Sudilovskaya Elena
Faculty:"Geotechnology and management of production"
Speciality:"Ecology of mining technologies"
Theme of master's work:"Estimation of methane supplies in the mining field of Zasyadko mine"
Theme of master's work:"Estimation of methane supplies in the mining field of Zasyadko mine"
Leader of work:Professor, d.t.s. Kostenko Viktor Klimentievich
Materials on the theme of master's work:
Links | Report about the search | Abstract
1. IMPORTANCE OF COALBED METHANE IN UKRAINE
Commercial development and utilization of methane in Ukraine will have many positive benefits to the economy, the environment, and to the coal industry. A fully implemented methane development project will result in the following: • creating an alternative energy source that would mitigate Ukraine’s dependency on imported fuel; primarily natural gas from Russia and other CIS countries, • reducing the amount of methane, a potent greenhouse gas, that Ukrainian coal mines release to the atmosphere, and • improving coal mine safety, coal mine employee health, and productivity. In 1999, the Cabinet of Ministers of Ukraine considered a national energy program for 2000 to 2010. This program includes a set of goals for the energy sector to achieve a more balanced supply/demand situation through a combination of alternative energy sources and energy efficiency programs. One of the goals is to have eight billion cubic meters of methane produced per year by the year 2010. For the purpose of this business plan, the following definitions apply: • coalbed methane (CBM) – methane contained in coal seams and the rock strata surrounding the coal seams and • coal mine methane (CMM) – methane contained in coal seams and the rock strata surrounding the coal seams in reserve areas that have been assigned to specific mines.
2. COALBED METHANE AS AN ALTERNATIVE FUEL SOURCE
The large-scale capture and utilization of CBM could contribute greatly towards Ukraine’s energy requirements. Ukraine currently consumes approximately 75 billion cubic meters of natural gas on an annual basis while only producing approximately 18 billion cubic meters from domestic sources. This shortfall, of approximately 57 billion cubic meters per year, is being imported creating a serious increase in foreign debt. Ukraine receives 30 billion cubic meters of natural gas from Russia each year as compensation to transport Russian natural gas to Europe through pipelines located in Ukraine. The remaining 27 billion cubic meters of natural gas is sold to Ukraine at $80 per thousand cubic meters thus creating a negative balance of trade in excess of $2 billion per year. Increasing domestic standard natural gas and oil production is not an economically feasible option for Ukraine. Under the Soviet Union, the larger and shallower natural gas and oil reserves were depleted; leaving small, deep, and more expensive reserves that will require vast capital resources to develop that Ukraine does not possess. It is clear that the gas produced from a commercial CBM development project would have a ready market that would enhance the economic conditions in Ukraine.
3. ENVIRONMENTAL BENEFITS OF USING COAL MINE METHANE
Methane is one of a number of gases that scientists believe contribute to the greenhouse effect, the trapping of heat in the Earth’s atmosphere. The extent to which any given greenhouse gas traps heat is measured relative to the heating effect of carbon dioxide. Methane is estimated to be 21 times as potent as carbon dioxide in trapping atmospheric heat over a hundred year period. Methane and other greenhouse gases are released to the atmosphere through various natural processes and through many human activities, such as the mining of coal. Capturing and utilizing CMM in Ukraine can significantly reduce the amount of greenhouse gas that coal mines presently emit into the atmosphere. During 1999, Ukrainian coal mines generated approximately 2,060 million cubic meters of methane. Through degasification systems, the mines captured approximately 257 million cubic meters of methane (13% of the total generated) and used only 79 million cubic meters of the captured methane; thus emitting approximately 1,981 million cubic meters of methane into the atmosphere. Not only this is a waste of a vitally needed energy source but CMM emissions contribute to the greenhouse gas effect. The development of CMM projects in Ukraine can reduce the amount of gas coal mines emit into the atmosphere. In addition, with the advent of the trading of carbon credits, Ukrainian coal mines could be considered as candidates to generate these credits. As of July, 2000 over $30 million of carbon credit transactions have taken place on a worldwide basis. Total potential market for carbon trading could reach in excess of $10 billion by the year 2010. Thus far, the carbon credit transaction values have only been a fraction of the costs that would be incurred to reduce greenhouse gas emissions. However, there is not a consensus among economists in determining the total mitigation costs that should be included in reducing greenhouse gas emissions. Mitigation costs of CMM development projects in Ukraine may be considerably less than those expected in the United States.
4. COAL MINE METHANE AS A HEALTH AND SAFETY ISSUE
The development of CMM projects at coal mines in Ukraine can greatly reduce the number of accidents and fatalities that Ukrainian mines are presently experiencing. In 1999, Ukraine coal mines experienced 296 fatalities, or 3.7 deaths per one million raw tones of coal produced. This grave statistic is one of the worse in the world. Many of the fatalities are the result of outbursts caused by high gas content and from explosions caused by the ignition of explosive concentrations of methane. Pre-mining degasification of the coal reserves, with the drilling of vertical wells and utilizing enhanced underground degasification system, would greatly reduce the accident and fatality rates in Ukrainian coal mines. In addition, removal of the methane from the mines will increase productivity by reducing the number of mine slowdowns or shutdowns due to high methane levels. CMM development projects can reduce coal mine accidents and fatalities, while at the same time lower their mining costs by increasing productivity.
5. INTRODUCTION
This business plan for a commercial CMM development project at the Komsomolets Donbass Mine demonstrates the financial viability of such a project utilizing Western equipment and technology. The business plan was developed in cooperation with Western CBM development experts, Western energy experts, and data and information provided from Ukrainian CBM and energy professionals. The project includes a Pilot Project Phase, an Evaluation Phase, and a Development Phase. Each Phase will be implemented in a manner to maximize the project cash flow and is patterned after development projects that have been successfully implemented in other countries. Prior to the start of the Pilot Project, additional time and expenses will be required to confirm the status of current Ukrainian laws and current tax regulations, creating a business structure to implement the project, contracting with Western drilling and completion organizations, and other necessary steps that are required to start a project in a developing country. These related expenses have not been included in this business plan and have been assumed that they will be absorbed by the project developer. It is recognized that in Ukraine, as in most developing countries, many legal, economic, and administrative barriers will have to be overcome for the successful implementation of such a project as set out in this business plan. Many of the assumptions that have been made in assembling this business plan must be verified and/or revised based on current conditions prior to implementing the project.
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