November Coal News

            In the November 2008 issue, Coal News announced that Peabody Energy has entered into an agreement with the government of Inner Mongolia to develop a large surface mine and downstream coal gasification facility.  The facility would produce methanol (which can be used to fuel internal combustion engines), chemicals, or fuel products.  In September, it was announced that the first U.S. plant would be built by CONSOL near Benwood, West Virginia.  Coal gasification can be used to produce syngas, a mixture of carbon monoxide and hydrogen gas, which can be converted into gasoline or diesel.  High oil prices have recently led to increased interest in coal gasification.  The University of Kentucky's Center for Applied Energy Research prepared a July 2007 report on coal gasification.  According to the report, coal gasification becomes economically viable once oil reaches $60 per barrel. 

           In addition to its economic benefits, coal gasification comes with numerous environmental benefits including the reduction of sulphur, nitrous oxide, mercury, and particulate emissions.  Coal gasification is not, however, without environmental concerns.  The gasification cavity can be a source of both gaseous and liquid pollutants which may pose an environmental risk to groundwater in adjacent strata, depending on whether the contaminants can migrate beyond the immediate reactor zone. US tests in shallow coal seams produced significant groundwater contamination, but the deeper European trial showed no detectable effect on groundwater concentrations in surrounding boreholes. It is key for a gasification project site to undergo a robust assessment so that the appropriate operational controls are instituted.  Groundwater concerns can be managed by careful site selection and operation. Deeper location of the underground coal gasification facility is preferrable (200-500 meters below surface).  Regular groundwater monitoring is also necessary.  As with any subsurface operation, the environmental challenges are real but can easily be managed with proper planning and guidance. 

This article was authored by Chris M. Hunter, Jackson Kelly PLLC. For more information on the author see here.