Coal Mine Methane Project in China (Japanese Government Assistance)

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Coal Mine Methane Project in China (Japanese Government Assistance) March 2010 Hiroaki Hirasawa General Manager Resources Department Japan Coal Energy Center (JCOAL) 1

Contents of Presentation 1. Introduction of JCOAL 2. NEDO CMM Town Gas Model Project at Tiefa, China 3. NEDO CMM/VAM Power Generation Model Project at Fushun, China 4. NEDO CMM Concentration Technology Development Project at Fuxin, China 5. NEDO VAM Turbine Project in China NEDO :New Energy and Industrial Technology Development Organization ion 2

1. Introduction of JCOAL 3

Profile of JCOAL (1) Name: Japan Coal Energy Center (JCOAL) (2) Office: 9F, Meiji Yasuda-Seimei Mita Bldg., 3-14-1010 Mita, Minato-ku, Tokyo 108-0073 0073 JAPAN (3) Established: October 16, 1990 (Merged with CCUJ as of April 1, 2005) (4) Members: 106 Associations (5) Basic assets: 651 million yen (6) E-mail E : jcoal-info@jcoal.or.jp (7) URL: http://www.jcoal.or.jp 4

History of JCOAL 5

Project Scheme with China JAPAN China New Energy and Industrial Technology National Development & Development Organization (NEDO)---------- Reform Commission MOU (NDRC) JCOAL & ------------------------------------ Coal Mine Private Sector Implementation Agreement 6

Project Task Share with China JAPAN China Site Selection Provide Data and Information Feasibility Study Application for Government Detailed Design Auxiliary Equipment Major Equipment and Technology Inland Transportation Demonstration Operation Civil Works/Building Training/Technology Transfer Construction Work 7

2. NEDO CMM Town Gas Model Project at Tiefa, China 8

Project Site (Liaoning Province) CMM Town Gas Use Model Project (1998-2002) Methane Enrichment System (2007-2008) CMM/VAM Power Generation Model Project (2007-2010) Shenyang 9

CMM Town Gas Use Model Project at Tiefa 10

3. NEDO CMM/VAM Power Generation Model Project at Fushun, China 11

Liaoning Fushun Mining / Laohutai Liaoning Project Overview Number of Unit 1 Unit Fushun City Type 12MACH-30G (4 cycle, V-type, micro pilot) Power Generation Efficiency 45% Output 3,500kW (at generator terminal) Fuel gas CMM(30%<) and VAM 12

GHG reduction by CMM gas engine The case of NEDO model plant CMM gas consumption : 2,925Nm 3 /h Methane concentration : 30% (4~5% in engine cylinder) Amount of methane extraction : 878Nm 3 /h (Operation 8,000hr./year) Green house effect coefficient of extracted methane is 21 times of CO 2. Amount of green house gas reduction by one CMM MACH gas engine is 91,000ton/year. (CO 2 conversion) 13

General arrangement (KEY PLAN) 西风扇 沥青路 乏风入口 空压机及乏风鼓风机房 中控室 储油罐 瓦斯压缩机 冷却塔 & 冷却槽 休息室 排水泵房 & 排水槽 水泵房 & 水处理 内燃发电机房 14

General arrangement (Cross section, First floor) Scope: Blue marks are supplied by MHI 15

CMM GAS SUPPLY TO MACH 30G SUB-OVERNING GAS SUPPLY VALVE T/C * CMM MIXER VAM or INTAKE AIR MAIN GOVERNING GEN. MACH-30G A/C * CMM AIR MIXTURE INTAKE AIR SYSTEM GAS COMP. FILTER CMM SAFETY CONTROL Engine (comb.chamber) CMM AIR MIXTURE GAS HOLDER CMM HIGH OUTPUT SUPER LEAN BURN 16

Schedule for NEDO model plant Fiscal year 2008 Fiscal year 2009 2010 Milestone 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 FOB Completion of installation Completion of demonstration Unloading Completion of commissioning test Design and engineering for equipment Counterpart supplied MHI supplied Civil Engineering Construction Installation work of equipment Counterpart supplied MHI supplied Commissioning test at site Demonstration 17

Installation of Gas Engine 18

Gas Engine and Auxiliary Equipment 19

Engine of Mitsubishi Heavy Industries 20

4. NEDO CMM Concentration Technology Development Project at Fuxin, China 21

Introduction : System concept This system enables to concentrate CMM emitted to the atmosphere without any effective utilization. Oxygen, Nitrogen Adsorption tower using methaneselective adsorbent Product gas Methane concentration: 40% or more Vacuum pump Product tank Electricity supply Gas engine-driven generator Heat supply Gas boiler CMM Methane concentration: 30% or less Emission to the atmosphere Prevention of blowout into excavating front through preliminary extraction CMM with a methane concentration below 30% is emitted to the atmosphere without any effective usage. Methane gas Coal Excavating front 22

Auxiliary air for combustion Introduction : Effective utilization Expansion of use applications of CMM Electricity Lowconcentration gas power generation Electricity Mediumconcentration gas power generation Town gas Industrial utility gas LNG liquefier LNG CNG Mediumconcentration CMM Industrial raw material gas Ultra-low- Concentration VAM Low- Concentration CMM CMM Concentration System CMM Concentration System High- Concentration CMM Explosive limit zone 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5% 15% The Concentration of Methane in CMM 23

Demonstration Test : Specifications Specifications of CMM Concentration Plant for Demonstration Test Inlet CMM CH 4 : 20% 1,000 m 3 /hr Product gas CH 4 : 45% 400 m 3 /hr Recovery factor 90% or higher 24

Demonstration Test : Plant appearance Mixing tank Adsorption tower Vacuum pump 25 25

Demonstration Test : Results It was confirmed that CMM of 21% methane gas was successfully concentrated to 48%. 26

Methane concentration in product gas (%) 60 55 50 45 40 3. Demonstration Test :Results The target performance of our system was achieved (25% concentration, 90% recovery). Raw material gas flow rate: 1,000 Nm 3 /h 15 20 25 30 35 Methane concentration in raw material gas (%) Fig.1 Dependence of the methane concentration in raw material gas against methane concentration in product gas Methane メタン回収率 recovery rate (%) (%) 100 95 90 85 80 Raw gas flow rate:1,000 Nm 3 /h 15 20 25 30 35 Methane concentration 原料ガスメタン濃度 in raw material (%) gas (%) Fig.2 Dependence of the methane concentration in raw material gas against methane recovery rate 27

Commercial Plant : Specifications Standard Specifications of Methane Concentrating plant Inlet CMM CH 4 : 20% 2,000 m 3 /hr Product gas CH 4 : 45% 800 m 3 /hr Recovery factor 90% or higher 28

Commercial Plant :Basic System Basic System (Methane concentration in raw material gas: 20% or higher) CMM Concentration Plant CMM CH 4 :20% or higher 45% or higher Gas tank 45% or higher Gas supply CMM Concentration Plant CMM CH 4 :20% or higher 45% or higher Gas tank 45% 30% or higher Gas supply 20% or higher 29

Effects of Introduction For example, if the commercial plant of CMM concentration (flow rate : 2,000Nm3/h) is installed; Energy conservation: 2,600 kl/yr reduction (crude oil equivalent) Greenhouse gases: 38,000 t/yr reduction (CO 2 equivalent) 30

Business Plan Apr. 2009 2010 2011 2012 2012 1. Pilot Plant Operation 2. Basic Design Package (commercial plant) Engineering Modification & Partner Search Business Modeling F/S demonstration complete Modify Localize 3. NEDO F/S in China Demonstration Project?? 4. Project Finding 31

5. NEDO VAM Turbine Project in China 32

VAM Turbine Only one practical se in the World Catalytic Combustion 触媒燃焼器 Heat Exchanger 熱交換器 Long Time Operation Record 1,500kW Gas Turbine:M1A-13X 600kW Gas Turbine:S7A Many Installation Catalytic Combustion 触媒燃焼ガスタービンGas Turbine 1,000kW Gas Turbine:M1A-01 33

Catalytic Combustion Features: No NOx, No flame, Low concentration methane be used (- 5%) Flame Combustion(Ordinary Combustion) Fuel + O 2 Combustion. Minimum methane concentration is +5%. Catalytic Combustion (Oxidization by catalyst) Fuel oxidization at low temperature : Oxidization of O 2 + CH 4 at the surface of catalyst 34

What can we do with VAM/CMM? Electricity Generate by utilization of VAM/CMM as fuel Gas Turbine Gene-set Special Combustion CH 4 Ventilation Fan VA M Bleed Pump Unused CMM Consume the mine s fugitive methane (VAM) Coal Seam Stratum Gallery Consumer gas Fuel for G/E or Boiler VAM Treatment Optional System Stratum 35

Performance Gene-set For Reference Output of Generator(kWe) 850 Utilization of VAM & CMM (Nm 3 /hr) 23,000 GHG Reduction (t-co 2 e/year) 54,000 Option Mitigation of VAM & CMM (Nm 3 /hr) GHG Reduction (t-co 2 e/year) *** *** Reduce More Than 54,000 GHG 36

Features of the System Excellent capability for VAM mitigation Stable Operation on low methane concentration (CH 4 < 2%) Safety due to no need for flammable gas compression Electricity generation by unused VAM and CMM No NOx emissions No Cooling Water required Mobile Unit would be available Low Cost for GHG reduction 37

Schedule of the Planned Project Fiscal Year Practical Test Plan FS F/S (NEDO Fund) Design of plant Manufacturing of plant Local foundation work Installation & test 2010 2011 2012 2013 Commercial Operation 38

JCOAL http://www.jcoal.or.jp/ Thank you! Mitsubishi Heavy Industuries (Gas Engine) http://www.mhi.co.jp/ Osaka Gas (CMM Concentration) http://www.osakagas.co.jp/ Kawasaki Heavy Industries (VAM Turbine) http://www.khi.co.jp/ 39