Coalbed Methane CO2 Sequestration Project Mecsek Mts Hungary

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1 Coalbed Methane CO2 Sequestration Project Mecsek Mts Hungary ROTAQUA KFT UNIVERSITY OF MISKOLC Janos Foldessy University of Miskolc, Department of Geology and Mineral Resources Resources and Environment Coal and China Freiberg, Germany, March 2006.

2 Authors Istvan Lakatos Petroleum engineer Zoltan Nemedi-Varga Geologist Bela Fodor Mineral economist Janos Foldessy Geologist Tamas Csecsei Drilling

3 Carpathian Basin Mecsek

4 Geographical location

5 Exploration licence Licence valid /2009, prolongable until 2010 and 2011 Licence holder: Rotaqua KFT sq.km

6 Physical geography N PÉCS

7 Geology Tertiary cover Intrusives Hanging wall Footwall Coal

8 Geology 3D block N

9 Geological section

10 Structure

11 Coal mining history Largest hard coal resource of Hungary 1782 Mining starts 1960 Peak period - 4 M tonne/year 1990 Decline gradual closure of underground mines 2003 Last open pits close Reclamation of the mines, dumps

12 Mining - coalfields

13 Coal resource Composition and quality of the Mecsek coal Total Mine district moisture % Pécs-István 1,96 shaft Pécs-Vasas 1,74 Komló-Béta shaft 3,29 KomlóKossuth shaft 3,08 Ash % Volatiles% Sulfur, combustible Caloric value KJ/kg % 26,89 27,75 22,73 27,96 2,77 2, ,66 33,64 2, ,71 83,84 2, Vitrinite-reflection data Coal resource: Shaft 986 M tonne indicated 1,600 M tonne indicated+inferred 3,300 M tonne resource background Pécs - István 17,5 23,9 Pécs-Vasas Petőfi 24,6 33,0 Komló 28,3 35,7 Béta Komló Zobák 29,5 35,2 Komló Kossuth 31,0 35,0 Volatile % R % o 1,4 1,6 1,0 1,3 0,9 1,1 0,8 1,0 0,9 1,0

14 Coal Mine Methane Coalbed Methane - History 1894 First gas outbursts at Pecs, methane explosions, accidents start 1957 Pre-mining methane drainage introduced 1975 Start of using the gas for heating, 38 km collecting pipeline built 1980 First hole to test methane (V15) 1991 Geol Survey estimate: 112 BCM gas in-place Four holes, gas present, technological problems Hungarian-Canadian venture

15 Sorption characteristics of coal Langmuir parameters Pressure (Mpa) 2,46 4,01 Sample Pécs, Karolina open-pit Vasas open pit cc methane /g coal Dry with Moist As received Ash Free 18,26 19,32 23,16, 20,74 21,44 25,97 Ash Dry Free 24,89 27,08 Ash > 0,8 adsorption Free energy of the 0,6 0,4 0,2 Fk < 0, Equilibric pressure, MPa 5 6 Fa < > Coal/methane interface desorption 1,0 Unstable condition > Metastable equilibrium Internal structure of the coal Adsorbed methane, mol/kg 1,2 Internal structure of the coal coal - methane system 1,4 Stable equlibrium Fq Gas phase (pore space) > 7 Growing distance towards the edge of coal particle

16 Methane gas quality Methane : Carbon dioxide: Caloric value 95% 0.8% kj/kg GOB gas Gas trapped in abandoned stopes Estimated as 16 m3/t by tonned of extracted coal

17 Refined gas resource estimate 2005 In-place coal resource: tonne Sorbed and free gas: GOB gas: Total gas: Recovery coefficient Recoverable CBM gas: Recoverable GOB gas: Total recoverable gas: 3300 M 131,9 Bn m3 10,6 Bn m3 142,5 Bn m3 0,2 26,4 Bn m3 2,1 Bn m3 28,5 Bn m3

18 Lessons learnt from exploration Low permeability coal High stress environment High geothermal gradient liquid CO2 does not work Increased permeability zones should be searched

19 New exploration concept Geological target Coal types High permeability zones Technology Rotary Wireline core drilling Hole orientation Vertical Inclined Sampling Chips Core in canister Hole stimulation Liquid CO2 - gasified Methanol

20 Geological guides to better permeability Folded structure tensional and compressional zones High permeability tensional zones Igneous intrusions increasing coal rank, higher gas yield, fracturation Impervious hanging wall sedimentary cover

21 Coal maturation vitrinite reflection High coal rank volatile release: Anticline zones Near Igneous contacts Structural enhancement: Anticline axis Pre-tertiary faults Mechanical enhancement: Gob zones

22 Volatile content Vitrinite reflection Coal seams 1 Release of volatiles in igneous contact zones

23 Zones with favourable geology Fractured zone Anticline axis

24 Enhanced CBM CO2 injection Flue gas from Pécs Thermal Power Plant CO2 preferably adsorbs on coal desorbs methane N2 reduces CH4 partial pressure, provokes desorbtion CO2 sequestration produces ERU added value

25 The ten largest revorable gas resources of Hungary Algyő Hajdúszoboszló Pusztaföldvár Üllés Szank Szeghalom Nagykörű Mezősas Kisújszállás Lovászi Total 12,7 Bn m3 1,5 Bn m3 1,7 Bn m3 2,8 Bn m3 0,7 Bn m3 0,8 Bn m3 2,6 Bn m3 3,3 Bn m3 0,8 Bn m3 0,2 Bn m3 27,1 Bn m3

26 Mecsek Mountains

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