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Methane Emission Reduction Program

The most important assumptions of the JSW CG Environmental Strategy for the years 2022-2030 are focused on four main areas - air protection, respect for water and biodiversity, closed circuits management and land reclamation, which is in line with the main environmental goals of the UN 2030 Agenda and the so-called taxonomy and is a response to the challenges and clarification of the JSW Group role in the environmental, energy and climate transformation of Poland and the European Union.

It was indicated that the JSW Group has been taking environmental and climate measures for years, including the reduction of greenhouse gases, and the current strategy is a continuation and development of the direction adopted so far.

Considerable pressure in line with market, social and regulatory expectations in the strategy is located in the area of emission reduction. The target of reducing greenhouse gas emissions (carbon footprint) by 30% by 2030 (compared to 2018 - i.e. at 2.5% per year in line with the "well below 2⁰C" policy) was adopted and a commitment was made to act towards achieving climate neutrality by 2050.

Due to the fact that 74% of the JSW Group carbon footprint is methane, in this area, the Methane Drainage and Management Office has developed a schedule for the methane emission reduction program until 2025 (REM), taking into account the current program of economic use of methane and new conceptual activities necessary to achieve the assumed level of methane emission reduction. Among others, improving the efficiency of methane drainage, building a pipeline connecting northern mines, and installing additional cogeneration engines.

Implementation of the entire program for the reduction of methane emissions (REM) with an estimated value at the level of approx. PLN 300 million by 2025 (including PLN 122 million included in the current business model), will allow to reduce greenhouse gas emissions per carbon footprint by approx. 24% by 2026. This is a decrease in direct methane emissions as well as emissions resulting from external energy purchases.

The Methane Emission Reduction Program assumes an increase in the methane drainage efficiency to 50% and the use of captured methane to 95%.

Design works are currently underway by the Central Mining Institute and the AGH University of Science and Technology under the supervision of the Methane Drainage and Management Office. Achieving the assumed reduction of methane emissions requires many underground works, modernization of the methane drainage network and investment in surface infrastructure.

The reduction of methane emissions to the ventilation air, and thus to the atmosphere through ventilation shafts, will be implemented through actions directly in the mining excavations, mainly increasing the methane intake by means of the methane drainage system. It was assumed that the methane drainage efficiency of JSW mines would be > 50%. Currently, the methane drainage efficiency ranges from 30% to 40% at JSW, where the world average is 20%.

The second course of action is to fully use the methane captured by the methane drainage system. The methane utilization rate was assumed to be> 95%. This direction is a continuation of the Economic Use of Methane (GWM) program in northern mines extended to southern mines. It is planned to modernize and build a methane drainage station and build new cogeneration systems. After the completion of the program, the total installed capacity of own cogeneration systems will be 60 MWe. The construction of a gas pipeline connecting the northern mines is an important element of the program, allowing for the approximation to the full use of the captured gas. This pipeline will allow the surplus gas to be transferred from / to other locations. Similarly, it is planned to make better use of the existing pipeline connecting the southern mines by modernizing the methane drainage station to enable gas transmission to / from each location.