Understanding CDM Methodologies - SuSanA

Day-by-Day
Estimate to
determine highest
Demand for that
Day during last 5
Years
Definition of
“Influence
Area”, whose
CBM Capture
and Burning can
generate CERs
Leakage due to
Displacement of
Methane used
in Baseline
Leakage due to
CBM Seepage
from adjacent
Seams – 10%
Default
Leakage due to
increased Coal
Production –
10% Default
Leakage due to
CER Impact on
Coal Prices
Currently not
calculated, but
can be put back
on EB Agenda
No ex-ante
Monitoring
Ex post
Monitoring
of Methane
Concentration
in CMM and
Methane burnt
Characteristics of
Coal Seams and
CBM Wells
“Overlaps”, i.e. displacement of thermal methane uses in the baseline
scenario by methane use for electricity generation in the project scenario, do
not generate emission reductions. To allow day-by-day projection of thermal
methane demand, data for the last five years before project start have to
be provided. For each day of a year during the crediting period, the highest
demand volume for that day during the last five years will determine baseline
scenario demand. For example, if on day x of each of the last five years
methane uses were 105, 111, 95, 102 and 108% of the mean daily demand
of each year respectively, the projected methane demand for day x will be
111% of the mean daily projection of the project year. If daily demand data
are not available, monthly data can be used instead.
According to a complex procedure to determine the area influenced by
mining where the coal seam is “de-stressed”, the share of “eligible” CBM
from wells drilled before mining is determined. Only this share is used to
calculate CBM-related baseline emissions, while the total CBM volume
including the non-eligible share is used to calculate project emissions, to be
on the conservative side. CBM capture only generates reductions once the
coal seam is mined through …
Leakage consists of four elements. The first is emissions due to “overlaps”
as described above, where fossil fuels are now used instead of methane.
For the resulting energy shortfall, the energy content is calculated and
multiplied by the emissions factor of fuels that would be used to cover the
shortfall. The second leakage component is CBM generation which is eligible,
but occurring from coal seams outside the de-stressed area, which would
happen if the boreholes have no casing and there are no surface boreholes
for CBM extraction in the baseline scenario. For this leakage, a default
discount of 10% or an ex-ante engineering estimate is to be used. The third
component of leakage applies if CMM is ventilated in the baseline scenario.
As ventilation in an underground mine cannot transport infinite amounts of
methane, CBM/CMM extraction before mining can lead to increased coal
production. For this leakage, a default discount of 10% or the share of the
additional coal production in total coal production is to be used. The fourth
leakage component is very unusual as it wants to address the market impact
of CER revenue on coal prices and apply a discount that would capture the
coal consumption increase due to reduced market price. This is inconsistent
with all other baseline methodologies. For the time being, the fourth
component is not to be calculated, as the Meth Panel recommended that the
EB should decide after 2-3 years of projects being implemented using ACM
0008 whether it should be revised to reflect price and market impacts.
Monitoring: Monitoring shall include the following data (only ex-post):
• Amount of CBM/CMM collected, using a continuous flow meter and
monitoring of temperature and pressure;
• Methane concentration in extracted CBM/CMM, using a continuous
analyzer or with periodical measurements, at a 95% confidence level ,
using calibrated portable gas meters and taking a statistically valid number
of samples;
• MHC concentration in extracted CBM/CMM;
• Electricity, heat and fuel generation and consumption of the project;
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