1. Classification and reporting of
ENERGY
Classification and reporting of
co-located coal and natural gas in energy basins
The need for an universal system

2. Ethiopia - 99% of households, 70% of industries and 94% of service enterprises use biomass as energy source.
12% of the Ethiopian population has access to electricity
As biomass accounts for more than half of Senegal's energy consumption
Benin's energy sector is largely dominated by the use of biomass-based energy sources
In Burkina Faso, more than 80 % of the energy supply derives from biomass 
About 90% of the total primary energy consumption is generated through biomass,
Rwanda‘s energy balance shows that about 85% of its overall primary energy consumption is based on biomass

3. Energy is the key to attaining all Sustainable Development Goals

4. Balanced development Rising population and increasing urbanization
Rising investments in the development of energy and minerals projects
Sustainable energy needs USD1.25 trillion per year, 3x current levels
Need to link the economy with social and economic imperatives

6. Desired outcomes
Impact projects: Measurable Triple Bottom Line (TBL) returns, namely the generation of social returns, economic viability/ profitability and environmental sustainability within the context of safe, socially accepted good practices
Performance: Enhanced project performance for energy projects anchored in internationally accepted standards and good practices
Leadership: Team-led, transferable project management and operational skills

8. Energy Basins
Dominant fuels – coal and oil & gas are to a large extent supplied from giant sedimentary basins
Some examples:
Oil & gas and coal and uranium in sedimentary basins in north China;
Central Asian energy basins
Coal and oil& gas in Gondwana basins of India and elsewhere - Karoo basin, Africa and Parana Basin, S. America, which is a source of coal and oil & gas
Coal and and oil & gas in sedimentary basins of Texas, USA
Coal Bed Methane - resources exist in all coal basins
All the energy basins will have potential of various other renewables energy sources

11. Defining resources with UNFC

12. UNFC – How Does it Work?

13. Comprehensive extraction
Mining in general is seeing declines in capital and labour productivity – mostly due to decline in grades combined with upgradation of mining infrastructure
Comprehensive extraction in 1990s looked into technical feasibility of extraction form lower grade and other uneconomical resources
Now it is seen as a way to improve overall economics and address health, safety and environmental issues

14. Assessing quantities – a “step down” process
Unconventional resources are 6-7x more than the primary) resources - proper assessment, classification and management required
UNFC includes currently commercial, potentially commercial and non-commercial quantities

15. Social & environmental considerations
EGRC has a Working Group to examine the social and environmental aspects of the classification. Two guidance notes are under preparation:
Accommodating environmental and social considerations in UNFC
Clarification of terminology and concepts related to UNFC
UNFC-2009 is incorporated into UN System of Environmental – Economic Accounting (SEEA)

17. Coal and CMM guidelines
UNFC structure
Principles
Rules
Guidelines
Coal and CMM rules
Coal and CMM guidelines

18. Why UNFC is best suited for classification of co-located resources?
Applicable to solids and fluids
Uniquely structured in 3 tiered documentation
Differentiates “in place” and “recoverable” quantities
Project maturity based classification
High levels of granularity
Embeds project risks
Helps investment decision making

19. Classification of CMM resources
Socio-economics
Project feasibility
Geological knowledge E F G
Safety
Utilisation
Fractures
Direct measurements
Conservation
Structures
Experimental
Environmental benefits
Dewatering
Gas trap
Theoritical
Local use
Recoverability

20. Comprehensive extraction lifecycle
Conceptual Studies
Scoping Studies
Pre-feasibility Studies
Feasibility Studies
Project Implementation
Decommissioning
Order of Magnitude
Studies
Conceptual Studies
Pre-feasibility
Studies
Feasibility
Studies
Project
Implementation
Mine closure, Remediation and Handover
Extraction Project
Development Unclarified
Development Pending
Justified for Development
Approved For Development
On Production
Sales Production
Non-Sales Production (Dissipated in wastes, products & environment)
Development On Hold
Development Not Viable
Additional Quantities in Place
Non-Commercial Project
Potentially Commercial Project
Commercial Project
3 3 4
3 3 4
3 2 1,2,3
2 2 1,2,3
1 1 1,2,3
Accurate and transparent management of energy & materials throughout the lifecycle

21. Co-located resources – commodity to service
Energy - No more a commodity!
New Business Models Needed
Commodity: A useful or valuable thing
Product - Differentiated and value added
Service - A system supplying a public need
Innovate at all costs

22. The fourth industrial revolution
Transformative
Win-win
Equitable
Productive
Resilient
Reliable
Creative
Resources
Business Model
Innovation
Workforce
Partners
Value Chain
“The Third Wave entrepreneurs will need to build partnerships across sectors …”
Steve Case, Co-founder, AOL in The Third Wave (2016)

24. Thank you! ENERGY Harikrishnan Tulsidas Economic Affairs Officer UNECE
Date 09 I 03 I 2017, Ranchi