1. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 1 Lifecycle Environmental Evaluation of Exploitation & CO 2 Sequestration of Coal by SAGISAKA M. Life Cycle Assessment Research Centre, National Institute of Advanced Industrial Science & Technology (AIST), JAPAN

2. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 2 Oil Bauxite Aluminum Iron Ore Coal Import Electric Power Generation Oil Refinery Electric Power Generation Iron Works Car Factory Plastic Materials What is LCA ? Recycling Solid Wastes

3. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 3 Source: Key World Energy Statistics 2005

4. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 4 COAL Scope of the Investigation COAL Exploration | Extraction | Transportation ● Energy: Electricity, Coal, Oils, CH 4, ･･･Energy: Electricity, Coal, Oils, CH 4, ･･･ Materials : Steel (supports, tracks, pipes, ･･･ )Materials : Steel (supports, tracks, pipes, ･･･ ) Cement, Timber, Plastics, ･････ Cement, Timber, Plastics, ･････ Equipment: Machines for Mining, Driving, Transportation, Separation, ･････Equipment: Machines for Mining, Driving, Transportation, Separation, ･････ Buildings: Offices, Houses, Rooms, ･････Buildings: Offices, Houses, Rooms, ･････

5. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 5 82 kg-CO 2 /t-coal in 1999 (3.4 g-CO 2 /MJ-coal)

6. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 6 Consumed energies for COAL production in Japan Consumed energies for COAL production in Japan FY1999Item Consumed quantity Per ton of shipped clean coal produced Commercial elec. 252 252GWh 42.0 42.0kWh/t Kerosene 29 29 klklklkl 0.00483 0.00483 l / t Light oil 10363kl 1.73 1.73 l / t Heavy oil 1160 1160 klklklkl 0.193 0.193 l / t Coal160 k t 26.6 26.6kg/t Powder coal 68.2 k t 11.4 11.4kg/t Methane5.4 Mm 3 0.899 0.899 m 3 /t Explosives 476 476t 79.3 79.3g/t Domesticelec.* 273 273GWh 45.5 45.5kWh/t *Used energies(coal, powder coal and heavy oil) for domestic energy production are included in each item.

7. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 7 Consumed materials for coal production in Japan Consumed materials for coal production in Japan FY1999 Steel 23.2 23.2 k t 3.8628kg/t Timber 33900 33900 m3m3m3m30.00564 m 3 /t Cement 11688.9 11688.9t2.18kg/t Sand 39570.8 39570.8t7.38kg/t Fly ash 16782.7 16782.7t3.13kg/tItem Consumed quantity Per ton of shipped clean coal produced Kerosene 75.1 75.1 klklklkl0.014 l/t Plastics (ABS) 16.1 16.1 kgkgkgkg 0.003 g/t

8. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 8 Inventory Analysis (Example)

9. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 9 Foreground Data Fuels Back ground Data Electricity Mining Disposal Manufacturing Use Materials, Fuels, etc. Transparency, Impartiality, Consistency, ….. International Data Sharing

10. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 10 International LCA Network ex. Data Sharing

11. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 11 Elec. Generation Separation CO 2 +Air CO 2 Air Transportation CO 2 Sequestration & CH 4 Recovery CO 2 CH 4 Transportation ECBMR - Environmental & Economical Possibility -

12. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 12 Chikuho C.F. Power Plants ; Coal ; LNG ; Oil China Korea Pacific Ocean Siberia Sakhalin (Russia) Industrial Boilers Chikuho Coal Field CO 2 Supply & CBM (CH 4 ) Demand

13. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 13 ECBMR - Environmental & Economical Possibility - CBM Production METSIM2 （ by Imperial College, UK ） Field Chikuho Coal Field Area 10km(E-W)×30km(N-S) Injection Well 5 spot Injection pattern Production Well interval Extraction up to CO 2 <10%

14. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 14 Interval=10km 5km 2km 1km CO 2 Sequestration & CBM production - Injection rate 585 ｔ - CO 2 /h - Well interval 2km

15. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 15 Lifecycle CO 2 Emission CO 2 Emission (g-CO 2 /MJ) Capital Separation0.012 Transportation0.0108 Drilling1.244 Recovery0.016 Sub total 1.3 Operation Separation0.557 Transportation3.9 Drilling0.073 Recovery0.675 Sub total 5.2 Total6.5 Sequestration -99 7.8 ｇ -CO 2 /MJ (imported LNG) Balance: -100 ｇ -CO 2 /MJ CBM Production + 6.5 CO2 Sequestration - 99 LNG (avoided) - 7.8

16. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 16 Cost Analysis Item Item Separation4,759 Transportation13,849 Drilling11,257 CBM Production 2,374 Total32,239 Item ItemSeparation11,700 Transportation8,670 CBM Production 292 Total20,662 Capital （ million JYN ） Operation （ million JYN ） Revenue: CBM Price = imported LNG (average ’91-’00) excl. sequestrated CO 2 CBM Price = imported LNG (average ’91-’00) excl. sequestrated CO 2 + Costs for Labour, Management, Tax

17. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 17 Financial Analysis

18. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 18 LCA for Mining ex. coal Exploration Development ProductionTransportationCombustion Waste Treatment Closure Service ､ Benefit Environmental Impact Profit or Total Sales LCIA Coal Mine Eco-Efficiency of a Mine

19. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 19 Exploration Development Production Closure Benefit Environmental Impact Profit or Total Sales LCIA Mine Eco-Efficiency of a Mine 1.CBM Extraction from Virgin Coal Seam 2.Coal + CBM Extraction 3.ECBMR from Deep Seam and/or Abandoned Mine LCA for Mining ex. coal

20. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 20 Environmental Performance Environmental Performance Social Performance Economic Performance Mining Operations Safety Employment Social Development Profit Tax Investment Dust Noise, Vibration Water Treatment ……. Triple Bottom Line for Sustainable Development Global Environment ……… Culture Poverty, Peace Human Rights ….. International Cooperation Methodology Methodology Data Sharing Data Sharing

21. Research Centre for Life Cycle Assessment National Institute of Advanced Industrial Science & Technology 21 Lifecycle Environmental Evaluation of Exploitation & CO 2 Sequestration of Coal by SAGISAKA M. Life Cycle Assessment Research Centre, National Institute of Advanced Industrial Science & Technology (AIST), JAPAN