Bulga Underground Operations Greenhouse Gas Management Plan

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1 for Bulga Underground Operations Greenhouse Gas Management Document

2 Management Table of Contents 1 Overview Scope Greenhouse Gas Emissions Overview Purpose GHG Management Strategies and Initiatives Training and Awareness Reporting Review and Improvement Accountabilities Document Information Related Documents Reference Information Change Information Appendices Appendix 1 - Site Specific GHG Emissions Appendix 2 - Letter of Approval Page 2 of 12

3 Management 1 Overview The Bulga Coal Complex (BCC) comprises two coal mining operations, the Bulga Surface Operations (BSO), which incorporates the Bulga Coal Complex Coal Handling and Preparation t (CHPP), and Bulga Underground Operations (BUO) which comprises the Blakefield South (BFS) and Blakefield North (BFN) mines. BCC operates under two NSW development consents (Bulga Surface Operations SSD- 4960) and Bulga Underground Operations DA ) and under a single Environmental Protection Licence (EPL) 563. Bulga Coal Management P/L (BCM) operates the BCC on behalf of the Bulga Joint Venture which is majority owned and managed by Glencore Coal Assets Australia (GCCA). Figure 1-1: location, and proposed Blakefield North Mine, in relation to the Bulga Coal Complex mining lease Page 3 of 12

4 Management The mine layout of the BUO, shown in Figure 1, incorporates eight longwall panels; BSLW1 BSLW9 (note that there is no BSLW6) and seven proposed Blakefield North Mine longwall panels (BNLW1 BNLW7), in the Blakefield seam. Each BFS and BFN longwall panel occurs beneath the Whybrow seam, which has been previously mined. The mines are considered gassy due to the large quantities of methane (CH 4 ) contained within the coal seam. The gassy conditions are due to: Significant undrained coal seams in close proximity to the roof and floor of the working section; and Interconnecting goafs (known significant seam gas emissions occur in overlying but shallower Lower Whybrow seam workings). BUO is targeting production rates in the order of 7 Mtpa with average specific gas emissions (SGEs) between m3/t. 2 Scope This plan addresses the requirement for BUO to have a Greenhouse Gas Management (GHGMP). As per DA , Condition 4.24A, namely; The Applicant shall prepare and implement a detailed Air Quality & Greenhouse Gas Management for the development to the satisfaction of the Director-General. This plan must: a) be prepared in consultation with the EPA and submitted to the Director-General for approval by the end of March 2014; b) describe the measures that would be implemented to ensure compliance with the relevant conditions of this approval, including consideration of applying a real-time air quality management system that employs both reactive and proactive mitigation measures; c) describe the measures that would be implemented to minimise the release of greenhouse gas emissions from the site; and d) include an air quality monitoring program that uses a combination of high volume samplers and dust deposition gauges to evaluate the performance of the project, and includes a protocol for determining exceedances with the relevant conditions of this approval. The objective of the GHGMP is to address section a) and c) above. The Bulga Coal Complex currently has an approved Dust Management to further address sections a), b) and d) above, and after consultation with the NSW Department of ning, it was agreed that there are benefits in the BUO having two plans. The Dust Management is a more operational plan that is likely to be amended more frequently than the Greenhouse Gas Management, which is primarily a strategic plan. Therefore, this plan; Incorporates information relating to energy and GHG management at BUO into a single document; and Outlines key mitigation measures undertaken by BUO with respect to GHG emissions and energy consumption. Page 4 of 12

5 Management 3 Implementation 3.1 Greenhouse Gas Emissions Overview The greenhouse gas (GHG) protocol provides the accounting framework for nearly every GHG standard and program in the world and its principles were adopted in the NGER Act The NGER Act specifies that GHG emissions are described in terms of scope 1, scope 2 and scope 3 emissions. A summary of the GHG emissions sources at BUO is presented in Table 3-1. Further information relating to site specific GHG emissions is contained in Appendix 1. Scope Emission Source Fugitives from vent shafts i.e. Ventilation Air Methane Pre drainage gas flaring and venting Post (goaf) drainage gas flaring and venting Scope 1 (Direct) Fugitives emissions from post mining activities Usage of oils, lubricants and greases (immaterial as not combusted) Diesel combusted for stationary purposes i.e. coal extraction underground gassy mine Diesel combusted for transport purposes i.e. surface activities Leakage of SF 6 Scope 2 (Indirect) Electricity consumption (purchased from the grid) Scope 3 (Indirect) Product coal combustion Table 3-1 Emission Sources at Bulga Underground Operations 3.2 Purpose Abatement of GHG emissions reduces emissions liability under the Clean Energy Future (CEF), a national policy. BUO is also committed to combusting 85% of captured pre and post drainage mine gas (Bulga Coal Continued Underground Operations Environmental Impact Statement, Umwelt 2003). The GHGMP, a requirement under Development Consent (DA ) (Mod 5 (2013)), provides a single document that contains relevant information on energy and GHG management for BUO. The GHGMP will assist site management and BCM in fulfilling the requirements of the Development Consent, the 2003 EIS and also Glencore policies, standards and initiatives, international, national and other legislative requirements. Page 5 of 12

6 Management Figure 2 provides a graphical representation of the legislative and other requirements of BUO: Blakefield South Sustainable Development Sustainable Development Strategy & Annual ( ) Sustainable Development Policy and Management Framework Sustainable Development Policy and Standards 1, 2, 10 & 14 Energy Savings Action s (ESAP) Not Compulsory BUO GCCA Glencore Coal Assets Glencore NSW Bulga Coal EMS, Bulga Underground GHGMP Guideline: Energy and Greenhouse Framework GCCA SD GDL 0018 Sustainable Development Targets Sustainability and Database (XSD) and Definaitions Development Consent (DA ) Clean Energy Future Package (CEF) AUSTRALIA Energy Efficiency Opportunities (EEO) Kyoto Protocol INTERNATIONAL Figure 3-1: Legislative and Other Requirements The Greenhouse Gas Protocol Accounting and Reporting Standard 3.3 GHG Management Strategies and Initiatives BUO have implemented three key management strategies and initiatives to reduce GHG emissions on site: Flaring Facilities for pre and goaf drainage gas; Power Station (9MW); and VAM RAB (destruction of ventilation CH 4 ) The function of the pre-drainage system is to reduce in-situ gas levels to permit safe development of underground roadways. The function of the post- (goaf) drainage system is to allow high longwall extraction rates while maintaining compliance with gas content regulations in the longwall return roadway. To achieve this BUO have developed a unique solution with a network of vertical wells (boreholes) intersected by horizontal boreholes. Traditionally only vertical extraction boreholes were used at other collieries but in BUO s case the modelled susceptibility to failure created the need for a combination of vertical and horizontal boreholes. By incorporating horizontal boreholes BUO have achieved greater certainty in maintaining targeted production and are able to beneficially deal with CH 4 in the form of captured drainage gas rather than in the released mine ventilation stream. The flares and power plant reduce scope 1 emissions significantly via combustion of CH 4 which is converted into CO 2. Additionally, the generation of onsite power through the combustion of CH 4 in the power station will reduce scope 2 emissions through the decreased need for outside purchase of electricity. Both the flares and power station are shown in the photographs below. VAM abatement unit - Ventilation Air Methane Regenerative After Burner (VAM RAB), was implemented as a pilot plant (10m 3 /s) using drainage gas during Due to varying success of these trials, further consideration may be given to the implementation of a larger unit to treat VAM emissions from the ventilation stream. The function of a VAM RAB is to oxidise the uncaptured methane in the mine ventilation stream. Page 6 of 12

7 Management Photo 3-1 Goaf flaring facility at Bulga Underground Operations Photo 3-2 Pre-drainage flares and 9MW gas fired PowerStation at Bulga Underground Operations 3.4 Training and Awareness Primarily, the communication of GHG management will occur during site inductions. This initial introduction will be followed up with update sessions as determined by the Environmental and Community Manager (ECM). Page 7 of 12

8 Management 4 Reporting Estimates of GHG emissions, energy production and consumption is prepared in accordance with the principles set out in Section 1.13 of the NGER (Measurement) Determination Air Quality System (AQS) reporting is undertaken monthly by the site Environment and Community Officer (ECO), with data entered into the AQS platform. The data is then reviewed and verified by the site Environment and Community Manager (ECM) for review and verification. Once verified, data is sent to Glencore Management for a final Quality Assurance and Quality Control (QAQC) check. At the conclusion of the reporting year (financial year), the ECO is responsible for finalising AQS data, and sending it to the site ECM and Glencore Management. Data verification is undertaken prior to submitting completed report via Energy Emissions Reporting System (EERS). Data collation is outlined in BSM SD PLN 0099 Bulga Underground Operations AQS Data Collection Procedure. 5 Review and Improvement It is expected that the GHGMP will be reviewed every 3 years or as required in conjunction with the GCCA Environment and Climate Change department. 6 Accountabilities Role Accountabilities for this document Operations Manager Gas Drainage Manager Provide adequate resources and systems to meet the requirements specified under this plan, minimising greenhouse gas emissions. Manage and maintain the mine gas drainage system. Environment and Community Manager Technical Services Manager Provide awareness training of the GHGMP to staff. Review and update this GHGMP as necessary. Assist with modelling and reporting of GHG emissions. Ventilation Officer Manage and maintain the mine ventilation system. Page 8 of 12

9 Management 7 Document Information 7.1 Related Documents Related documents, listed in Table 7-1 below, are internal documents directly related to or referenced from this document. Title DCCEE (2012a). National Greenhouse and Energy Reporting System Measurement. Technical guidelines for the estimation of greenhouse gas emissions by facilities in Australia July DCCEE (2012b). National Greenhouse Accounts Factors July Umwelt Environmental Consultants (2009). Blakefield South Power Generation & VAM Abatement. Greenhouse gas and energy impact and abatement assessment. IPCC (1996). Second Assessment Report: Climate Change Working Group I The science of climate change. Great Britain. Cambridge University Press. IPCC (2007). Fourth Assessment Report: Climate Change PAE Holmes (2010). Air quality assessment Beltana power generation project GCCA (2011). GCCA Sustainable Development Strategy and Annual ( ). GCCA SD PLN Glencore Coal (2008). Climate Change Position Statement. Glencore Coal (2010). Glencore Coal Bulga Gas Utilisation Project Concept Paper. Glencore Coal (2011). Bulga Coal Complex Environmental Management Strategy. BUO SD PLN Table 7-1 Related documents 7.2 Reference Information Reference information, listed in Table 7-2 below, is information that is directly related to the development of this document or referenced from within this document. National Greenhouse and Energy Reporting Act Reference GCCA (2009). Guideline for GCCA Energy and Greenhouse Framework. GCCA SD GDL Carbon Management CAA HSEC PCL 0001 Umwelt Environmental Consultants (2003). Bulga coal continued underground operations: Environmental impact statement (EIS). National Greenhouse and Energy Reporting (Measurement) Determination BSM SD PLN 0099 Bulga Underground Operations NGERs Data Collection Procedure BSM SD PLN Air Quality Management Table 7-2 Reference information Page 9 of 12

10 Management 7.3 Change Information Full details of the document history are recorded in the document control register, by version. A summary of the current change is provided in Table 7-3 below. Example detail shown below. Version Date Review team (consultation) Change Summary September 2015 Align with GCAA standards /7/2016 Teegan Hayward Addition of Approval Letter to Appendix 2 Table 7-3 Change information Page 10 of 12

11 Management 8 Appendices 8.2 Appendix 1 - Site Specific GHG Emissions A.1.1 A.1.2 A.1.3 Overview of Energy Usage Energy usage at BUO consists mainly of purchased electricity and diesel combustion for transport and stationary energy purposes. Electricity is purchased from the NSW state grid with an electricity factor of 0.88 t CO 2 -e/mwh. Diesel consumption reflects the use of equipment underground for coal extraction (stationary) and surface activities (transport). BUO has a 9MW gas fired PowerStation which is used to offset energy usage through the production of electricity from extracted coal seam gas. This electricity is then utilised on-site to power BUO facilities. Gas Make Primarily, gas make is dependent on predicted SGE and production (ROM tonnes). Therefore there can be large variability between predicted and actual. GHG Emissions Abatement Abatement of GHG emissions reduces emissions liability under the CEF. Currently BUO operates two flaring facilities to abate a significant proportion of scope 1 emissions from pre drainage and goaf drainage gas. BUO under DA (MOD 4), have installed three gas engines with a 9 MW power generation capacity. The gas engines abate scope 1 emissions as well as avoid scope 2 emissions as the electricity generated is utilised on site. The 2013 (Mod 5) to the development consent increased the capacity of power generation up to 41MW, but further investment above the current 9MW plant will be contingent upon market forces. 8.3 Appendix 2 - Letter of Approval Page 11 of 12

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