M2M Annual Report

Third Annual Report

The U.S. Government’s Methane to Markets

Partnership Accomplishments

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Contents

The Methane to Markets Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

U.S. Government Leadership in Reducing Methane Emissions . . . . . . . .9

Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Coal Mines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Landfills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Oil and Gas Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Looking Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

For additional information, please visit www.epa.gov/methanetomarketsand www.methanetomarkets.org.

Third Annual Report

The U.S. Government’s Methane to Markets

Partnership Accomplishments

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Climate change is a serious environmen-tal challenge that will require all coun-tries around the world to realize

significant reductions in greenhouse gases(GHGs). Methane, second only to carbon diox-ide in its importance as a GHG, is of particularimportance given its atmospheric propertiesand the suite of currently available, cost-effec-tive reduction options. As such, focusing miti-gation efforts on methane can yield near-termclimate benefits along with major economic, air quality, and energy benefits (see sidebar on page 3).

In 2004, the United States joined with 13 othercountries to focus global attention on the impor-tance of methane emissions by launching theMethane to Markets Partnership. Methane toMarkets is a multilateral initiative uniting publicand private interests to fight climate change byadvancing the recovery and use of methane as aclean energy source. By engaging public and pri-vate sector partners, this initiative brings togeth-er the technical and market expertise, financing,and technology necessary for methane captureand use project development.

The Methane to Markets Partnership

Methane to Markets Partner Countries account for more than 60 percent of the world’s anthropogenic methane emissions.

Argentina

Canada

China

Colombia

Ecuador

Australia

Brazil

Finland Nigeria

Germany

India

Japan

Kazakhstan

Mexico

Mongolia

Pakistan

Italy

United Kingdom

United States

of America

Vietnam

European Commission

Republic of Korea (South Korea)

Poland

Philippines

Russia

Ukraine

Thailand

U.S. Government’s Methane to Markets Partnership Accomplishments

The Partnership focuses on developing proj-ects in four major methane emissions sourceareas: agriculture, coal mines, landfills, and oiland gas systems. In each of these sectors, cost-effective methane emission reduction technolo-gies and practices are currently available tocapture and use the methane gas as a fuel forelectricity generation, onsite energy needs, oroffsite gas sales. However, despite the availabilityof proven technologies and the associated environmental and financial benefits, methanerecovery and use is not widespread. In manycountries, financial, institutional, informational,regulatory, and other barriers have impeded proj-ect development. The Partnership is working toidentify and address these barriers to combat cli-mate change and deliver clean energy to marketsall around the world.

Origins and Structure of the Methane toMarkets Partnership

The Methane to Markets Partnership is mod-eled on the United States’ suite of domesticmethane emission reduction programs. Since1993, the U.S. Environmental ProtectionAgency (EPA) has operated four highly success-ful public-private partnerships: AgSTAR, theCoalbed Methane Outreach Program (CMOP),the Landfill Methane Outreach Program(LMOP), and Natural Gas STAR. These pro-grams have engaged stakeholders, disseminat-ed information, and catalyzed partnerships toremove barriers to project development andachieve significant on-the-ground results formore than a decade. As of 2005, they havehelped to reduce annual U.S. methane emis-sions to 11 percent below 1990 levels.

Methane is a hydrocarbon and the primary compo-nent of natural gas. It is also a potent GHG that is morethan 20 times as effective at trapping heat in theatmosphere as carbon dioxide (CO2). Methane has amuch shorter atmospheric lifetime than CO2 (about 12years, compared to about 200 years for CO2).

As a result, reducing methane emissions can achievesignificant near-term climate, energy, and economicbenefits. Identifying and capitalizing on cost-effectiveopportunities to reduce methane emissions lowers thecost of GHG abatement over the long term and allowstime for the development of alternative technologies.Also, studies indicate that feasible reductions inmethane and other non-CO2 GHG emissions can helpslow global warming over the next 50 years on thesame scale as similar reductions in CO2 emissions. Inaddition, methane contributes to the growing globalbackground concentration of tropospheric ozone, agreenhouse gas and an air pollutant associated withpremature mortality. Thus, reducing methane emis-sions decreases surface ozone everywhere, yielding

additional climate benefits as well as improvement inlocal air quality.

Methane accounts for 16 percent of all GHG emissionsglobally, with about 60 percent of these emissionscoming from anthropogenic (human-related) activities.

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Enteric Fermentation (30%)

Rice (10%)

Other Ag (7%)

Oil and Gas (18%)

Coal (6%)

Source: Global Anthropogenic Emissions of Non-CO2

Greenhouse Gases, 1990-2020 (EPA Report 430-R-06-003)

Landfills (12%)

Manure (4%)

Waste Water (9%)

Fuel Stationary and Mobile (1%)

Biomass Combustion (3%)

Estimated Global Anthropogenic

Methane Emissions by Source, 2005

Why Is Methane Important?

Using a similar approach, Methane toMarkets brings together industry, nongovern-mental organizations (NGOs), national govern-ments, and other stakeholders to advanceproject development around the world. ThePartnership is structured around the SteeringCommittee, the Administrative Support Group (ASG), four subcommittees, and theProject Network (see Figure 1). The SteeringCommittee guides the work of the Partnershipand is supported by the ASG, or secretariat,which is currently housed at EPA. The subcom-mittees (Agriculture, Coal Mines, Landfills, andOil and Gas Systems) are responsible for thetechnical work in each of the Partnership’s targetsectors. Each subcommittee operates as a part-nership of government representatives and theProject Network. The Project Network is anengaged community of industry, nonprofit organ-izations, international financial institutions, andother expert stakeholders who actively partici-pate in meetings and activities as a means ofbuilding capacity, transferring technology, andpromoting private investment.

The Project Network: Bringing Expertise toInternational Project Development

The Project Network plays a vital role in thefinancing, development, and operation ofmethane capture and use projects. TheMethane to Markets Partnership established theProject Network to ensure that national govern-ments pursuing methane emission reductionswould be able to leverage the project develop-ment knowledge, experience, and resources ofthese critical stakeholders around the world.

Today hundreds of individuals and organiza-tions participate in the Project Network fromcountries in Africa, Asia, Australia, Europe, NorthAmerica, and South America. These diverseorganizations (see Figure 2) identify and imple-ment cost-effective methane recovery and useprojects globally; address the informational, tech-nical, and institutional barriers to project devel-opment; and contribute to capacity-building andtechnology transfer activities. At the same time,these organizations can increase profits, expandtheir businesses, distinguish themselves in themarketplace, and more successfully achieve theirstrategic goals—all while helping to address thecritical issue of climate change.

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Steering Committee

AdministrativeSupport Group

Coal Mines Subcommittee

Oil & Gas Subcommittee

Landfill GasSubcommittee

AgricultureSubcommittee

Project Network

Researchers (10%)

PrivateSector (69%)

NongovernmentalOrganizations (14%)

Local, Regional, andOther GovernmentalOrganizations (4%)

FinancialInstitutions (3%)

Figure 2

Project Network Members Represent a

Diversity of Organizations

Figure 1

Methane to Markets

Organizational Structure


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Active participation by the Project Network iscritical to the success of the Partnership, andfacilitating Project Network member involvementis a top priority for the Partnership. Methane toMarkets invites and encourages Project Networkmembers to participate in as many of thePartnership-sponsored meetings, events, and activities as possible.

Growth of the Partnership

The Methane to Markets Partnership hasgrown in size, scope, and influence. Since 2004,the Partnership has:

• EExxppaannddeedd ffrroomm 1144 iinniittiiaall PPaarrttnneerr CCoouunnttrriieess ttoo2277 including the European Commission, withFinland, Kazakhstan, Mongolia, Pakistan, thePhilippines, and Thailand being the mostrecent additions in 2008. Together, these 27Partners represent more than 60 percent ofthe world’s anthropogenic methane emissions.

• RReeccrruuiitteedd mmoorree tthhaann 880000 PPrroojjeecctt NNeettwwoorrkkmmeemmbbeerrss from around the world, includingsome of the most well-respected financialinstitutions, NGOs, manufacturers, projectdevelopers, and consultants in the industry.

• AAddddeedd aaggrriiccuullttuurree aass aa ffoouurrtthh sseeccttoorr,, creatinga subcommittee to focus on facilitatingmethane recovery and use projects for live-stock waste and manure management sys-tems to start. (The Partnership is currentlyexpanding into other agricultural wastesources.)

• TTrraacckkeedd tthhee ddeevveellooppmmeenntt ooff mmoorree tthhaann 114400mmeetthhaannee eemmiissssiioonn rreedduuccttiioonn pprroojjeeccttss inMethane to Markets Partner Countriesaround the world.

• HHeelldd 4411 eevveennttss iinn 1133 ccoouunnttrriieess,, bringingtogether methane professionals from a broadrange of technical disciplines, countries, andsector interests to share experiences and bestpractices.

• OOrrggaanniizzeedd tthhee ffiirrsstt PPaarrttnneerrsshhiipp EExxppoo,, inBeijing, China, in 2007. The Expo broughttogether more than 700 members of theinternational methane community and showcased over 90 potential methane cap-ture and use projects from around the world(see Partnership Expo sidebar on page 6).The event’s success has resulted in thePartners planning a second Partnership Expoto be held in India in 2010.

Dismantling Barriers and Advancing ProjectDevelopment

The success of the Methane to MarketsPartnership Expo and the growth of thePartnership demonstrate the continued successof Partner Countries and Project Network mem-bers in removing barriers and advancingmethane recovery and use projects around theworld. Through the Partnership's subcommittees,both public and private sector partners have suc-cessfully developed comprehensive Action Plansfor each target methane sector along with coun-try-specific strategic plans to better identify spe-cific barriers to project development within eachcountry. These plans have already guided thedevelopment of over 140 projects and activitiesaimed at delivering near-term methane emis-sions reductions through training and capacitybuilding, technology demonstration, marketdevelopment, and direct project developmentsupport.

Perhaps one of the most important barriersthat the Partnership is effectively addressingacross all projects and methane sectors is over-coming informational and technology barriers.Methane to Markets has developed a wide arrayof tools and services that provide accurate andtargeted information to the internationalmethane community, helping to catalyze projectdevelopment. All of these tools, which are madewidely accessible through the Methane toMarkets Web site (see sidebar on page 7),

2007 Methane to Markets Partnership Expo

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Methane to Markets Convenes World’sLargest Gathering of Methane Experts

In October 2007, the Methane to MarketsPartnership convened the world’s largest gather-ing of methane professionals in Beijing, China.

Together with China’s National Development andReform Commission (NDRC), EPA co-hosted this three-day event, which brought together investment, proj-ect development, and government professionals tonetwork and collaborate on advancing new methanecapture and use projects. In all, the Expo attractedmore than 700 attendees from 34 countries and morethan 20 corporate sponsors from a cross-section ofindustries and trades. These sponsors included turbineand equipment manufacturers, alternative energycompanies, investment banks, project developers, andconsulting firms.

The Expo featured concurrent technical tracks forthe agriculture, coal mines, landfill, and oil and gassystems sectors. For each track, breakout sessionsgave attendees the opportunity to review and dis-cuss case studies of methane projects, technologicaladvances, financing, and country-specific policy andregulatory barriers and solutions. The Methane toMarkets Steering Committee and subcommitteesalso met in conjunction with the Expo to discuss theimplementation of sector-specific subcommitteeaction plans and other Partnership business.

One of the most significant aspects of the PartnershipExpo was the Project Showcase, at which projectdevelopers and other parties highlighted potentialprojects in need of funding and/or technical assistanceto move forward. Ninety-one potential methane cap-ture and use projects from 11 countries across all fourMethane to Markets sectors were showcased (seeFigure 3). The United States provided key technical orfinancial support to more than a third of these proj-ects. If fully implemented, these 91 projects are esti-mated to yield annual methane emission reductions of 11.5 million metric tons of carbon dioxide equiva-lent (MMTCO2E) by 2015.

The Expo’s proceedings also featured presentationsand round table discussions on issues relevant to international methane project development. Openingremarks were delivered by Xie Zhenhua, Vice Ministerof China’s NDRC, and Clark T. Randt, Jr., U.S. Ambas-sador to the People’s Republic of China. “China facesarduous tasks in dealing with climate change but thepotential for reducing greenhouse gases is tremen-dous, and so are business opportunities,” said Xie, whois also the Deputy Director of the National LeadingGroup of Work Responding to Climate Change. BinduLohani, Vice President of the Asian Development Bank(ADB), gave the keynote speech (“Importance ofMethane Projects in Global Carbon Markets and as aSource of Clean Energy”), while John Beale, DeputyAssistant Administrator of EPA and Co-Chair of thePartnership Steering Committee, spoke about some of the Partnership’s recent accomplishments.

Colombia4 (4%)

Ecuador5 (5%)

Mexico20 (22%)

China22 (24%)

Brazil15 (16%)

Argentina8 (9%)

United States1 (1%)

Ukraine7 (8%)

Nigeria2 (2%)

Russia2 (2%)

India5 (5%)

Figure 3

Projects Showcased at 2007

Partnership Expo by Country


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provide critical data and information on projectopportunities and technologies. Some of thesetools include:

• PPrroojjeecctt TTrraacckkiinngg DDaattaabbaassee. This databaseallows users to submit information forongoing or proposed methane capture anduse projects. For each project submitted,the database contains information such asa project description, anticipated benefitsand outcomes, estimated annual GHG emis-sion reductions, and primary contacts. Thedatabase is intended to connect a variety ofstakeholders and to help promote thedevelopment of new projects. It containsinformation on more than 100 ongoing and40 proposed projects.

• IInntteerrnnaattiioonnaall LLaannddffiillll DDaattaabbaassee.. Developedby EPA to facilitate the development oflandfill gas energy projects, this databasehelps those looking to advance methanecapture and use projects from internationallandfills. It houses key data for projectdevelopment, including landfill location andcontact information, landfill physical char-acteristics, gas collection system character-

istics, waste characteristics, and landfilloperations. Launched in September 2007,the database stores information from morethan 250 landfills around the world.

• IInntteerrnnaattiioonnaall CCooaall MMiinnee MMeetthhaannee PPrroojjeeccttssDDaattaabbaassee.. This database, designed by EPA,stores critical data for coal mine methane(CMM) projects such as a mine’s name andlocation, physical characteristics, type ofmethane drainage system, thermal and elec-tric capacity, annual GHG emissions avoidedper year, and contact information. It containsinformation on more than 215 CMM recoveryand utilization projects that are operating, indevelopment, or planned in 13 countries.

• CCooaall MMiinnee MMeetthhaannee TTeecchhnnoollooggyy DDaattaabbaassee..Compiled by Australia’s Department ofTourism, Industry, and Resources, this data-base provides information, contacts, andcase studies for a range of CMM recoveryand utilization technologies. It containsinformation on a number of different tech-nologies relating to methane combustion,drainage gas purification for pipeline or towngas, ventilation air methane (VAM) mitiga-

The Methane to Markets Web site features easy-to-usenavigation bars to provide quick access to country-specific resources, Partnership administrative informa-tion, records of Partnership meetings and activities,and online applications to join as a Partner Countryor a Project Network member. The Web site alsohouses:

• Pages for the Partnership’s four sectors (agriculture,coal mines, landfills, and oil and gas systems) thatcontain all relevant sector information andresources.

• Documents and resources, including fundingopportunities, fact sheets, news, information on theSteering Committee, and relevant links.

• Project Network member information, searchable by geographic area of interest and description ofservices.

www.methanetomarkets.org

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tion and utilization via thermal oxidation,VAM mitigation and utilization via catalyticoxidation, enriching diluted methane, andmeasuring and monitoring methane. It alsoincludes case studies that cover drilling,methane combustion, and VAM mitigationand utilization via thermal oxidation.

• OONN TTIIMMEE.. The government of Canadadeveloped this new online tool to providepolicymakers, project developers, finan-ciers, and other important stakeholderseasy-to-access, credible information oncost-effective technologies and practicesthat reduce methane emissions in the oiland gas sector (see Figure 4). The tool dis-plays interactive flow diagrams of the oiland gas industry, allowing users to navigateamong different industry processes, fromthe extraction of oil and gas to its marketdelivery.

Partnership Efforts Are Yielding Results

The Partnership expects to achieve signifi-cant economic, environmental, and energybenefits. The United States estimates that

within 10 years, the Partnership has the poten-tial to deliver estimated annual reductions inmethane emissions of more than 180MMTCO2E. This is the equivalent of recoveringmore than 760 billion cubic feet of natural gas,the annual emissions from 50 million cars, orthe annual emissions from 76 500-megawatt(MW) coal-fired power plants. If achieved, thesereductions could lead to stabilized or evendeclining levels of global atmospheric concen-trations of methane.

A forthcoming report, The Methane toMarkets Partnership Accomplishments Report,will be published before the 2010 PartnershipExpo. It will summarize the collective accom-plishments of the Partnership and its globalimpact since inception.

"The Methane to Markets effort is an excellentexample of a public-private partnership that iscombining the best from both government andindustry."

Neil Hirst, DirectorInternational Energy AgencyNovember 2007

Figure 4

This flow diagram from ON TIME shows the “Oil Well” drop-down menu. Users click on the different menus to accessadditional information on oil well-related activities.

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In support of the Methane to MarketsPartnership, the United States has pledgedup to $53 million over a five-year period to

facilitate the development and implementationof methane projects in developing countries andcountries with economies in transition. As thisfunding is committed, it is supporting a broadrange of efforts through the Partnership, such asthe export of the successful U.S. voluntary pro-grams, training and capacity-building, marketdevelopment, feasibility assessments, and tech-nology demonstrations. Leveraging the efforts offellow Partner Countries along with the expertiseand investment of the United States and theinternational private sector is central to the U.S.commitment.

U.S. government contributions were critical in making 2007 the most successful year of thePartnership to date. U.S. government funding for the Partnership in fiscal year (FY) 2007 was$10.2 million, bringing the total U.S. financialcommitment to the Partnership since its incep-tion to $28.5 million (see Figure 5). Theseresources continued supporting pre-feasibilityand feasibility studies at potential project sites,while addressing market, institutional, and otherbarriers to project development and buildingcapacity through technology transfer and training

U.S. Government Leadership in

Reducing Methane Emissions

EPA Grants for Methane Projects

The United States, for the second year, held agrants competition to support projects that identify, characterize, or implement methane cap-ture and use opportunities in developing countriesor countries with economies in transition that areMethane to Markets Partners. Institutions from 16 Partner Countries submitted more than 80 proposals, seeking a combined $35 million inproject support. After reviewing all the submis-sions, EPA awarded more than $4.5 million to 20applicants from Argentina, Brazil, China, Ecuador,India, Korea, Mexico, Mongolia, Nigeria, Poland,Thailand, and Ukraine. These awards build signifi-cantly on the solicitation from last year, in which$2.9 million was awarded to applicants from 11Partner Countries to fund nearly 30 proposals. EPA’sWeb site (www.epa.gov/methanetomarkets)provides more details on this program and othermethane-related activities.

Fund

ing

(in m

illio

ns)

Ann

ual R

educ

tion

Pote

ntia

l of

U.S

.-Sup

por

ted

Proj

ects

(MM

TCO

2E)

Year200720062005

$0

$10

$20

$30

$40

$50

0

5

10

15

20

25

Annual Reduction PotentialFunding

Figure 5

U.S. Government Funding for Methane to

Markets and Annual Reduction Potential,

2005–2007

EPA is the lead U.S. agency and, as host of theAdministrative Support Group, coordinatesand administers Partnership activities bothdomestically and internationally. EPA builds onthe success of its voluntary methane reductionprograms, which have been instrumental inreducing U.S. methane emissions in 2005 bymore than 11 percent below 1990 levels.

A Multi-Agency Effort

U.S. government efforts under the Methane to Markets Partnership are led by EPA and involve the collective efforts of the following major agencies and departments of the federal government:

U.S. Agency for International Development

(USAID) provides technical expertise in theeconomic reform of energy sectors to createmarkets that support private sector projects indeveloping countries and those witheconomies in transition.

U.S. Department of Agriculture lendstechnical expertise in the animal wastemanagement sector.

U.S. Department of Energy contributesexpertise in natural gas and CMM technologies.

U.S. Department of State leads internationalclimate change policies and activities and sup-ports the development of methane projects.

U.S. Trade and Development Agency

facilitates development in emerging markets by promoting U.S. partnerships inhigh-priority overseas projects.

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(see Figure 6). The United States expends theseresources across more than a dozen PartnerCountries and regions (see Figure 7). Theseefforts are directly leading to the development offull-scale projects in many Partner Countries.

When fully implemented, these projects willdeliver estimated annual emission reductions ofmore than 24 MMTCO2E. This is nearly triple theresults from activities undertaken in 2006.

United States1%

Nigeria1%

Korea1%

Argentina3%

Ecuador3%

Ukraine9%

Poland6%

Russia4%Philippines

1%

Mongolia2%

Mexico14%

Kyrgyz Republic (non-partner)

1%India10%

China23%

Colombia2%

Brazil5%

Global/Regional15%

Figure 7

FY 2007 U.S. Expenditures by Recipient Country

General Partnership Support 17%

Technology Demonstration

and Deployment17%

Market Development and Finance

4%

Training and Capacity Building

30%

Project Development

and Implementation

33%

Figure 6

FY 2007 U.S. Expenditures by Type of Activity

U.S. government expenditures continue toleverage funding from other sources (see Figure8). For example, EPA awarded the Thai Ministryof Agriculture a grant for $700,000 to reducemethane from swine farms. This grant is lever-aging $7 million from the World Bank to deploylarge-scale anaerobic digesters.

Most importantly, the Methane to MarketsPartnership continues to deliver near-termresults in addressing the global challenge of climate change and clean energy develop-ment. By conducting technology transfer,improving local capacity, and marketingproject opportunities across borders and sec-tors, the Partnership is developing local,

clean energy resources while reducing GHG emissions.

The following sector-specific updates pro-vide a brief overview of some of the mostnotable U.S.-government-sponsored activitiesin the Partnership’s four sectors that were fund-ed in 2007.

EPA also maintains wwwwww..eeppaa..ggoovv//mmeetthhaanneettoommaarrkkeettss, which details contributionsand responsibilities of the six major federalagencies involved in the Partnership. The Website also features basic information on methanecapture and use, related EPA voluntary pro-grams, and links to Partnership newsletters andpress releases.

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$271.5

$28.5

Million

Figure 8

* Leveraged funds include financial support provided for activities by non-U.S. government entities including other nationalgovernments or Project Network members. They also include project investment through loans or other financing instruments.

U.S. Government Funding and Leveraged Funding*

FY 2005–FY 2007

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Globally, agricultural sources of methaneemissions include enteric fermentation,rice planting, and livestock manure.

Methane to Markets’ agriculture activities focuson methane emissions from livestock and foodprocessing wastes, though the AgricultureSubcommittee is exploring opportunities toexpand to other methane sources. The methaneproduced and emitted during the anaerobicdecomposition of livestock and food processingwastes can be reduced, captured, and used asclean energy with the implementation of anaero-bic digestion technology.

In 2005, the global total amount of methanefrom livestock manure that could be used in thismanner was estimated to be slightly more than230 MMTCO2E. In this reporting year, the U.S.government spent more than $1.5 million in sup-port of activities through the Methane to MarketsPartnership to help advance the recovery and useof methane at livestock manure managementoperations. Highlights of these and other activi-ties are presented below.

Thailand is working with EPA to reducemethane from swine farms in three provincesnear Bangkok. With support from the WorldBank’s Global Environmental Facility andThailand’s Department of Livestock Develop-ment and Energy Policy and Planning Office, 12swine farms, raising nearly 200,000 pigs, aretransitioning from open lagoons to anaerobicdigestion systems that will generate electricpower. With technical support from EPA, projectengineers are expecting the project to reduceannual methane emissions by more than 90,000

metric tons of carbon dioxide equivalent(MTCO2E). Participating farmers will benefitfrom the project by using the methane as a localenergy resource and the dried digestive sludgeas a crop fertilizer.

Partnering with the World Bank to ImproveLivestock Waste Management in Southeast Asia

EPA and the World Bank have been support-ing livestock waste management projects inSoutheast Asia since 2004. The World Bank hasprovided $21 million to develop affordable pollu-tion control methods for livestock waste man-agement in China, Thailand, and Vietnam, whileEPA has provided technical assistance necessaryto implement these projects. Through thedeployment of anaerobic digestion technologies,the program mitigates water pollution from con-fined swine production and promotes institu-tional capacity-building and policy developmentand implementation. In addition, the programincludes support for pollution reduction quantifi-cation. To date, two methane recovery systemsare operational and six are under construction,with approximately 100 more in planning. Eachof these projects features systems designed totreat swine waste and recover methane (as bio-gas) for use as energy. For large operations,engine generators will be installed to produceelectricity and have back-up flares. Smallerfarms and village systems will produce biogasprimarily for use as cooking fuel. These projectsare estimated to achieve methane reductions of500,000 MTCO2E.

Agriculture

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Bringing Anaerobic Digesters to Rural China

EPA is partnering with the Chinese Ministryof Agriculture on a number of initiatives toexpand the use of improved village-scaledigesters and technical training in rural areas. Amarket assessment of methane recovery anduse opportunities in the livestock and agro-industrial waste sector is also underway insouthern China, with an expected demonstra-tion component to follow for medium and largefarms. Similar efforts are also scheduled forVietnam, the Philippines, Thailand, and Korea.

Transforming Distillery and Winery Wastes in India

In India, EPA is facilitating the deployment ofanaerobic digesters in the dairy sector by sup-porting market assessment of digester opportu-nities, identification of commercially proven andaffordable technologies, targeted technicaldemonstration, education and extension, and

policies that promote the adoption of appropriateanaerobic digester technologies. In the pastthese efforts have focused both on small-scaleoperations (in order to offset cooking fuel use)and commercial-scale dairy and creamery opera-tions (from which the methane can be used togenerate electricity). In 2007, EPA and its Indianpartners expanded their work to include wastesfrom the distillery and winery sectors.

Expanding Demonstration Programs in Mexico

While much animal waste from large agri-cultural operations is managed in lagoons,there are also manure storages, or instanceswhere manure is discharged directly into sur-face waters in Mexico. EPA and USAID havebeen working throughout Mexico to demon-strate methane capture and use from livestockwaste management systems by implementingtechnology transfer mechanisms and demon-stration projects, strengthening the capacity oflocal institutions, and developing policies thatnurture the methane capture industry andreduce surface water–related pollution.

For example, over the past two years EPA hascollaborated with SEMARNAT, Mexico’s environ-mental protection agency, to develop a series ofcommercial-scale demonstrations at variousswine farms to raise awareness and technicalcapability within Mexico. As a result of thesedemonstrations, EPA is helping SEMARNATimplement the next phase to advance thecapacity of the Mexican anaerobic digesterindustry. The next phase of work will includeverification of technology performance, develop-ment of national anaerobic digester technicalstandards, and an anaerobic digester technologysupplier certification program in Mexico.

Anaerobic digester effluent lagoons are used in many con-fined animal operations for stabilization and temporary storage of manure wastes. This lagoon is located at the Santa Monica Farm in La Piedad, Michoacán, Mexico.

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Methane gas released from coal min-ing activities can be captured andused as a clean energy source,

resulting in reduced GHG emissions, improvedair quality, and enhanced mine safety. In 2005,global methane emissions from coal mineswere estimated to be nearly 400 MMTCO2E. TheUnited States is a leader in the recovery of CMMand continues to work with international part-ners through Methane to Markets to share infor-mation, expertise, and technology to promoteCMM project development. In this reportingyear, the U.S. government has supported theseinitiatives with more than $1.7 million in fund-ing. Major activities from this sector are sum-marized below.

Supporting Technology DemonstrationProjects in China and Mexico

To facilitate and encourage the adoption of the latest technologies in the global market-place, EPA is supporting demonstration projectsto showcase available, cost-effective CMM tech-nologies. In China, EPA is supporting a demon-stration project featuring the use of enginetechnologies capable of producing power fromlow-quality methane. In Mexico, EPA is funding ademonstration project designed to convert CMMto liquefied natural gas (LNG).

Building Capacity and OvercomingInformational Barriers in China and India

One significant barrier to developing effec-tive CMM recovery and use projects is the lackof information on coal mines, common miningpractices, and coal mine project opportunities.

To help project developers overcome this barrier, the United States is supporting severalinitiatives that will help to develop the on-the-ground awareness and technical expertise necessary for successful short-term and long-term project development.

For example, in 2007, EPA continued to sup-port the work of the Coal Mine/CoalbedMethane (CBM) Clearinghouse in China. Thisclearinghouse provides project developers andinvestors with easily accessible in-countrytechnical and regulatory expertise on CMMproject development. To date, the clearing-house has provided its services to a variety ofinternational organizations, including theInternational Energy Agency, ADB, AsianPacific Economic Cooperation, and the UnitedNations Development Program.

To further increase awareness and expertiseat the provincial level, EPA is backing the CMMRecovery and Utilization Initiative in the GuizhouProvince in China. With more than 2,000 coalmines producing a combined 100 million tons ofcoal each year, the potential for CMM recovery and utilization as a clean energy sourcein Guizhou is substantial, yet for most mines thissource is not exploited because of information,communication, and other market barriers. Workin Guizhou is aimed at helping stakeholdersovercome these barriers and connect viableCMM project sites with the international projectdevelopment community. Specifically, the initia-tive will provide international project developerswith free, focused, and current informationregarding project development opportunities at45 coal mines in Guizhou.

Coal Mines

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EPA, USTDA, and the Government of Indiahave recently established a CBM and CMMClearinghouse in India, the world’s third largestproducer of coal. The clearinghouse is similar tothe national clearinghouse in China and is man-aged by India’s Ministry of Coal and the Ministryof Petroleum and Natural Gas. EPA organizedone introductory workshop and USTDA organ-ized a kickoff event to inaugurate this work.India’s coal production is predicted to dramatical-ly increase in the near future; CMM emissionsare expected to increase unless methane recov-ery and utilization projects are implemented.

Improving Mine Safety and Policy Incentivesin Ukraine

In Ukraine, USAID and the U.S. Department ofLabor have provided in-depth, onsite training tocoal miners at a mine in the Donbass coal regionon the use of a U.S. horizontal coal seam drillingrig to remove methane from coal seams moreeffectively. This advanced technology and bestpractice will help reduce in-mine methane con-centrations, improving mine safety and encour-aging the recovery and utilization of high-qualitymethane gas as a clean energy source.

EPA is also promoting methane utilization atcoal mines in Ukraine. EPA funded three tech-nical workshops there; in addition, EPA and aUkrainian NGO are investigating and raisingawareness of the best policy and regulatorypractices to help create incentives and reducebarriers for CMM project development. After an initial exploratory phase, a roundtable isplanned for key government stakeholders toshare initial policy recommendations.

Overcoming Financial Barriers in Russia and Eastern Europe

The United States supported the UnitedNations Economic Commission for Europe’s(UNECE’s) work in Russia and Eastern Europe tominimize financial barriers to CMM projects.

Technical and financial experts conducted mis-sions to identify potential project opportunities inRussia and Kazakhstan. They provided support todevelop bankable documents, which project pro-ponents can use to apply for financial support

Providing Technical Assistance to the

World’s Largest CMM Project

The United States has been instrumental in helpingto implement the world’s largest power generationproject fueled with CMM. Located at the Sihe Minein Shanxi Province, China, the Jincheng AnthraciteMining Group operates a 120 MW power generationproject that uses Caterpillar engines. The projectalso recovers heat to produce hot water and steam(i.e., combined heat and power) for mining opera-tions. The electricity generated serves an estimated90,000 households in addition to local commercialand industrial facilities. Over the project’s 20-yearlifetime, it is anticipated that 40 MMTCO2E emis-sions will be avoided.

The total project investment of $235 million hasbeen financed by Japan Bank for InternationalCooperation, ADB, the Jincheng municipal govern-ment, and the World Bank Prototype Carbon Fund.USTDA provided a $500,000 technical assistancegrant to develop specifications for the power gener-ation equipment. Additionally, EPA provided train-ing for a Chinese delegation from the JinchengAnthracite Mining Group on advanced U.S. methanedegasification technologies.

Construction of the world’s largest CMM-generatedpower project (120 MW capacity) at Sihe Mine,Jincheng, Shanxi Province, China.


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and complete project-specific business plans toattract investor interest. These efforts culminatedin a road show to showcase a preliminaryinvestment study about the opportunity to develop a CMM recovery and utilization projectat the Krasnogorskaya Mine in Russia to sixinterested investors in London. Also as part ofthis effort, UNECE developed a business plan

template in Russian and English and conductedthree finance-focused workshops in Russia andSwitzerland as well as technical workshops inPoland and Ukraine. Lessons learned from thisinitiative were disseminated at several meetingsof the UNECE Ad Hoc Group of Experts on CoalMine Methane and at the 2007 Methane toMarkets Partnership Expo in Beijing.

Supporting Pre-Feasibility and Feasibility Studies in Partner Countries

Pre-feasibility and feasibility studies are key steps inproject development. Pre-feasibility studies help devel-opers determine whether a project has the potential tosucceed financially and technically. This information isnecessary to raise needed capital and generate interestto move the project forward to the next stage of devel-opment: the feasibility study. The feasibility study pro-vides developers with more detailed analysis on costs,challenges, and expected results based on projectparameters. Undertaking either type of study can bechallenging and expensive.

The United States has funded several pre-feasibility andfeasibility studies for projects in the coal sector to helpadvance project development in China, India, andNigeria. These studies provide important informationthat accelerate project implementation at the studysites. For example, in 2007:

• In China, EPA launched initiatives to work withChinese coal mines by conducting three full-scale feasibility studies at the Liuzhuang mine in AnhuiProvince, a group of six mines in the Songzao coalbasin in Chongqing, and a group of six mines in theHebi region of Henan Province. The studies will assessthe technical and economic viability of implementingmethane recovery and utilization projects. The resultswill be summarized along with project implementa-tion recommendations in three comprehensive finalreports. These projects could yield significant bene-fits. For example, the Hebi project plans to utilizeCMM to power 22 internal combustion engines, eachcapable of generating 500 kW of electricity, andcould deliver up to 250,000 MTCO2E in emissionreductions annually.

• Also in China, EPA has funded a feasibility study foran innovative technology that mitigates dilute

methane from coal mine ventilation shafts at theTiefa Mine in Liaoning Province.

• In India, EPA funded a study quantifying the dilutemethane emissions from underground coal mineventilation shafts (known as ventilation air methaneor VAM) from the Moonidih Mine in Jharia, Jharkland,and the Chinakuri Mine in Ranigani, West Bengal.

• In Nigeria, EPA supported a pre-feasibility study atthe Okpara Mine. Mining here is expected to recom-mence in 2010 after several years of inactivity, withthe mine producing up to 400,000 tons of coal annu-ally. Project developers are planning to capture anduse drained mine methane to generate 1.24 MW ofelectric power, which will then be sold to the mine.

EPA provided technical support to help develop pre-liminary analyses and profiles of 20 project opportu-nities for CMM projects in China, India, Mexico,Nigeria, Russia, and Ukraine. These project opportuni-ties were showcased at the 2007 Methane to MarketsPartnership Expo in Beijing.

Pumping station at a mine under study in China. The stationextracts methane from the underground coal seam inadvance of and during mining.

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Landfills produce methane when organicmatter in the landfill decays under anaer-obic conditions. Landfill gas (LFG) is com-

posed of about 50 percent methane, and, whencaptured, it can also be a source of clean energy.LFG can be used to generate electricity, used as asubstitute for direct fossil fuel consumption, orrefined and injected into the natural gas pipeline.Capturing and using LFG in these ways can yieldsubstantial energy, economic, environmental, airquality, and public health benefits.

In 2005, global methane emissions fromlandfills were estimated to be nearly 750MMTCO2E. The United States has been a leaderin recovery of LFG and, in this reporting year,has spent more than $2.4 million to expand theproductive use of LFG through Methane toMarkets. Highlights of these efforts are summa-rized below.

Co-Hosting the Ecuador LFG Project Expo

In collaboration with the Ecuadorian Ministryof Environment, EPA organized and co-hosted aproject expo, “Exploring Opportunities forLandfill Biogas in Latin America,” in Guayaquil,Ecuador. More than 40 developers, investors,and technology providers joined with represen-tatives from 13 municipalities to participate inthe workshop and learn about the results oflandfill assessments and pre-feasibility studiesconducted by EPA at 14 landfills in Argentina,Colombia, Ecuador, and Mexico. If all of theseprojects were implemented, they would result in annual methane emission reductions of 1.5MMTCO2E over the projects’ lifetimes. After the

Expo, EPA continued to provide technical assistance to several of these landfills toadvance project development.

Providing Operations and MaintenanceLandfill Operator Training in Ukraine

EPA piloted the first operations and mainte-nance (O&M) training course for landfill opera-tors in Ukraine. Qualified landfill operators fromthe United States delivered the training at Kievand Rivne landfills, with 20 landfill managers,operators, city officials, and other personnel inattendance. The training presented best practicesin landfill O&M and site conditions to enhancethe prospects for landfill gas recovery, includingworking face management (including landfillingmethods and compaction), equipment and well-field maintenance, LFG recovery, and health andsafety. EPA plans to deliver this course in otherMethane to Markets Partner Countries.

Building Capacity Through LFG EnergyWorkshops in Brazil, China, and Colombia

In conjunction with a seminar sponsored byColombia’s National Association of PublicServices Companies entitled “Climate Changeand Its Impact on Public Services,” EPA conduct-ed a training workshop for Colombian solidwaste officials on LFG energy.

Approximately 40 participants attended theworkshop, including landfill and solid waste offi-cials representing several municipalities. Theworkshop covered the basics of LFG capture,estimating gas recovery potential, and energyutilization technologies.

Landfills


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In Brazil, EPA co-organized a similar work-shop with the São Paulo State EnvironmentSanitation Agency (CETESB). More than 125 par-ticipants from government, the non-profit sector,and universities attended, including representa-tives from municipal landfills. The seminarincluded basic information on LFG utilization,monitoring methane emissions from landfills,and the status of LFG projects in the UnitedStates.

In Shenzhen and Beijing, China, EPA assistedwith two LFG energy workshops on Methane toMarkets and the basics of landfills, beneficial use,the solid waste market in China, and carbonfinance for projects. Attendees represented thesolid waste, engineering, and academic sectorsas well as project developers.

Pre-Feasibility and Assessment Studies inBrazil, India, and Korea

Pre-feasibility and assessment studies esti-mate LFG availability, evaluate a range of ener-gy recovery technologies, and make apreliminary assessment of a LFG energy pro-ject’s economic feasibility. These studies accel-erate project implementation by outliningimportant project data for developers andinvestors.

• EPA completed assessment studies for 11landfills in Brazil. Next, EPA will attend andcoordinate stakeholder meetings at three tofour of the landfills with the most projectpotential. At these meetings, EPA will reportits findings and engage potential end-usersof the gas, local government officials, finan-ciers, and other project stakeholders in theproject opportunities.

• After receiving a grant from EPA, theKorean District Heating Corporation con-ducted pre-feasibility studies for threeKorean landfills. The studies recommendedthe installation of reciprocating enginesranging from 0.6 to 2 MW of electric gener-ating capacity at each of the three landfills.The studies also recommended that developers discuss green power premiumpricing with the Korea Electric PowerCompany for these projects.

• EPA conducted two pre-feasibility studies forthe Pirana and Pune landfills in India. Thesestudies explored the economic viability ofseveral project alternatives, including elec-tricity generation, flare-only, and a pipeline toa nearby industry. The studies are intended toprovide the necessary data to issue a requestfor proposals for a methane capture and useproject at each site.

Attendees of EPA-CETESB workshop touring BandeirantesLandfill Gas Project in São Paulo.

Gaoyan Landfill in Guiyang City, China: site of a U.S.-fundedassessment report that was displayed at the Partnership Expo in Beijing .

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Partnering with the International EnergyAgency (IEA)

EPA and the IEA developed a case studytitled “Turning a Liability into an Asset: LandfillMethane Utilization Potential in India.” At pres-ent, India is transitioning from open dumps tomore managed landfills. The study concludedthat new landfills should consider LFG manage-ment and capture efficiencies as part of the initial landfill design process. In order to launcha LFG energy industry in India, the study rec-ommended, utilities should offer green powerpremium pricing for LFG-generated electricityand landfills should take advantage of existinggovernment subsidies for LFG energy.

Refining Country-Specific Landfill Models forMexico and Ecuador

LFG modeling plays a very important role inevaluating potential project opportunities. Thesemodels more accurately assess how local cli-mates, waste streams, and landfilling practices indeveloping countries affect LFG generation. EPAcontinues to develop and refine country-specificmodels for Mexico and Ecuador in order toexpand the use of LFG in these countries.

• EPA updated the LandGEM LFG model forMexico with data collected from recentpumping trials sponsored by EPA and USAID.These data enable users to produce typicalLFG generation and recovery rates for land-fills located in various regions of Mexico.

• EPA created a LandGEM LFG model forEcuador using local climate and wastestream data. EPA also calibrated the modelusing data from recent pumping trials at theLas Iguanas and Pichacay Landfills. Themodel accounts for several local landfill

conditions including excess rainfall infiltra-tion (as a result of permeable cover and cap-ping), high leachate levels, shallow wastedepths, and high percentages of food wastes.EPA also created a matrix of model inputs toaccount for various moisture levels acrossdifferent landfills in Ecuador.

Sharing U.S. LFG Expertise with InternationalStakeholders

Delegates from Argentina, Brazil, Colombia,and Ecuador attended EPA’s LMOP conference inWashington, D.C. These delegates attended tech-nical sessions covering a variety of innovativeLFG energy projects. Before the conference, dele-gates also toured the I-95 Landfill in Fairfax,Virginia. During the tour, the delegates askedquestions about landfill operations and mainte-nance, LFG collection, and LFG energy. The I-95Landfill uses LFG to generate electricity, fuelinfrared heaters in its maintenance facility, anddehydrate sludge from the adjacent wastewatertreatment plant.

Extraction well monitoring at the Uruli Devachi Landfill inPune, India.

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Oil and Gas Systems

Methane emissions from oil and gassystems can be the result of normaloperations, routine maintenance, and

system disruptions. Reducing fugitive emissionscan reduce product losses, enhance energy secu-rity, lower methane emissions, and increase rev-enues. In 2005, global methane emissions fromoil and gas systems that could be utilized wereestimated at nearly 1,170 MMTCO2E.

The United States has collaborated with theMethane to Markets Partnership to encouragePartner Countries to implement proven, cost-effective technologies and practices thatimprove operational efficiency and reduceemissions. In this reporting year, the U.S. gov-ernment has spent more than $2.6 million tosupport the deployment of these measures.Some of the U.S. government’s notable 2007accomplishments and ongoing activities arediscussed below.

Assessing Emission Reduction Opportunity at PEMEX

Since 2006, USAID and EPA have supportedseveral project activities with Mexico’s state-owned oil company, Petróleos Mexicanos(PEMEX), including measuring and analyzingemissions, installing dry seals at the CiudadPEMEX Gas Processing Center, and supportingan emission reduction program at select facili-ties. In addition, PEMEX reviewed and quanti-fied emissions along the Cardenas PipelineSector and found PEMEX’s maintenance pro-gram to be effective at minimizing fugitiveemissions from the pipeline operations.

Natural Gas STAR International:

Reducing Methane Emissions and

Delivering More Gas to Markets

In 2006, EPA launched Natural Gas STARInternational, a global partnership with oil and gascompanies. Natural Gas STAR International buildson the success of the domestic Natural Gas STARProgram, which has partnered with U.S. oil and gascompanies since 1993 to promote cost-effectivemethane emission reduction activities.

The partnership started with seven charter part-ners (ConocoPhillips Canada Ltd., Devon EnergyCorporation, Enbridge Inc., ExxonMobilCorporation, Marathon Oil Corporation,Occidental Oil and Gas Corporation, andTransCanada), which were soon joined by the Oiland Natural Gas Company of India Ltd. (ONGC)and Comgas, a natural gas distribution companyin São Paulo, Brazil. ONGC is the first state-ownedoil and gas company; ONGC and Comgas are thefirst non-North America-based companies to join.

These partners’efforts are already yielding signifi-cant results. Natural Gas STAR International partnershave reduced methane emissions by 2.68 MMTCO2Ein 2007 and 4.4 MMTCO2E since 2006.

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Collectively, these efforts have yielded signifi-cant methane emission reductions and increasedPEMEX’s interest in expanding methane emissionreduction program efforts. EPA is currently work-ing with PEMEX to integrate the analysis resultsinto a broader, PEMEX-wide methane emissionreduction program and to support the design of aPEMEX-funded $22 million program to install dryseals on more than 40 compressors. Workingtogether, EPA and PEMEX have identified nextsteps for the program, to be implemented in cal-endar year 2008, including specialized training,developing pilot measurement protocols, improv-ing emissions inventory data, developing facility-and operations-specific action plans, providingtechnical support, and gaining internal and exter-nal support for expanded emission reductionprogram activities.

Improving Leak Detection and Repair in Ukraine

Ukraine is the largest natural gas transitcountry in the world by volume. Emissionsfrom Ukraine’s natural gas system are verylarge, a function of both the design and age ofthe system. Since 2000, several U.S. govern-ment agencies have been working withCherkasytransgas, a large Ukrainian branchcompany of Ukrtransgaz, on methane emis-sion reduction initiatives involving detectingand measuring leaks, developing and imple-menting leak repair plans, confirmingmethane reductions with post-repair measure-ments, and summarizing successes.

Building on the success of Cherkasytransgas,EPA began a four-year project in 2007 toengage the U.S. Embassy, Ukrainian govern-ment organizations, Cherkasytransgas,Uktransgaz, and Naftogaz Ukrainy (the large,state-owned holding company of whichUktransgaz is a subsidiary). The main goal

of this effort was to establish more formal technology transfer and information-sharingnetworks to promote methane mitigation proj-ects in the Ukrainian natural gas transmissionsector. EPA also funded the purchase ofsealants as part of a project to further reducemethane emissions from valves in Cherka-sytransgas’s system, which reduced emissionsby approximately 720,000 cubic meters.

As a result of this collaboration, theUkrainian Ministry of Fuel and Energy devel-oped a working group to discuss potentialfinance options for implementing methanemitigation projects in the Ukrainian naturalgas transmission system. In addition,Ukrtransgaz held the first-ever methane miti-gation technology transfer seminar (co-led byCherkasytransgas) for all six of its sub-sidiaries; the seminar was well attended andresulted in recommendations to promotemethane mitigation projects. As a next step,EPA will continue to build on this collabora-tion. In particular, Naftogaz and Ukrtransgazare researching options for large-scale sys-tem-wide methane mitigation measures.Through its collaboration with EPA,Cherkasytransgas has set a goal of reducingmethane emissions by 3.7 million cubicmeters by 2010.

PEMEX engineer takes a measurement of newly installed drygas seals at facility in Mexico City, Mexico.


23DRAFT: 11/10/08_V1

Reducing Emissions from Oil and Natural GasAssets in India

EPA has launched an extremely successfulpartnership with India’s Oil and Natural GasCorporation (ONGC). In September 2008, theONGC Chairman directed his personnel to pur-sue implementation of cost-effective technolo-gies and practices that could reduce ONGC’smethane emissions by an estimated 10 millioncubic meters per year, potentially saving$740,000 worth of natural gas. The declarationwas the direct result of a year-long collabora-tion between EPA and ONGC, in which EPAprovided support for onsite methane emissionmeasurement studies to identify and measuremajor methane emission sources that couldthen be paired with established mitigationtechnologies and practices. The recommendedmitigation activities cover only four out of themany facilities operated by ONGC, so this firsteffort is just the start of the significant volumeof methane emission savings that can ultimate-ly be achieved. ONGC is also planning to forman internal measurement team to institutional-ize the leak evaluation strategies applied dur-ing the collaboration with EPA.

Developing and Implementing ReductionStrategies in Poland

EPA is working with GAZ-SYSTEM SA,Poland’s largest state-owned natural gas trans-mission company, to provide technical informa-tion and assistance in implementing methanemitigation measures at compressor stations andpipelines. GAZ-SYSTEM has identified a list ofmajor emissions sources and activities to beaddressed (such as reducing vented emissionsfrom compressors and pipelines), and EPA is pro-viding technical information and assistance oncost-effective measures to address these sourcesand activities, including expected methane emis-sion reductions, implementation cost data, andeconomic benefit analyses to help prioritize

measures. In addition, EPA and GAZ-SYSTEMdeveloped a broader strategy to achieve methanereductions with EPA’s continued involvement inidentifying and prioritizing opportunities and pro-viding technical information on cost-effectivetechnologies and practices.

Partnering with Gazprom, the World’s LargestNatural Gas Producer

Russia is the largest emitter of methaneemissions from oil and natural gas operationsworldwide. Its state-owned natural gas company,Gazprom, is the world’s largest natural gas pro-ducer and possesses the world’s largest naturalgas reserves. EPA is working with Gazprom toplan a joint technology transfer workshop andtechnical training in Russia in fall 2008, whichwill feature EPA and industry experts. The goalof the workshop and training is to learn aboutGazprom’s current methane mitigation activitiesand to share information on other cost-effectivetechnologies and practices Gazprom might consider using to reduce emissions.

EPA also awarded a multi-year grant to theRussian Academy of Sciences to identifymethane emission reduction project opportuni-ties in the distribution sector. The Academy col-laborated with various Russian companies andsector experts to bring projects before theRussian government for possible governmentcertification under Russian climate initiatives.

PEMEX engineer descends scaffold tower after taking wetseal measurements at a PEMEX gas processing center.

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Identifying Methane Emission ReductionOpportunities at Chinese Oil and GasCompanies

EPA has been working with several part-ners, including Environment Canada and theChina National Petroleum Corporation (CNPC)to identify methane emission reductionopportunities at the Changqing OilfieldCompany (a subsidiary of CNPC). Preliminaryaudits revealed that improvements to flaringand venting practices at facilities at the oilproduction facilities and the control of casinggas flaring and venting and flashing lossesfrom storage tanks could yield significantmethane emission reductions. Additional fieldaudits will be conducted in late 2008. EPAand the CNPC Environmental EngineerTechnology Center are collaborating to draftcorporate emission reduction guidelines andto plan a series of tours for CNPC officials tovisit North America and meet with relevanttechnology vendors.

Studying Pipeline and Compressor StationMethane Leak Detection in the KyrgyzRepublic

EPA has launched a project aimed atstudying leak detection, measurement, andanalysis at gate and compressor station facili-ties on a 116-kilometer natural gas transmis-sion system of the Tashkent-Bishkek-Almatypipeline in the Kyrgyz Republic. Project part-ners include KyrKazGaz, KyrgyzGaz, andADB—a Methane to Markets Project Networkmember and multilateral financial institutionwhose mission is to help member countriesreduce poverty and improve quality of life byproviding project funding, offering technicalassistance, and building knowledge capacity.The goal of the project is to identify feasiblemethane emission reduction projects whileproviding training and technology transfer tothe pipeline operator. Upon completion, theproject is expected to yield annual emissionreductions of 25,000 MTCO2E.

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Looking Forward

Methane is a potent GHG, with a rela-tively short atmospheric lifetime.Reducing methane emissions is thus

an important component of the United States’climate action strategy, since reductions willslow warming in the short term while deliver-ing near-term economic, environmental, andenergy benefits. The Methane to MarketsPartnership has made tremendous progressover the last four years in removing the barriersto cost-effective methane emission reductionsaround the world. As the Methane to MarketsPartnership continues to grow, the UnitedStates will remain strongly committed to sup-porting its success. Over the next few years, theUnited States will focus on several key areas ofparticipation in the Partnership, including:

• TThhee 22001100 PPaarrttnneerrsshhiipp EExxppoo.. The UnitedStates is eager to play a leadership role onceagain in the upcoming Partnership Expo,tentatively scheduled for early 2010. ThePartnership Expo has proven to be an effec-tive means of matching project developmentopportunities with relevant skills andresources, and U.S. government agencieswill aggressively promote partnerships tobring these opportunities to fruition.

• PPaarrttnneerr ccoouunnttrryy––ssppeecciiffiicc aaccttiioonn ppllaannss iinn eeaacchhsseeccttoorr.. The Partnership achieves its goalsprincipally through commitment and actionon the part of its Partner Countries. TheUnited States is looking forward to workingwith all of the Methane to Markets PartnerCountries over the coming year to discussthe potential for new methane reduction

strategies in the context of country-specificaction plans. The United States is committedto continuing its support of the Partnership’stechnical subcommittees, creating roadmapsfor project development, and chartingopportunities for developers, financiers, andpolicy-makers alike.

• TTeecchhnniiccaall aassssiissttaannccee aanndd ffiinnaanncciiaall ssuuppppoorrtt ffoorrpprroojjeecctt ddeevveellooppmmeenntt iinn aallll ffoouurr MMeetthhaannee ttooMMaarrkkeettss sseeccttoorrss.. The United States will con-tinue its active support for methane reduc-tions in all four sectors of the Partnership. The United States has already committedmore than $10 million in FY 2008. SeveralU.S. government agencies will be continuingto conduct trainings, provide grants, supportpre-feasibility and feasibility studies, andundertake other activities to build on theirmulti-year initiatives already underway.

The Partnership has been extremely successfulin raising awareness about the importance offocusing global efforts on methane. More impor-tantly, Methane to Markets has engaged the pri-vate sector along with 27 Partners from all overthe world. These actions have not only led to realGHG emission reductions but also have proven tobe a good complement to efforts under the KyotoProtocol—providing technical assistance andcapacity-building essential to ensure long-termproject development success. Next year, theUnited States will work with Partners to secure acontinued and expanded commitment to thePartnership, with a mind to enabling greaterefforts to reduce methane emissions in support ofexisting and post-2012 climate frameworks.

November 2008To learn more, visit www.methanetomarkets.org

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