CREA Energy Innovations Summit

Coal Mine MethaneElectric Power Generation

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Julian HuzykProject Manager

Vessels Coal Gas, Inc. 3MW LLC & North Fork Energy LLC

Coal Mine Methane CaptureOperations:• Pennsylvania, Illinois & ColoradoProducts:• Natural Gas• Electric Power• Carbon Offsets• Alternative Energy CreditsRegulatory:• Verified Carbon Standard • California Air Resources Board• CPUC RPS Qualification

Vessels Coal Gas, Inc.

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Cambria 33 Resources LLCAbandoned coalmine in PAMethane recovery commenced in 2008Natural gas salesElectric generation30% CH4 inlet gas

Vessels Coal Gas Inc™

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Oxbow Mining LLC’sElk Creek MineSomerset, CO

Vessels Coal Gas Inc™

3MW LLC& North Fork Energy LLC

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3MW LLC PROJECT SCOPING AND PARTNERING

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Methane Drainage System

Vessels Coal Gas Inc™

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Methane Drainage System

Vessels Coal Gas Inc™

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MDS Modification & Inlet Gas Piping

Vessels Coal Gas Inc™

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Thermal Oxidizer

Surveyed OEM’s

Selection Price Schedule Operational

range PLC

Vessels Coal Gas Inc™

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Combusts Methane Drainage System gas

Enclosed open top cylinder

Sized to allow sufficient residence time to ensure efficient destruction of methane

2 burner rings with multiple vortex inducing nozzles

High turn-down ratio• transition to beneficial

use• back-up combustion

Thermal Oxidizer

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Vessels Coal Gas Inc™

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MCC & SCADA Buildings

Vessels Coal Gas Inc™

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Gas Conditioning Receive gas at 150

⁰F Split stream

between Thermal Oxidizer & Electric Generators

Monitor methane concentration

Compress & condition for delivery to generators

Vessels Coal Gas Inc™

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Electric Generation Equipment

Reviewed OEM engines capable of combusting low CH4 concentrations

Competitive bid evaluation

< 25% CH4 design basis for fuel gas Selected 1.0 MW

units Operational

flexibility Portability

Vessels Coal Gas Inc™

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Electric Generation

1500 hp engines each consume 220 mmbtu/d

1800 rpm Each

generator nominal 1.1 MW of power at 4160 volts

Vessels Coal Gas Inc™

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7,500 KVA Transformer

Vessels Coal Gas Inc™

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Electric Substation Steps 4160

volts up to 46 kV

7,500 KVA base rated transformer

Electric metering

Spare switchgear

Ready expansion capability to

9,300 KVA Vessels Coal Gas Inc™

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High Voltage Utility Tie

Vessels Coal Gas Inc™

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Exhaust Heat Recovery

Vessels Coal Gas Inc™

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Oxbow Mining LLC - Elk Creek Mine

Somerset, COVessels Coal Gas Inc™

3MW LLC & North Fork Energy LLC

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NFRIA-WSERCConservation Achievement Award

2011 Pennsylvania Governor’s Environmental Excellence Award

Cambria 33 Project

Vessels Coal Gas Inc™

Wind4% of U.S. 10% of Colorado$100 B in past decade20% someday?

Vessels Coal Gas INC™

It’s Time to Get Real About Climate Protection

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“Since 1997 Colorado has installed nearly $4 billion worth of wind turbines and solar panels. These investments in a clean energy economy are a tremendous accomplishment.”

“But you will know we are serious about tackling climate change when we begin focusing on reducing METHANE emissions, not just on carbon dioxide.”

Randy Udall

2012: Hottest Year Ever for Lower 48Science Magazine

recently published a study showing that

methane and soot reduction would have the most

significant, immediate, and cost effective impact on global warming.

Vessels Coal Gas INC™24

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CARBON DIOXIDE 1 METHANE 21

GLOBAL WARMING POTENTIAL

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REMOVING 17,000 CARS

Waste Methane from 3MW LLC Saves 100,000 Tons CO2 each year

PLANTING 75,000 ACRES

Vessels Coal Gas INC™

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Coal WECC Natgas Wind, Solar, Hydro

Waste Methane

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5Metric Tonnes CO2 Equivalent

(tCO2e) /MWH

Climate Protection: Waste Methane reduces 3.9 tCO2e/MWH

Climate Damage: tCO2e emissions/MWHVessels Coal Gas INC™

Best Buys First: Waste Methane is one of Colorado’s most cost

effective Climate Investments

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Waste Methane Wind SolarCapital Cost per tCO2e for 20 years.

$-

$20

$40

$60

$80

$100

$120

$140

$160

Vessels Coal Gas INC™

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waste methane wind solarCapital Cost per MWHR (20 years)

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Best Buys First: Waste Methane is one of Colorado’s most cost

effective energy investments.

Vessels Coal Gas INC™

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Oxbow Mining LLCElk Creek MineSomerset, CO

Vessels Coal Gas Inc™

3MW LLC & North Fork Energy LLC