1. CODATA 2006 Session B9 Clean Energy Recovery from Coal Objectives: Negative public feeling against Coal due to large CO 2 and other pollutants emission compared to other fossil fuels. However, new technology is developed, to use coal clean and to recover clean energy from coal seam. Demonstrate the recent trend and relevant data in this field.

2. CODATA 2006 Session B9 Clean Energy Recovery from Coal How to use coal clean Gaseous fuel: Gasification (surface, underground) Coalbed methane production Liquid fuel: Liquefaction 4 Presentations: Coalbed methane (CBM) Underground coal gasification (UCG) Enhanced coalbed methane recovery LCA of total coal energy system

3. Coalbed Methane as a Clean Energy Resources - Asian Prospects - 20th CODATA Conference October 23, 2006 Beijing Sohei SHIMADA Dept. of Environment Systems, The University of Tokyo

4. Outline of Presentation What is CBM? CBM and CMM World CBM Resources Recent Production Technology Recent Utilization Technology Asian Prospects China / India /Indonesia Conclusion

5. CBM ： Coalbed Methane Methane generated during the coalfication process and stored in coal seam. Originally the term “ CBM ” was used in Gas Industry as one kind of Natural Gas. There is another concept in Mining Industry for draining coal mine gases to hold the mine safety. CBM is a rather new energy resources (1980s). GHG with 21 times GWP more than CO 2.

6. US CBM Production and Reserves

7. CAG: Coal Associated Gas CBM: Coalbed Methane includes pre-mining drainage via virgin CBM wells > 1 year before mining CMG: Coal Mine Gas CMM: Coal Mine Methane including pre-mining drainage via virgin CBM wells < 1 year before mined through, in-mine drainage and gob (goaf) wells AMM: Abandoned Mine Methane VAM: Ventilation Air Methane Classification of Coalbed Methane (proposed by UN ECE)

8. World CBM Resources CBM Resources ( x 10 12 m 3 ) CBM Resources ( x 10 12 m 3 ) Russia17 – 113Poland3 Canada6 – 76UK2 China30 – 35Ukraine2 Australia8 – 14Kazakhstan1 USA11India<1 Germany3South Africa<1 TOTAL84 - 262 Source: IEA CR/76 (1995)

9. CBM Production (Arkoma Basin)

10. Gas Drainage System in Taiheiyo Coal Mine

11. Gas Recovery System used in Tiefa Coal Mine

12. Recent CBM Production Technology Horizontal wells Enhanced coalbed methane recovery

13. CDX Gas: Z-Pinnate Drilling and Completion Technology (Pinnate Technology) In order to make the drilling of horizontal wells stable, pressure in the wells are controlled by injecting air. (Dual Well System with Air Injection)

14. Sectional View of Pinnacle System

16. Enhanced Coalbed Methane Recovery Production enhancement by CO 2 and/or N 2 injection. Effective for the low permeability coal. CO 2 injection: production enhancement by CH 4 /CO 2 displacement (competitive adsorption) N 2 injection: production enhancement by decreasing CH 4 concentration in pore (stripping effect). Need of gas (CH 4 /CO 2 /N 2 ) separation before injection or after production. Separation cost is expensive.

17. World Geological CO 2 Storage Sites ECBMR

18. ECBMR Project Site (San Juan Basin)

19. Recent CBM Utilization Technology and R&D Replacement of natural gas Town gas, Industrial boilers Power generation Gas turbine, Gas engine, Co-combustion, Fuel cell Oxidation/heat production Vocsidizer (MEGTEC system) Chemical feed stock Hydrogen production

22. Power Generation using CMM at Shizhuang

23. Fuel Cell Power Plant using CMM

24. Asian Prospects for CBM China Indo Indonesia

25. Coal Reserves and Production ChinaIndiaIndonesia Coal Reserves (million tons) (2003) 114,502 ( 12.6%) (3) 92,447 (10.2%) (4) 4,968 (0.5%) (16) Coal Production (million tons) (2003) 1,670.1 (39.0%) (1) 353.6 (8.3%) (3) 115.3 (2.7%) (7) CMM Emission (MMt CO2 e) (2000) 171.8 (1) 10.1 (8) 3.4 (13) Source: EPA (M2M)

27. CBM Resources in China Resources: 36.81 trillion m 3 (depth up to 2,000m) Recoverable resources: 10.87 trillion m 3 Proved reserves (by government):102 billion m 3 Recoverable reserves: 47 billion m 3

28. CBM Production in China 8 CBM pilot production projects 615 CBM wells (including 7 multi-lateral wells) (as of end of 2005) CBM production in 2005: 100 million m 3

29. Prospects of CBM Production 10 billion m 3 production in 2010 (5 billion m 3 from surface wells, 5 billion m 3 from gas drainage wells) Increase CBM proved reserves up to 300 billion m 3 CBM production in 2005: 100 million m 3 Investment by CBM industry: RMB 30 billion

30. Prospects of CBM Production CMM: increase utilization rate from 30% to 50% Combination of underground gas drainage with surface gas production Build 9 new pipelines with a total length of 1,390 km (RMB 29.5 billion)

31. Prospects of CBM Production YearAnnual CBM Production (billion m3) 20060.1 – 0.2 20101.5 – 2.0 20155 – 10 202035

32. China ’ s CMM Emission (million m3) YearCMM Emission CMM Drainage CMM Utilized 20009,630870318.4 2001-980458.28 20029,8711,150455.67 200311,6741,521629.21 200413,5351,866- Source: US EPA(M2M)

33. Example of CMM Projects ProjectCapacityInvestment, million Yen IRR % Project time, years Huaibei CMM residential use 4,000 million m 3 /y163.95228 CMM power generation 3 MW17.00364 Jiaozuo CMM residential use 2,000 million m 3 /y74.00228 CMM surface development 1,000 million m 3 /y200.00238 Pingdingshan CMM power generation 6,000 million m 3 /y36.20237 CMM surface development 9,000 million m 3 /y2,000,0001812

34. India’s CBM Field and Resources

35. Indonesia’s Coal Fields

36. ProvinceBASIN RESOURCES ( Tcf ) SumatraSouth Sumatra183.0 KalimantanBarito101.6 KalimantanKutai80.4 SumatraCentral Sumatra52.5 KalimantanNorth Tarakan17.5 KalimantanBerau8.4 SumatraBengkulu3.6 KalimantanPasir / Asem3.0 Sulawesi 2.0 JavaNW Java0.8 SumatraBengkulu0.5 TOTAL453 CBM Resources of Indonesia Advanced Resources International, Inc (ARI) “Indonesia Coalbed Methane, Task 1 – Resource Assessment”, March 17, 2003 = 12.2 Tm 3

37. Conclusion CBM: Promising new Natural Gas Resources CMM: Possible local energy source and large potential to decrease GHG emission CMM: New source of environment business (CDM etc.) Technology development in production and utilization can make the potential larger. Need to establish the reliable CBM reserves evaluation method.

38. Conclusion (Asian Prospects) China: Firm governmental target on CBM production and utilization China: Already active in CMM recovery and use with international funding India: Exploring stage of CBM Field. Almost no utilization of CMM Indonesia: Great interests in CBM and trying to develop.

39. Thank you for your attention.

41. Power Generation using AMM in Akabira Coal Mine

42. China ’ s Coal Field

43. India’s Coal Field

44. CBM Potential in Indonesia