Posts Tagged ‘Methane’

Severstal to cut emissions making energy from waste methane

In addition to direct emissions from steelmaking, emissions from the extraction of raw materials also contribute to steel’s total carbon footprint. However, this also gives vertically integrated steelmakers the opportunity to invest in energy efficiency across the supply chain. One option is to produce power from mining waste gases, insuating the mining operation from volatile energy prices and reducing overall greenhouse gas emissions.

SBB 28 Sept Vorkutaugol, the coking coal mining division of Russian steelmaker Severstal, will start recycling methane gas collected from its Severnaya mine, processing it into heat and electricity at the 800m rouble ($25m) worth gas generating power plant it is preparing to commissioning in the first quarter of 2012, Steel Business Briefing learns from Vorkutaugol.

The 18 megawatt plant will cover 100% and 70% of electricity and heat energy needs at Severnaya. When fully operational, it will enable Vorkutaugol to reduce its emissions by 0.5m t/y in carbon dioxide equivalent, as well as to save up to 300m roubles/year, which may be diverted onto operational needs and other investments, SBB understands.

Based in Russia’s northwestern Komi republic, Vorkutaugol operates four mines: Severnaya, Vorkutinskaya, Zapolyarnaya and Komsomolskaya, and open pit Yunyaginsky. Their combined output is expected to amount to 8.5mt this year, as SBB previously reported.

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Ukrainian met coal miner starts selling Kyoto credits

For now, Ukraine seems to be running ahead of Russia in the JI metcoal, iron and steel sectors. But plenty of scope for Russia to catch up.

SBB 6 August 2010 Ukrainian coking coal producer, Krasnodonugol, part of the Metinvest group, has sold its first batch of Emission Reduction Units (ERUs) for €598,000 ($788,000). The buyer was Dutch bank, ING, Steel Business Briefing understands.

ERUs are granted under the Kyoto protocol to projects which reduce greenhouse gas emissions. One ERU is granted for a reduction equivalent to one tonne of carbon dioxide.

Krasnodonugol has reduced methane emissions from its Sukhodilska-Skhidna mine, one of seven it operates in the Luhansk region, by using it as a fuel for the boilers which are used to heat the mine and provide hot water. In total the project hopes to reduce emissions by 308,132t CO2-equivalent over 2008-2012.

The first batch of credits was received once emissions reductions for the period 2006-2008 were confirmed. The project still qualifies for further allocations for emissions reductions during 2009-2012.

Krasnodonugol is also undertaking a similar project at its Sukhodolska-Vostochnaya coal mine. It expects this to be operational by Q4 this year. Though this project has yet to be approved for under the Joint Implementation programme, the company hopes to achieve emissions reductions of some 200,000-250,000 tonnes CO2-equivalent from this project.

Ukraine is also host to a number of Joint Implementation projects related to the steel industry. These include three projects at Industrial Union of Donbass’s Alchevsk steel plant which have combined potential emission reductions of over 4.5m t CO2-equivalent, SBB notes.