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Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Abandoned Coal Mine Methane Recovery – the ideal
opportunity to meet Ohio’s Renewable Portfolio Requirements
Prepared by Mark O’Brien and Cal Peters
Final Draft
March 2, 2009
Tappan Lake, Harrison County, Ohio
Page 1 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
What is Coal Mine Methane
Coal mine methane is a low-grade form of methane, which is the primary ingredient in
natural gas. Coal mine methane is easily recovered and processed into clean burning
natural gas and has the added benefit of limiting methane seepage into the atmosphere
and damaging our environment.
“Methane is the primary constituent of natural gas. Thus, the collection and
utilization of methane provides a valuable, clean-burning energy source that
improves quality of life in local communities and can generate revenue and
improve living standards. Producing energy from recovered methane can also
replace higher-emitting energy resources such as wood, coal and oil…
Capturing methane from coal mines can also improve safety conditions by
reducing explosion hazards.” Source: US EPA
The United States Environmental Protection Agency describes Methane as the following:
A hydrocarbon that is a primary component of natural gas that can be used as energy.
A “greenhouse” gas that is 23 times as potent as carbon dioxide and a major
contributor to global warming. Reducing emissions can lead to important energy,
safety, economic and environmental benefits.
A gas emitted from a variety of both anthropogenic (human-influenced) and natural
sources. Anthropogenic emission sources include agriculture, coal mines, landfills and
natural gas and oil systems.
Page 2 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Methane is a “renewable” fuel
U.S. Congress
The 109th US Congress defined a “renewable fuel” in P.L. 109-58 (H.R. 6, 1501) or the
Energy Policy Act of 2005 as follows:
“Renewable fuel” to include ethanol, biodiesel, and natural gas
produced from landfills, sewage treatment plants, and certain
other sources.
Pennsylvania Legislature
In November of 2004 Pennsylvania passed S.B. 1030 to establish their Renewable Portfolio
Standards. Those standards included coal mine methane as a tier 1 renewable fuel source
and provided it the REC incentives that have resulted in significant clean energy production
and reduced greenhouse emissions.
Pennsylvania, like Ohio, has vast abandoned and working coal mines that have varying
levels of recoverable methane.
Leading Scientific Research
Scientific research is suggesting that anaerobic microbes in coal mines convert
hydrocarbons to methane. A number of companies including Synthetic Genomics and Luca
Technologies are working to understand how methane is created. Research by a number
of firms is ongoing.
Page 3 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Abandoned coal mine methane delivering the right results -
Renewable clean fuel, energy efficiency and reduced greenhouse gas emissions
Pennsylvania
Multiple projects are ongoing in Pennsylvania. Coal Gas Recovery LP has ongoing projects in
Southwestern Pennsylvania. Their projects are expected to eliminate almost 600,000 tons of
methane emissions per year and generate enough pipeline quality methane gas to heat 15,000
homes a year. Source: EPA Transcripts of Statement of Kathleen A. McGinty April 13,2004
Alabama Project
A CMM project at four mines in Brookwood, Alabama is reducing emissions by 1.5 million
metric tons of carbon equivalent annually through the sale of 13 billion cubic feet of methane
each year to local gas company. Source EPA
Illinois
The Corinth Abandoned coal mine methane project in Franklin County Illinois started on June
3, 2005 and has reduced annual green house gas emissions by 180,000 metric tons carbon
dioxide equivalent. All methane gas recovered was processed into clean burning pipeline-
quality gas.
Source: http://www.netjets.com/About_NetJetsrinth_coal_mine_methane_project.asp
Ohio
Harrison County Ohio has an ongoing project recovering abandoned coal mine methane from
three mines. This project has significant upside potential, however, at current market prices
for natural gas it is not commercially viable and production has been significantly reduced.
CBM Ohio, LLC, the operators of the project have provided the following projections for full
development of their mines under contract. The project is projected to recover 800,000,000
cubic feet of methane per year, 239,000 megawatts of electricity equivalents or the ability to
heat nearly10,000 Ohio homes annually. Additionally, the projects will safely capture and
process the equivalent of 323,200 metric tons of carbon. Finally, CBM estimates that the
regional economic impact of the abandoned mines at full production will be $6,000,000
annually including royalties to land owners, service contracts, supplies, and payroll.
Page 4 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Benefits of Amending the Ohio Energy Act of 2008 to include the
recovery of abandoned coal mine methane as a renewable fuel
(Senate Bill 221)
Ohio has hundreds of square miles of underground coal mines.
Abandoned coal mine methane is arguably the most cost-effective renewable energy for
Ohio when compared to all other sources readily available in the state.
Abandoned coal mine methane is considered a dispatchable base-load source of
consistent energy for utilities (available 99.5%+ of the time) and is not subject to
variations in weather patterns.
Abandoned coal mine methane recovery is a safe and proven technology based on
successful projects in Alabama, West Virginia, Pennsylvania, Illinois and Ohio and these
projects are close to commercial viability. At current natural gas prices, a history of large
price swings, and a bleak energy outlook in terms of pricing, private investors are
reluctant to fund and develop new projects. The designation of CMM as a renewable
energy source with REC incentive will allow for pricing stability and bring many of these
projects back to commercial viability and help Ohio achieve their RPS goals. CMM
recovery projects should not require additional state subsidies or grants.
CMM recovery in most areas of Ohio will use existing natural gas pipeline infrastructure
which has excess capacity.
Pennsylvania has several active projects recovering and using methane in energy
production and the developers are receiving renewable energy credits. It is expected
that Pennsylvania will compete regionally in CMM as the REC market matures.
CMM fits the criteria recommended by the National Renewable Energy Laboratory on
successful RPS policy namely:
Availability of sufficient energy resources
Balancing a State’s goals for fuel diversity, economic development, price effects
and environmental benefits
County Square Miles of Underground Mines
Belmont 220
Jefferson 89
Harrison 63
Athens 61
Perry 51
Page 5 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Methane Recovery and Distribution Process
The Methane Recovery process is safe and can leverage existing underutilized
infrastructure.
Page 1 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
A new broader focus on overall energy versus an electricity-only
strategy using renewable fuels
The new Obama Administration’s Energy agenda is focused on expanding renewable energy
sources and increasing energy efficiency by “deploying the cheapest, cleanest, fastest
energy source.” The recovery of abandoned coal mine methane can significantly help Ohio
meet the Administration’s new renewable energy targets while providing reliable, efficient,
and clean fuel.
Additionally, Speaker Nancy Pelosi and Senate Majority Leader Harry Reid requested, in
a letter dated February 26, 2009 to the Capital Architects, that they need to develop a
plan and cost estimate to retrofit the Capital Power Plant from coal to100% natural gas.
The leaders believe that this project would “quickly reduce emissions and petroleum
consumption through energy efficiency, renewable energy, and clean alternative fuels.”
In order to meet its renewable energy challenges, consumers and governments need to
utilize a wide variety of fuel sources to meet their energy needs. Concentrating solely on
creating renewable electricity significantly reduces the opportunity for Ohio to meet its
goals.
Consumer Energy Needs
The first states that implemented renewable energy strategies were focused on the
generation of electricity. In fact, the first two dozen states to implement RPSs didn't have
abandoned coal mines. Pennsylvania was the first state to develop an RPS that had
hundreds of square miles of abandoned coal mines and they wisely included this abundant
resource into their portfolio. Obviously, wind and solar must be used in the generation of
electrical power for utilities but other renewable sources such as ethanol, biodiesel and
methane from landfills or coal mines would be better used and much more efficient to
power gas appliances, home heating, transportation, and other uses.
Electricity
Natural Gas Lighting, heating Heating
Small appliances – TVs, toasters,
microwaves, computers, etc.
Major appliances – dryers, ovens,
stoves,
Page 2 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Using the “right” energy source returns the greatest efficiency
The following illustration provides an example of developing a consumer energy strategy
that maximizes efficiency by proper renewable resource allocation.
Electrical power generation, distribution and transmission is less efficient and more
detrimental to the environment, than is natural gas.
Consumers and businesses require both electricity and natural gas to meet their
energy needs.
From production to delivery to the consumer, natural gas is 90% efficient versus
electricity at 27% efficiency.
Clean natural gas produces 2/3 less emissions than coal and will help reduce Ohio’s
carbon emissions.
Source : Energy Efficiency benefits of Natural Gas Programs by Paul Raab, presented on June 24, 2008.
Page 3 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Not all renewable fuels are used in electricity production
Government incentives and investment should focus on developing multiple renewable fuel
sources and provide incentives to meet energy needs state- and nation-wide. Renewable
Portfolios should be based on the following factors:
Available today with a consistent supply
Affordability today and into the future
Flexibility to meet multiple energy needs
Potential to meet renewable energy targets
As the following table suggests, Ohio’s portfolio would be greatly enhanced with the
inclusion of methane recovered from abandoned mines because it would more efficiently
provide direct energy to power plants, households and/or to the transportation system by
flowing it directly to the end user. Furthermore, these projects are “shovel-ready” and
should not require additional Federal or State subsidies or grants.
Renewable Fuel
Predominant Usages
Solar
Electricity only
Wind
Electricity only
Biodiesel and Ethanol
Transportation
Bio Mass
Electricity
Methane
Electricity, heating, appliances,
CNG/transportation
Page 1 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Ohio Strategic Energy Plan
Ohio has developed ambitious renewable energy goals over the next 40 years. The
following chart summarizes the proposed power generation fuel mix to reach their
renewable and greenhouse emissions.
Source: National Wildlife Foundation
The 2020 Green Investments projection assumes that, using current available technology,
Ohio makes:
1. Improvements in efficiency to reduce overall demand by 25%
2. Shifts away from fossil fuels so that 20% of power generation is from renewable energy
sources.
The 2050 goal assumes that hydro and nuclear are unchanged, continued efficiency
improvements keep total demand flat and renewable energy replaces at least 65% of power
generation formerly done through fossil fuel burning.
Ohio’s new energy plan could be achieved by:
1. Expanding solar power using photovoltaic systems and concentrating solar power
systems
2. Expanding wind power even though Ohio ranks 36th in the U. S. in wind power potential
3. Expanding Biomass power using 19 million dry tons of biomass available each year to
generate 3,800 MW of electricity
Page 2 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Current Renewable Energy Products Many states are in the process of subsidizing the development of renewable energy projects
and Ohio can learn from the successes and failures of these projects. Ohio, nor any other
state for that matter, has unlimited financial capabilities to fund any and all projects so
resources must be invested wisely.
New Jersey Solar 4 All Program
Goal: Generate120 megawatts of solar power to communities and customers at a cost of
$773 million.
PSE&G proposes four segments to reach this goal including:
Neighborhood solar – installing 200,000 solar panels on utility poles
Local Government solar – roof-mounted solar on government buildings
Centralized Solar – develop solar farms on brown fields, non-profit real estate,
underdeveloped real estate and PSE&G properties
HMFA Solar – roof mounted solar on affordable housing communities
Source: Press Release from PSE&G on Solar 4 All Program
The City of Lansing Michigan’s Solar Project
Goal: To generate electricity to 50 homes in Lansing, Michigan (does not include heat energy
needs).
Source: Lansing newspaper articles and project vendors
Initial Cost $600,000
Estimate Annual Production 83,804 kWh
Actual efficiency rating with average of 4.1 hrs of
sunshine year round*
.17%
Estimated Revenue Generation $10,056
* Solar hour calculation based on First Look Look Software
Page 3 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Solar Hot Water Heating
Using solar energy to heat hot water is a typical residential project. A typical solar hot water
heating system will cost approximately $5,200 installed and will deliver approximately 73% of
hot water energy needs. The following table provides the savings for each fuel and the
calculated simple payback for a solar water-heating system. As you can see the ROI is
extremely long especially in Ohio which consistently has less sunshine per day than the South
and Southwestern regions of the United States. The chart below has been specifically
calculated for Ohio.
Electric example: Annual Savings = 12,080,000 Btu/3413 Btu per KWh*$0.10
per KWh = $353.94 savings per year.
$5200.00 installed cost / $353.94 annual savings = 14.7 years simple payback
Natural gas example: Annual Savings = 12,080,000 Btu * $6.00 per
DKT/1,000,000 Btu per DKT * .70 Efficiency = $103.54
$5200.00 installed cost / $103.54 annual savings = 50.2 years simple payback
Fuel oil example: Annual Savings = 12,080,000 Btu * $2.50 per gallon of fuel
oil/130,000 Btu per gallon of fuel oil * .70 Efficiency = $331.86 savings per year.
$5200.00 installed cost / $331.87 annual savings = 15.7 years simple payback
Source: Green Energy Ohio, Solar Electricity in Ohio Newletter.
Page 4 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
The Challenges for Ohio’s Renewable Energy Initiative Ohio has renewable resource constraints in terms of solar and wind that will result in increas-
ing project costs and lower energy generation potential.
Resources for Renewable Fuels in Ohio
Wind Power in Ohio
Ohio ranks 36th in terms of future wind power potential based on the map below created by
the United States Department of Energy. While wind is promising in the central and mountain
states it seems to have only limited viability in Ohio and results in higher costs per Mega Watt
hour than in other more wind prone states.
Page 5 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
This issue is highlighted by the relative cost and output of the Ohio Green Mountain Wind
Farm. The project’s goal is to generate electricity for 1,750 houses per year. The project
details are below:
Ohio will have to make substantial initial and ongoing investments in wind power to achieve
their renewable energy goal.
Solar Power in Ohio
Solar power generation plants are being built and resources used to incentivize consumers
and businesses to install solar. Ohio has limited solar power generation capability based on
data supplied from the National Renewable Energy Laboratory. The following map show the
existing large-scale solar facilities in the U.S.:
Initial Cost $10,000,000
Maximum Capacity 7.2 mega watts
Actual Effective Output* 1.8 mega watts
Annual Voluntary Subsidy $200,000
Electrical Generation 14 million kWh/year
* Intermittent wind estimated at approximately 25%.
Source: Paul G. Brock P.E., Asst Director of Utilities, Bowing Green Ohio
Page 6 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Solar power generation will cost approximately $7,000 to $10,000 per kilowatt when installed
on a residential home and based on a report from Green Energy Ohio, a 2 kilowatt system
will save the homeowner $375 annually. Ohio has a marginal solar base and will need to
enhance incentives to generate investment by individuals. Plus, large scale solar projects will be
very costly.
While no direct comparison exists for Ohio the chart below provides the EIA projections for
renewable energy costs in NJ, a state with a similar Solar Profile. Solar is one of the most
costly renewable energy sources in New Jerseys’ RPS.
EIA Projections of NJ Renewable Energy Costs for Proposed 20% RPS
$0
$2,000
$4,000
$6,000
$8,000
Solar Biomass Landfill Gas Coal Wind NGCC
EIA Projections of Renewable Energy CostsForum on the Economical Impact
Analysis of NJ's Proposed 20% RPSCost Per Kw
Page 7 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
One Solution -
Amending the Ohio Energy Plan to Include Coal Mine Methane
One example of recovering CMM is in Harrison County, Ohio. There is currently a pilot project
to collect abandoned coal mine methane from the abandoned Portal mine. The project is
projected to produce 800,000,000 cubic feet of methane, and 239,400 megawatts annually in
electricity equivalents. Furthermore, carbon emission reduction from safely capturing and
processing the methane is projected at 323,200 metric tons.
Ohio has 484 square miles of known abandoned mines in the five highest-mined counties and
could potentially deliver a significant amount of clean natural gas for use in energy generation
and should not require state or federal grants, subsidies or loans.
The following table provides a summary of Ohio’s energy needs and renewable targets and how
the addition of a single CMM project can help meet renewable energy targets and carbon
reduction.
Ohio Energy Consumption (2005)
160,176,000,000 kWh yearly
5% renewable energy by 2012
8,008,800,000 kWh yearly
2006 Ohio Renewable Energy power
generation from Wind and Biomass
(included Bowling Green Wind Farm)
408,246,978 kWh yearly
2006 current renewable energy
generated to meet 5% 2012 renewable
energy goal
5%
With addition of Harrison County CMM
Recovery only
239,400,000 kWh yearly
2012 Goal of 5% with Harrison CMM
added into the renewable portfolio
8%
Source: US DOE Energy Efficiency and Renewable Energy Website
Page 8 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
One Solution -
Coal Mine Methane Recovery is a cost effective renewable source
According to the National Renewable Energy Laboratory, “successful Renewable Portfolios
should be developed with fuel diversity, economic development price effects and environmental
benefits.” CMM recovery will enhance Ohio’s RPS through fuel diversity, price and
environmental benefits. The following table illustrates a strong rationale to amend Senate
Bill 221 and expand the RPS to include a fuel that is abundant in the state, cost-effective and
environmentally-friendly.
Based on similar renewable projects both in Ohio and the region, Ohio will have difficulty
achieving their goals without the inclusion of abandoned coal mine methane recovery.
Lansing
Solar
NJ Solar Residential
PV 2 kW
Bowling Green
Wind Farm
Project Cost $600,000
$770,000,000 $20,000 $10,000,000
Rated Megawatts 0.056
120 n/a 7.2
Effective Megawatts 0.17
22.8 n/a 1.8
Revenue/yr @
$0.11 kWh
$9,218 $24,637,500
$375 $1,468,000
Page 9 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Bibliography
USA. US Department of Energy. Energy Efficiency and Renewable Energy Http://
apps1.eere.energy.gov/states/electricity.cfm/state=OH#fuel. 02 Mar. 2009.
USA. U.S. Environmental Protection Agency. Http://www.epa.gov/methane/. 26 Feb. 2009.
USA. White House. Http://www.whitehouse.gov./agenda/energy_and_environment/. 2 Mar. 2009.
USA. The General Assembly of Pennsylvania. Senate. USA. White House. Http://
www.whitehouse.gov./agenda/energy_and_environment/. 2 Mar. 2009. 2 Mar. 2009.
Dolan, Kerry A. "Gassy Bugs." Forbes.com (2007). 2 Mar. 2009 <http://
www.forbes.com/2007/10/10/kleiner-perkins-green-technology-
cz_kd_1011gassybugs.html>.
Brock, Paul G. "Ohio Wind Farm." E-mail interview. 26 Feb. 2009.
EPA Transcripts of Statements (2004) (testimony of Kathleen A. McGinty).
Solar Electricity in Ohio. Columbus: Green Energy Ohio.
USA. Department of Energy. National Renewable Energy Laboratory. 2 Mar. 2009 <http://
www.nrel.gov/wind/>.
Charting A new path for Ohio's Electricity Generation and Use. National Wildlife Federation
USA. Department of Energy. Energy Information Administration. 2 Mar. 2009 <http://
www.eia.doe.gov/fuelrenewable.html>.
.
Page 10 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Bibliography (cont’d)
USA. EPA. Power Partners Resource Guide. 2 Mar. 2009 <http://
www.uspowerpartners.org/Topics/SECTION6Topic-CoalMineMethane.htm>.
Corinth Coal Mine Methane Project. 2 Mar. 2009 <http://www.netjets.com/About_NetJets/
corinth_coal_mine_methane_project.asp>.
USA. Ohio Legislature. Senate. Http://lsc.state.oh.us/coderev/sen127.nsf/Senate+Bill+Number/0221?
OpenDocument. 2 Mar. 2009.
PSE&G. "PSE&G Solar 4 All Program." Press release. Public Service Electric and Gas Company.
USA. Ohio Department of Natural Resources. Http://www.dnr.state.oh.us/.
kWh yearly
Page 1 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
Proposed Changes to the Senate Bill 221 to include CMM
127th G.A.
Am. Sub. S.B. No 3221 Page 10
Section (35)
"Renewable energy resource" means solar photovoltaic or solar thermal energy, wind energy,
power produced by a hydroelectric facility, geothermal energy, fuel derived from solid wastes, as
defined in section 3734.01 of the Revised Code, through fractionation, biological decomposition, or
other process that does not principally involve combustion, biomass energy, biologically derived
methane gas, methane gas emitted from abandoned coal mines, or energy derived from non-treated
by-products of the pulping process or wood manufacturing process, including bark, wood chips,
sawdust, and lignin in spent pulping liquors. "
Section (25)
"Advanced energy project" means any technologies, products, activities, or management practices or
strategies that facilitate the generation or use of electricity or energy and that reduce or support
the reduction of energy consumption or support the production of clean, renewable energy for
industrial, distribution, commercial, institutional, governmental, research, not-for-profit, or
residential energy users. Such energy includes, including, but is not limited to, wind power;
geothermal energy; solar thermal energy; and energy produced by micro turbines in distributed
generation applications with high electric efficiencies, by combined heat and power applications, by
fuel cells powered by hydrogen derived from wind, solar, biomass, hydroelectric, landfill gas, or geo-
thermal sources, or by solar electric generation, landfill gas, coal mine methane, or hydroelectric
generation advanced energy resources and renewable energy resources. "Advanced energy project"
also includes any project described (25) described in division (A), (B), or (C) of section 4928.621 of
the Revised Code.
Page 1 Ohio’s Abundant Renewable Energy Supply is Right Under Our Feet
For more information or questions concerning this report, please
contact:
Mark O’Brien
President, CBM Ohio, LLC
502-228-9698
For more information on CBM Ohio, please visit our website at www.cbmohiorenewable.com.
Note: The information contained in this document is based on the best data available at the time.
The data has not been audited by environmental engineers for accuracy.