomorrow”, today…and for technologies energy Sustainable – Energy District and 2008”, “Cogeneration (2008d), IEA India in Recovery Methane Landfill Asset: an http://www.iea.org/textbase/papers/2008/India_methane.pd into Liability a “Turning (2008c), IEA Use Worldwide”, Policyof Gas Fostering Landfill in Importance “TurningThe (2008b), Asset: IEA an into Liability a IEA (2008a), http://www.hm-treasury.gov.uk/fin_bill02_clause123.ht HM Treasury (2002),Finance Bill,Clause123:Climatechangelevy, Conference EnergyBillof2003 (2004), (EIA) Administration Information Energy Goals Departmentfor Environment Food and Rural Affairs (DEFRA) (2009), http://wbcarbonfinance.org/docs/2008_Annual_Report_CF08_Final_printed_Low_Res_04-29-09.pd Community Development Carbon Fund (CDCF) (2008), ‘’Carbon Finance for SustainableUpstream Petroleum Industry Development”, (2009), (CAPP) PetroleumProducers of Association Canadian References committee_012109.pd http://www.methanetomarkets.org/events/2009/all/docs/all-27jan09/steering/lf_to_steering_ toSteeringCommittee”, (M2M) (2009a),“LandfillSubcommittee Report http://www.methanetomarkets.org/resources/ag/docs/mexico_profile.pd M2M (2008c),“MexicoProfile: AnimalWaste ManagementMethane Emissions”, , available at http://www.iea.org/files/CHPbrochure09.pd Energy Technology Perspectives, http://www.methanetomarkets.org/resources/factsheets/oil-gas_eng.pd http://www.iea.org/textbase/papers/2009/landfill.pd http://www.defra.gov.uk/environment/waste/ad/pdf/ad-sharedgoals-090217.pd f . http://www.epa.gov/methane/pdfs/macc_analysis.pd , accessibleat , http://www.eia.doe.gov/oiaf/servicerpt/ceb/fuel.htm http://www.capp.ca/GetDoc.aspx?DocID=146286 IEA/OECD, Paris. Analysis of Five Selected Tax Provisions of the of ProvisionsTax Selected Five of Analysis Energy Sector Methane Recovery andUse:TheImportanceofPolicy EnergySectorMethaneRecovery f m . . f . f . Statistical Handbook for Canada’s for Handbook Statistical

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http://www.cdmpipeline.org/index.ht http://www.climatescience.gov/infosheets/highlight1/default.ht

f . . Climate Change 2007: Mitigation of Climate Change Climate of Mitigation 2007: Change Climate

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© OECD/IEA, 2009 hs eot a peae b te nry ehooy oiy iiin Ti ppr elcs h ves f h IEA the on thisdocument, pleasecontactTom Kerr of at: views the reflects information further For countries. paperMember IEA individual the of This views the reflect not may Division. or may and PolicySecretariat Technology Energy the by prepared was report This Printed inFrance bytheIEA 75739 Paris Cedex15 9, ruedelaFédération [email protected] Cover design: IEA IEA Publications August 2009