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The Methane to Markets Partnership: Opportunities in Russia
International conference
Coal Mine Methane: Recovery, Utilization,
Investment Opportunities
June 19-20, 2006
Kemerovo, Russia
The Methane to Markets Partnership: Opportunities in Russia
Barbora Jemelkova
Coalbed Methane Outreach Program
US Environmental Protection Agency
Methane to Markets Partnership Overview
- 17 member international partnership launched in 2004
- Project Network (PN) is critical to success
- Over 250 PN Members
- Focus: overcome barriers to commercial project development to utilize
methane
- Many motivations including reducing greenhouse gas (GHG) emissions
- Methane has 23 times global warming potential of carbon dioxide
Let me start by introducing the program, although
many of you have heard of it already.
The Partnership now has 17 member partner countries. It was launched in
2004.
It is a partnership that is a public-private endeavor, and PN members
are integral to its success.
The partnership is motivated by many factors, including increased safety,
increased energy supply and security, increased economic growth, and decreased
GHG emissions since methane is a potent GHG. The program has the potential
to reduce emission by 50 MMTCE, or 500 BCF.
M2M Overview Partner Countries
Ecuador recently joined – now there are 17 members!
Germany also has submitted an application to join and will be included
if no country opposed within the next few weeks.
M2M Overview
Target Sectors
The Partnership now targets four sectors / sources of methane. Each sector
is represented by a subcommittee. All four subcommittees are managed by
a steering committee.
- Coal mines
- Oil and gas systems
- Landfills
- Agriculture (manure management)
Coal Subcommittee
- The subcommittee leadership:
- Co-chairs: India and USA
- Vice-chair: China
- Four successful meetings since M2M launch:
- Most recent in May 2006, Tuscaloosa, Alabama, USA
- Developed a specific action plan to move forward, including:
- Identify key barriers to project development
- Identify country specific needs and opportunities
- Increase development of CMM recovery and use projects
Because the four methane programs at EPA have been
so successful since their inception, they served as models for the design
of four sectors of the M2M partnership. CMOP served as the model for the
coal sector, which is represented by the Coal Subcommittee. The US is
a co-chair of the subcommittee along with India. The EPA is the agency
that leads US efforts on M2M, so my colleague, Pamela Franklin, is the
co-chair. China is a vice-chair. Russia is in the partnership. The official
coal subcommittee delegates from Russia are: Lev Aleksandrovich Puchkov
from Moscow Mining University, and Aleksandr Miroslavovich Karasevich,
Director General of "Promgas“.
The Subcommittee has been productive over
the last two years during four meetings. It has developed an action plan
to move forward.
Key Barriers to CMM Projects
- Lack of clarity about legal and regulatory issues
Especially ownership of the gas
- Lack of technology and technical knowledge
Resource assessment, technology selection, formulating feasibility studies
- Lack of pilot projects to demonstrate site-specific economic recovery
& utilization
- Lack of financing or capacity to obtain financing
The Coal Subcommittee is focused on overcoming barriers
and has identified four key barriers to CMM project development. These
may be familiar to you.
M2M “Partnership Expo”
- Cliff event to bring project opportunities and sites, project developers,
and investors together
- Will include all four sectors
- Similar to “Carbon Expo” in design + technical sessions + high
level government participation
- Planned for the Fall of 2007 in Beijing, China
- Opportunity to develop and showcase CMM projects in Russia
to potential investors
To provide the subcommittees with a cliff event to
work towards, the M2M Steering committee endorsed a plan to move forward
with a multi-sector Project Expo or “Partnership Expo.” Now, the coal
subcommittee is focused on addressing country-specific barriers and identifying
country-specific opportunities. The goal is to work with subcommittee
delegates to identify and develop project opportunities to the point that
they can be showcased at the Expo. Right now, subcommittee delegates are
working on some minimum criteria to identify good opportunities.
The subcommittee leadership hopes that Russia is able to participate in
the Expo.
This event would provide an opportunity to bring project opportunities
together with project developers and investors, as well as technology
vendors
Opportunities in Russia
- Russia ranks 4th globally in emissions
- 2 billion cubic meters emitted in 2000
- Equivalent to 30 MMTCO2e (8 MMTCE)
- Mostly from Kuznetsk and Pechora Basins
- Several project ongoing and in development already
- Many untapped opportunities remain!
- 15 mines in Kuzbass that together drain 116 million cubic meters
per year (Uglemetan)
- Strong market for energy in Kuzbass region
- Over 200 CMM projects operating in 15 countries can provide examples,
ideas, lessons learned
As you all know, Russia is home to numerous project
opportunities.
Methane to Markets Grant: Forthcoming
- Each grant will be between $25,000 and $200,000
- Period of Performance will be 1 to 3 years
- Up to 20 grants will be awarded across all 4 sectors
- Up to $2.5 million in funding will be available
- Only government or non-profit organizations can apply
- Project idea at a mine
- Technical analysis
- Market analysis
- Regulatory/legal analysis
- Can include travel to Expo
- Guidelines will be included
USTDA Grant
USTDA Grants for technical assistance or feasibility study
- Can be submitted by U.S. company (sole-source) or by foreign grantee
(competitive bidding)
- Example: $585,000 grant awarded to Ukraine in 2005 for CBM/CMM Project
(with U.S. company)
- Contact Jennifer Synder (jsnyder (at) ustda. gov) for more information
www.epa.gov/coalbed
www.methanetomarkets.org
Barbora Jemelkova
+1 202.343.9899
Pamela Franklin
+1 202.343.9476
International conference
Coal Mine Methane: Recovery, Utilization,
Investment Opportunities
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