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Central Mining Institute, Katowice, Poland UPDATE ON CMM ACTIVITIES IN POLAND Jacek Skiba Zdzisław Matysiak Adam Spyra Central Mining Institute, Katowice, Poland Experimental Mine „Barbara” Spółka Energetyczna „JASTRZĘBIE” S.A.

Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

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Page 1: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

UPDATE ON CMM ACTIVITIES IN POLAND

Jacek SkibaZdzisław MatysiakAdam Spyra

Central Mining Institute, Katowice, PolandExperimental Mine „Barbara”

Spółka Energetyczna„JASTRZĘBIE” S.A.

Page 2: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

CCoaloal production and production and imports in imports in MMt in 200t in 20099

POLANDPOLAND

SOURCE: SOURCE: EURACOALEURACOAL

3

Page 3: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

The role of coal The role of coal inin power power generation in generation in PolandPoland

POLANDPOLAND

Hard coal

Lignite

CoalCoal’’s share s share 91%91%

EU 27Coal’s share 29

%

SOURCE: SOURCE: EURACOALEURACOAL

4

Page 4: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Location of major Polish Location of major Polish hardhard coalcoal basinsbasins

4

2008 DATA2008 DATARESOURCESRESOURCES::67 900 67 900 MtMtBALANCED BALANCED RESERVESRESERVES::43 201 43 201 MtMtCOMERCIAL RESOURCES:COMERCIAL RESOURCES:4 338 4 338 MtMt

2009 DATA2009 DATAEMPLOYMENTEMPLOYMENT111166 122122NUMBER OF MINESNUMBER OF MINES3131

HARD COAL COMPANIESHARD COAL COMPANIESKOMPANIA WKOMPANIA WĘĘGLOWAGLOWAKATOWICKI HOLDING KATOWICKI HOLDING

WWĘĘGLOWYGLOWYJASTRZJASTRZĘĘBSKA SPBSKA SPÓÓŁŁKA KA

WWĘĘGLOWAGLOWAPOPOŁŁUDNIOWY KONCERN UDNIOWY KONCERN

WWĘĘGLOWYGLOWY

* completion of * completion of mining activities mining activities inin

20002000

Page 5: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

LOCATION OF THE HARD COAL MINES IN UPPER SILESIAN COAL BASIN

Jastrzębska Spółka Węglowa

Kompania Węglowa

Katowicki Holding Węglowy

Kopalnie samodzielne

Jastrzębska Spółka Węglowa

Kompania Węglowa

Katowicki Holding Węglowy

Kopalnie samodzielne

Page 6: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Upper Silesian Coal Basin : Presently 30 operating hard coalminesincluding: 27 gassy coalmines 20 use drainage systems 14 utilise CMM data for the end of 2009

Page 7: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

TOTAL ANNUAL HARD COALTOTAL ANNUAL HARD COAL& CMM PRODUCTION& CMM PRODUCTION

Hard coal output: 77.4 mln Tonnes

Total absolute gasiness: 855.71 mln m3

data for the end of 2009

Page 8: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Support system for CBM & CMM in Poland

Since March 11th, 2010 there is a support system for electricity produced from high efficiency cogeneration (Primary Energy Saving> 10%) from CBM and CMM.

This system is a real financial support for the efficient utilisation of CBM and CMM.

According to the energy law records, this system, will be valid until the year 2018

Page 9: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Taking over the energyproduced from methane gaswith the system of energy origincertificates (from cogeneration).

Page 10: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• The heart of the matter of the support systemwas to put the obligation on the energycompanies selling the electricty to the end-users to buy and present it to the Presidentof Energy Regulation Office in order to be remitted, certain amount of certificates of electricalenergy origin, produced in cogenerationor paying supplementary fee instead !

Page 11: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• Dividing the certificates of electrical energy origin fromthe physical energy, enabled sales on the commodityexchange the property rights of individual certificates

The supplement to this mechanism is the obligation for the energy companies, who act as the assigned sellersto purchase all electrical energy produced incogeneration, which is connected to the grid, andlocated within the territory of individual assigned energyseller, at average market price of electrical energy.

In consequence of above the producer of electricalenergy in cogeneration gets two sources of revenue: from the sales of property rights of individual certificatesand from the sales of physical electrical energy.

Page 12: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• It must be emphasized that above system could be effective only several months during the year, whenthere is sufficient demand for the heat.

The prospective number of customers for the heat duringthe whole year is not very big. Additionaly, methanecapture from the coal beds can vary a lot and can be highly unpredictable. Considering above it is difficult to secure constantsupplies and secure heat delivery from the sourcesfired with this fuel.

The coverage of heating pipelines, in contrary to thepower grid has local extent only and due to this fact, thethe sources cooperating with it have to be predictable.

Page 13: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• In the amendment of the act „Energy Law”a new regulation was introduced, whichextends the range of issuing thecertificates of origin from the cogeneration(so-called purple certificates) by thecogeneration units fired with gas fuelsreleased and captured during theunderground mining works in the open andbeing liquidated hard coal mines. In the year 2011 there will be analysis ofeffectiveness of above support system.

Page 14: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• Presently, the ratio of economicalutilization the methane captured in thedrainage stations of the coal mines isabout 60%.If it grows – it can be assumed thatthe support system is sufficient.

Page 15: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Spolka Energetyczna Jastrzebie S.A. (SEJ S.A. ) is the largest CMM user for electricity productionin Poland.

In the year 2009 they produced over 200 000 MWhfrom CMM.

Spółka Energetyczna„JASTRZĘBIE” S.A.

Page 16: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

The examples of power units suppliedwith methane

Gas supply system to the gas enginesin heat and power plant „Pniówek”

Page 17: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Energy effects of methane utilization

Page 18: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Challenges for Polish CMM and CBM

• Only 30% from 855.71 mln m3 of methane released during miningoperations is being captured by drainage systems.

• Only about 60% of drainage gas is being utilized…

• Will the supporting system for the cogeneration energy be able to stimulatemore efficient utilisation of CMM ?

• 70% of methane released during mining operations is being vented to theatmosphere; VAM projects are needed !

• Post Kyoto situation. Government assitance needed. Consideration of VAM & CMM emissions’ reduction in the national plan ofallocations

Page 19: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

• Shale gas operations in Poland another hope for Polish CBM when implementing new DirectionalDrilling Technologies ???

Companies:Poltex-Methane, New Millennium Resources Poland, EurEnergystill in Silesia region….

Assistance needed ! especially Technology !Investors !

Page 20: Central Mining Institute, Katowice, Poland · Central Mining Institute, Katowice, Poland Support system for CBM & CMM in Poland Since March 11th, 2010 there is a support system for

Central Mining Institute, Katowice, Poland

Thank you for your attention

Jacek Skiba: [email protected] Mining Institute, Poland

Zdzisław Matysiak: [email protected] SpyraSpółka Energetyczna „Jastrzębie” S.A.