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Project Summary

Project Number: RUS/03/G31/A/1G/99
Project Title: Russia - Removing Barriers to Coal Mine Methane Recovery and Utilization
Project short title: Coal mine methane (CMM) project
Focal Area: Climate Change
Estimated start date: October 2003
Duration: 48 months
Project site: Kemerovo oblast, Russian Federation
Beneficiary countries: Russian Federation
Executing Agency: Ministry of Energy of the Russian Federation
Primary areas of focus /sub focus: Promoting environment and natural resources sustainability. Promotion of sustainable energy and atmospheric quality.

Primary type of intervention

The project will mitigate greenhouse gas emissions by removing barriers to the implementation and financing of coal mine methane (CMM) recovery and utilisation projects in Russia. In order to reach this goal, the project will strengthen the institutional and financial framework for the promotion of CMM projects and facilitate the implementation of selected demonstration projects so as to provide a basis for the wide scale replication of similar projects in the future. The initial focus of the project will be on the Kuzbass region, with further replication potential in other coal producing areas in Russia and elsewhere.

Replicability

The potential for methane recovery and utilization is the Russian coal mining sector is remarkable. Given the very favorable economics of the suggested concept for more effective methane recovery and utilization, it is expected that after removing the initial barriers to these kinds of projects, they will have a growing business area in front. This, however, will also require a continuing and serious commitment of the Government to introduce changes in the legal and regulatory framework that support the mentioned activities.

Project outcomes

By reducing the amount of methane emissions into mine workings via degasification, projects will enable mines to increase the efficiency of coal production by reducing delays attributed to high methane concentrations. The use or sale of methane will also increase revenues, balancing a major portion of degasification expenses. Methane use for electricity generation affirms an energy autonomy status and a company's stability. Methane utilization in mine's boiler houses while involving minor expenses is capable to freeing out for sale hundreds of thousands tons of coal yearly, and for mines producing coking coal rejects the necessity of buying coal. Alternatively, projects that involve selling coal mine methane directly to power plants or industries will generate additional income for the mines.

The utilization of the methane is expected to be mainly for the own use of the mines only, i.e. replacing the currently used coal for heat production and reducing the need for the electricity to be purchased from outside, which in the coal producing regions is mainly generated in coal fired condensing power plants. As such, the project is expected to reduce the GHG emissions in two ways: By reducing the direct venting of the methane into the atmosphere and by reducing the amount of GHG emissions from the energy production associated with the mines' energy needs.

Beside the technical aspects, the projects should demonstrate new, innovative project implementation and financing modalities, which will not just be considered by the mine management as an extra burden to their "baseline" activities. As a mechanism for this, the establishment of a specialized Coal Mine Methane Recovery and Utilization Company is foreseen.