Economical utilization of coal bed methane emitted during exploitation of coal seams energetic and environmental aspects

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1 Economical utilization of coal bed methane emitted during exploitation of coal seams energetic and environmental aspects President of The Board mgr inż. Roman Łój Katowicki Holding Węglowy S.A.

2 Katowicki Holding Węglowy S.A. significant coal producer in Poland (UE) The share of KHW S.A. in hard coal extraction in Poland in 2012 year Extraction of hard coal in Poland in 2012 year. 2,57% ( % of share) 5,12% Kompania Węglowa 9,96% Jastrzębska Spółka Węglowa Katowicki Holding Węglowy 14,85% 50,27% LW Bogdanka Południowy Koncern Węglowy Pozostałe 17,23% 11,72% 17,48% Extraction of steam hard coal in Poland in 2012 year. ( % of share) 6,02% 6,28% 2,75% 55,75% Kompania Węglowa Katowicki Holding Węglowy LW Bogdanka Południowy Koncern Węglowy Jastrzębska Spółka Węglowa Pozostałe

3 MINES Structure of Katowice Capital Group KGK Katowicki Holding Węglowy SA Zakłady Energetyki Cieplnej KWK Murcki-Staszic Katowicki Węgiel KWK Mysłowice-Wesoła Spółka Szkoleniowa KWK Wieczorek, Spółka Mieszkaniowa KWK Wujek Common Services Center KWK Kazimierz-Juliusz Sp. z o.o.

4 KHW S.A. chosen economical and technical data (2012 year) Coal production: Coal export: Value of investments: Sales income: Employment: Coal bed methane sales income: 11,6 mil. tons 630 mil. tons 680 mil. PLN 3 807,6 mil. PLN ~ 17,5 ths. persons ~ 2,690 mil. PLN

5 KHW S.A. chosen economical and technical data (2012 year and 10 months of 2013 year) months 2013 Energetic use of methane in installations of ZEC S.A. 10,24 mil. m 3 15,4 mil. m 3 Thermal energy production from methane (ZEC S.A.): 183 ths. GJ 313 ths. GJ Electrical energy production from methane (ZEC S.A.): 21 GWh 39 GWh Economical effect of using electrical energy produced from methane in KHW S.A.: 690 ths. PLN 895 ths. PLN Reduction of emmission of CO 2 equivalent ~ 182 ths. tons ~ 260 ths. tons 5

6 Chosen coal bed methane data in mines of KHW S.A. (2012 year) Quantity of methane emitted during exploitation of coal seams: 131,28 mil. m 3 including: - emitted to the atmosphere (by ventilation): 108,89 mil. m 3 - captured in surface drainage stations: 22,39 mil. m 3 - energetically used in installation of Thermal Energy Plants: 10,24 mil.m 3 Reduction of emission to the atmosphere (equivalent of CO 2 ) ~ 182 ths. tons

7 The example of effective methane drainage of coal seam Present absolute metanovelty of wall 514 in seam 501 part Az - 35,51 m 3 /min Ventilation metanovelty - 10,80 m 3 /min Methane drainage - 24,71 m 3 /min Methane drainage efficiency for wall 514 region vary 50 70%. It is the best result in KHW S.A. and one of the best in polish deep hard coal mines. ŚCIANA 514 pokł. 501 partia Az KWK Mysłowice Wesoła : Methane drainage station Capture of methane - 41,30 m 3 /min Utilization of methane by energy production plants (ZEC) - 80% Długość ściany [m] Wysokość ściany [m] Śr. wydobycie [t/d] 225 do 3,8 m 3000

8 Management of coal bed methane captured in drainage stations Captured in drainage stations mine methane gas is and will be used by dependent company Zakłady Energetyki Cieplnej S.A. (Thermal Energy Plants) for production of electrical energy and heat (also for production of cold in future) with the environmental effect of reduction of greenhouse gases emmision to the atmosphere

9 Existing installations using coal bed methane ZEC S.A. division No. V Wieczorek 2 pcs 2 x 1,485 MWe 1,615 MWt Number of boilers 1 pc. Boiler type and power LOOS- 6MWt ZEC S.A. division No. IX Wesoła" 2 pcs 2 x 1,403 MWe 1,479 MWt Number of boilers 4 pcs. Boiler type and power WR-10-11,6 MWt WLM-5-5,8 MWt PWPg-06-0,7 MWt PWPg-06-0,7 MWt

10 Planned by ZEC S.A. in years investments developing network of installed gas engines with generators and gas boilers for energetic use of methane ZEC S.A. division No. VI - Wujek" ZEC S.A. division No. IX Wesoła" ZEC S.A. division No. XII Śląsk" ZEC S.A. division No. V Wieczorek ZEC S.A. division No. IV Murcki 2 pcs 3 pcs. 5 pcs 1 pc 2 pcs 2 x 1,48 MWe 2 x 2,68 MWe + 1,4 MWe 5 x 1,48 MWe + Quantity of boilers 1 pc Boiler power 6 MWth 1,48 MWe 2 x 1,48 MWe Quantity of boilers 1 pc Boiler power 6 MWth Total methane utilization: ~ 60 mil. m 3 /year It will cause reduction of greenhouse gases emission equivalent to ~ 1 mil tons of CO 2 /year

11 Thank You for Your attention