CONSOL Energy in Partnership to Develop Largest Ventilation Air Methane Abatement Project in U.S.
January 06 2010 - 8:45AM
PR Newswire (US)
PITTSBURGH, Jan. 6 /PRNewswire-FirstCall/ -- CONSOL Energy Inc.
(NYSE: CNX) and Green Holdings Enlow, Inc., a greenhouse gas
abatement company, have entered into an agreement to develop the
largest ventilation air methane (VAM) emission abatement project in
the United States at CONSOL's Enlow Fork Mine in southwestern
Pennsylvania. The VAM abatement equipment to be installed at the
mine will capture and destroy methane released during the mining
process that would otherwise escape to the atmosphere through the
mine's ventilation system. CONSOL Energy's Enlow Fork Mine is an
active underground coal mine that produces approximately 10 million
tons of coal a year. The project is designed to reduce the mine's
VAM emissions by the equivalent of 190,000 metric tons of carbon
dioxide (tCO2e) a year and is estimated to be operational in the
second half of 2010. Methane is a greenhouse gas that is 21 times
more effective at trapping heat than CO2. Globally, VAM emissions
from coal mines amount to approximately 300 million tCO2e each
year. "If the United States intends to reduce greenhouse gas
emissions, it will have to be addressed on a broad front dealing
with many different sources of GHGs," said Steven Winberg, vice
president, research and development, for CONSOL Energy. "We already
have a large coal bed methane production business that removes
methane from coal seams before mining, producing a valuable fuel.
With this agreement, we will deal with methane that is released
from a coal seam during the mining process." Winberg said the
project will allow CONSOL to move from its current small scale
ventilation air methane capture program to a commercial scale
effort that, if successful, can be applied at many of the company's
existing underground mines. In addition to the capture of methane
from coal seams and from mine ventilation, the company has a number
of other projects in which it is currently involved, including the
capture of CO2 from high pressure coal combustion equipment, the
evaluation of CO2 storage in unmineable coal seams or in other deep
geological formations. The project at Enlow Fork Mine is the first
of a number of VAM abatement undertakings that Green Holdings
Corporation expects to take in the United States in anticipation of
a strong, growing market for carbon offsets to be generated by the
projects. Green Holdings Corporation has a focused, high growth
strategy with significant projects under development in the United
States and the People's Republic of China -- the two largest
sources of VAM emissions in the world. "We are pleased to be
working with CONSOL Energy, the largest underground coal mine owner
and operator in the United States, on this important project,"
stated Jerry Gureghian, Green Holdings Corporation chief executive
officer. Green Holdings will supply the capital, will operate the
unit and will be responsible for selling the emissions reduction
credits. CONSOL will provide the ventilation air fan, site and
technical support. About Green Holdings Corporation and Green
Holdings Enlow Inc. Green Holdings Corporation is a vertically
integrated greenhouse gas emission abatement company utilizing
proven technologies to implement projects under various greenhouse
gas initiatives. Currently, the Company is focused on developing
projects that reduce or abate ventilation air methane (VAM)
emissions from underground coal mines, resulting in significant
carbon offsets that will be monetized on a growing international
market. Green Holdings Enlow, Inc. is a wholly owned subsidiary of
Green Holdings Corporation and is developing the largest coal mine
methane abatement project in the United States for CONSOL Energy.
For more information visit http://www.greenholdings.com/ About
CONSOL Energy Inc. CONSOL Energy Inc., a high-Btu bituminous coal
and natural gas company, is a member of the Standard & Poor's
500 Equity Index and the Fortune 500. It has 15 bituminous coal
mining complexes in six states and reports proven and probable coal
reserves of 4.5 billion tons. It is also a majority owner of CNX
Gas Corporation, a leading Appalachian gas producer, with proved
reserves of more than 1.4 trillion cubic feet. Additional
information about CONSOL Energy can be found at its web site:
http://www.consolenergy.com/. Forward-Looking Statements Various
statements in this document, including those that express a belief,
expectation, or intention, as well as those that are not statements
of historical fact, are forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995). The forward-looking
statements may include projections and estimates concerning the
timing and success of specific projects, our future production,
revenues, income and capital spending. When we use the words
"believe," "intend," "expect," "may," "should," "anticipate,"
"could," "would," "will," "estimate," "plan," "predict," "project,"
or their negatives, or other similar expressions, the statements
which include those words are usually forward-looking statements.
When we describe strategy that involves risks or uncertainties, we
are making forward-looking statements. The forward-looking
statements in this document speak only as of the date of this
document; we disclaim any obligation to update these statements
unless required by securities law, and we caution you not to rely
on them unduly. We have based these forward-looking statements on
our current expectations and assumptions about future events. While
our management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. These risks, uncertainties and
contingencies include, but are not limited to: the deteriorating
economic conditions; an extended decline in prices we receive for
our coal and gas affecting our operating results and cash flows;
reliance on customers honoring existing contracts, extending
existing contracts or entering into new long-term contracts for
coal; reliance on major customers; our inability to collect
payments from customers if their creditworthiness declines; the
disruption of rail, barge and other systems that deliver our coal;
a loss of our competitive position because of the competitive
nature of the coal industry and the gas industry, or a loss of our
competitive position because of overcapacity in these industries
impairing our profitability; our inability to hire qualified people
to meet replacement or expansion needs; coal users switching to
other fuels in order to comply with various environmental standards
related to coal combustion; the inability to produce a sufficient
amount of coal to fulfill our customers' requirements which could
result in our customers initiating claims against us; foreign
currency fluctuations could adversely affect the competitiveness of
our coal abroad; the risks inherent in coal mining being subject to
unexpected disruptions, including geological conditions, equipment
failure, timing of completion of significant construction or repair
of equipment, fires, accidents and weather conditions which could
impact financial results; increases in the price of commodities
used in our mining operations could impact our cost of production;
obtaining, maintaining, and renewing governmental permits and
approvals for our operations; the effects of proposals to regulate
greenhouse gas emissions; the effects of government regulation; the
effects of stringent federal and state employee health and safety
regulations; the effects of mine closing, reclamation and certain
other liabilities; the effects of subsidence from longwall mining
operations on surface structures, water supplies, streams and
surface land; uncertainties in estimating our economically
recoverable coal and gas reserves; the outcomes of various legal
proceedings, which proceedings are more fully described in our
reports filed under the Securities Exchange Act of 1934; increased
exposure to employee related long-term 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 current 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; our ability to comply with laws or regulations requiring that
we obtain surety bonds for workers' compensation and other
statutory requirements; acquisitions that we recently have made 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; the anti-takeover
effects of our rights plan could prevent a change of control; risks
in exploring for and producing gas; new gas development projects
and exploration for gas in areas where we have little or no proven
gas reserves; the disruption of pipeline systems which deliver our
gas; the availability of field services, equipment and personnel
for drilling and producing gas; replacing our natural gas reserves
which if not replaced will cause our gas reserves and gas
production to decline; costs associated with perfecting title for
gas rights in some of our properties; location of a vast majority
of our gas producing properties in three counties in southwestern
Virginia, making us vulnerable to risks associated with having our
gas production concentrated in one area; other persons could have
ownership rights in our advanced gas extraction techniques which
could force us to cease using those techniques or pay royalties;
our ability to acquire water supplies needed for drilling, or our
ability to dispose of water used or removed from strata at a
reasonable cost and within applicable environmental rules; the
coalbeds and other strata from which we produce methane gas
frequently contain impurities that may hamper production; the
enactment of Pennsylvania severance tax on natural gas may impact
results of existing operations and impact the economic viability of
exploiting new gas drilling and production opportunities in
Pennsylvania; our hedging activities may prevent us from benefiting
from price increases and may expose us to other risks; and other
factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2008 under "Risk Factors," as updated by
any subsequent Form 10-Qs, which are on file at the Securities and
Exchange Commission. DATASOURCE: CONSOL Energy Inc. CONTACT: Joseph
A. Cerenzia, Director - Public Relations of CONSOL Energy Inc.,
+1-724-485-4062, ; or Cathy Bergman, Investor Relations of Green
Holdings Enlow, Inc., +1-212-554-4414, Web Site:
http://www.consolenergy.com/
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