CONSOL Energy, VCCER Announce Research Project Aimed at Identifying Coal Seam Carbon Storage Alternatives

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Feb 04, 2013, 04:05 ET

BUCHANAN COUNTY, Va., Feb. 4, 2013 /PRNewswire/ -- CONSOL Energy (NYSE: CNX) and the Virginia Center for Coal and Energy Research (VCCER) at Virginia Tech announced today their collaborative efforts on a research project to be conducted in Buchanan County, Va., with funding from the U.S. Department of Energy's National Energy Technology Laboratory (NETL).

The project is one of the carbon storage alternatives being explored by the NETL and will test the potential of unmineable coal seams to store carbon dioxide. CONSOL Energy will donate the use of three coalbed methane wells in the pilot project to be conducted by VCCER and NETL.

"We are pleased to be a part of this important research, which will serve to further define carbon storage alternatives and continue our collaborative efforts to develop clean coal technologies," said Steve Winberg, vice president of CONSOL Energy's research and development department.

Representatives of VCCER, CONSOL Energy and Cardno MM&A (formerly Marshall Miller & Associates, a Southwest Virginia geological and mining consulting firm) were in attendance at the February meeting of the Buchanan County Board of Supervisors today to explain the project and its significance to members of the board and the public.

Using three coalbed methane wells donated by CONSOL Energy's CNX Gas Virginia operations, plans are to inject and store up to 20,000 tons of carbon dioxide (CO₂) into underlying coal seams at the identified site this fall. CO₂ is a naturally occurring odorless, colorless atmospheric gas. It is exhaled every time we breathe and one of its common uses is in the carbonation of drinks, including sodas.

The injection will be performed during a one-year period and builds on a recently completed 1,000-ton injection test that took place in neighboring Russell County, Va. in 2009. CNX Gas, VCCER and NETL also participated in that test.

For this current research program, a comprehensive plan to monitor the injected CO₂ has been established by VCCER and NETL to allow understanding of the feasibility of CO₂ storage in unmineable coal seams and to explore the potential for enhanced coal bed methane recovery (ECBM). It is expected that the coal seam will adsorb the carbon dioxide and potentially release even more methane for collection and use, as occurred in the smaller scale test in Russell County. The current test is part of a larger effort funded by NETL for carbon capture, utilization, and storage (CCUS) projects.

CCUS is the process of capturing CO₂ from large stationary sources, such as power plants, using that CO₂ to produce more oil or natural gas from an existing field and simultaneously storing the CO2 in a way that prevents its release to the atmosphere.

"The research will test the ability to inject CO₂ into coal seams that cannot be mined, as well as the potential to enhance coalbed methane recovery," said Dr. Michael Karmis, director of the Virginia Center for Coal and Energy Research and the Stonie Barker Professor of Mining and Minerals Engineering at Virginia Tech. "I must praise the tremendous cooperation of the gas operator, CONSOL Energy's CNX Gas; and the mineral owner, Harrison-Wyatt, LLC, whose generosity helps make this most important research possible."

For this pilot test, the three existing coalbed methane wells to be utilized will be converted for CO₂ injection and three new wells will be drilled to monitor reservoir pressure, gas composition and the CO₂path. The targeted coal seams are in the Pocahontas and Lee formations and range from 900 to 2,200 feet in depth and from 0.7 – 2.5 feet in thickness. The pilot project is expected to begin in Fall of 2013.

"The results of this test will be vital to assess the potential of geologic storage in Appalachian coal seams as a safe and permanent method to mitigate greenhouse gas emissions while enhancing coalbed methane recovery," Karmis explained.

The technical research team for the Buchanan County site is comprised of researchers from the Virginia Center for Coal and Energy Research at Virginia Tech; Cardno MM&A; CONSOL Energy's Research and Development department; the Virginia Department of Mines, Minerals, and Energy; Southern States Energy Board; Gerald R. Hill Ph.D., Inc.; Geological Survey of Alabama; Sandia Technologies; and Det Norske Veritas.

About CONSOL Energy

CONSOL Energy Inc. (NYSE: CNX) is a Pittsburgh-based producer of coal and natural gas. It has 12 bituminous coal mining complexes in four states and reports proven and probable coal reserves of 4.5 billion tons. The company's premium Appalachian coals are sold worldwide to electricity generators and steelmakers. In natural gas, CONSOL has transformed itself from a pure-play coalbed methane producer to a full-fledged exploration and production company. The company is a leading producer in the Marcellus Shale, has an active exploration program in the Utica Shale and has proved natural gas reserves of over 3.5 trillion cubic feet. Operational safety is the company's top core value and CONSOL boasts a record of almost two times better than the industry average for underground bituminous coal mines. In 2011, the company recorded its best safety record since it was founded in 1860. CONSOL Energy is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. Additional information about CONSOL Energy can be found at its Web site: www.consolenergy.com.

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the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934; the impacts of various asbestos litigation claims; increased exposure to employee related long-term liabilities; increased exposure to multi-employer pension plan liabilities; minimum funding requirements by the Pension Protection Act of 2006 (the Pension Act) coupled with the significant investment and plan asset losses suffered during the recent economic decline has exposed us to making additional required cash contributions to fund the pension benefit plans which we sponsor and the multi-employer pension benefit plans in which we participate; lump sum payments made to retiring salaried employees pursuant to our defined benefit pension plan exceeding total service and interest cost in a plan year; acquisitions and joint ventures that we recently have completed or entered into or may make in the future including the accuracy of our assessment of the acquired businesses and their risks, achieving any anticipated synergies, integrating the acquisitions and unanticipated changes that could affect assumptions we may have made and divestitures we anticipate may not occur or produce anticipated proceeds including joint venture partners paying anticipated carry obligations; the anti-takeover effects of our rights plan could prevent a change of control; increased exposure on our financial performance due to the degree we are leveraged; replacing our natural gas reserves, which if not replaced, will cause our gas reserves and gas production to decline; our ability to acquire water supplies needed for gas drilling, or our ability to dispose of water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules; our hedging activities may prevent us from benefiting from price increases and may expose us to other risks; changes in federal or state income tax laws, particularly in the area of percentage depletion and intangible drilling costs, could cause our financial position and profitability to deteriorate; and other factors discussed in the 2011 Form 10-K under "Risk Factors," as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.

SOURCE CONSOL Energy