GE Energy and The JSC Coal Company Krasnoarmeiskaya Zapadnaya sing an agreement

Ukraine’s Coal Mine Industry Continues Regional Leadership to Reduce
Emissions, Cut Gas Costs and Enhance Workplace Safety
Cogeneration Project in Donetsk Region Taps into GE Energy’s Jenbacher Gas Engines to Generate
On-Site Power as Coal Industry Modernizes Mine Operations
JENBACH, AUSTRIA—August 20, 2008—The JSC Coal Company Krasnoarmeiskaya Zapadnaya is the
latest Ukraine company to modernize its coal mining operations by signing a framework
agreement with GE Energy. Under the agreement, JSC plans to install up to 20 of GE’s
ecomaginationTM-certified Jenbacher coal mine gas-fueled cogeneration units. The engines will use
the active mine‘s own methane gas to generate about 129 MW in total power output, covering the
mine’s on-site power and heat requirements. The initiative will also reduce site emissions and
support workplace safety initiatives.
The privately owned mine is located near the town of Krasnoarmeisk in the coal-rich Donetsk
region in eastern Ukraine.
While many coal mines in Central and Eastern Europe have traditionally utilized a small portion of
their coal mine methane (CMM) for generating steam, Ukraine has become a regional leader in
installing the latest technology to expand the use of the gas for on-site power generation.
Being one of Europe‘s leading coal-producing countries, Ukraine is a founding member of the
United Nations-backed Methane to Markets Partnership, an international initiative supporting the
cost-effective recovery and utilization of methane, a potent greenhouse gas. Recycling the gas to
generate on-site power can offer significant economic benefits.
When the Krasnoarmeiskaya Zapadnaya project reaches full operation, it is expected to potentially
reduce the equivalent of more than two million tons CO2 emissions per year, compared to venting
the gas into the atmosphere – qualifying the plant for carbon emission trading certificates.
“Ukraine is encouraging its coal mines to modernize their operations, including the use of mine gas
as a new source for on-site power to improve energy efficiency and support the nation‘s economic
and energy security objectives,“ said Alex Pavlov, GE’s Jenbacher gas engine Sales Manager for the
Ukraine. “GE is helping operators accomplish this goal by supplying Jenbacher specialty gas
engines to help lower their energy costs and reduce methane emissions.
“Generating nearly 129 MW of power with mine gas could save about 122 million cubic meters of
natural gas a year,” Pavlov noted.
The project will also enhance workplace safety in the mine. As part of the mine’s new gas utilization
initiative, the operator is installing an improved mine gas ventilation system, which will further
improve worker safety. By capturing mine gas for on-site power, less of the gas will be available to
mix with oxygen and create a potentially explosive combination—one of the most significant
hazards that coal miners face.
The power project’s engineering and procurement contractor (EPC) Sinapse CHNPP of Kiev secured
the framework agreement to install up to 20 of GE’s 3-MW, JMS 620 GS-S.L. systems, which are
designed specifically for projects with low methane contents. Sinapse is also GE’s authorized
Jenbacher engine distributor for the region.
The cogeneration units will operate in parallel to the local grid. The mine gas-fueled plant will have
total electrical and thermal outputs of 60.9 MW and 67.8 MW, respectively, with the electrical and
thermal power being used to support mine operations.
The Jenbacher units are scheduled to be delivered to the site between 2008 and 2011. GE is also
supplying a complete heat utilization system, emergency cooling, control and synchronization
system, as well as start-up and commissioning.
Long term service for the Jenbacher units will also be provided by Sinapse, enhancing the value of
this alternative energy project.
The Ukraine coal mine industry has now ordered a total of 44 of GE’s J620 GS Jenbacher gas
engines for several CMM projects. GE’s previous successful installations were a factor in
Krasnoarmeiskaya Zapadnaya selecting the Jenbacher units for its CMM project.
About GE Energy’s Jenbacher Gas Engines
GE Energy's Jenbacher gas engine business, based in Jenbach, Austria, is a leading manufacturer
of gas-fueled reciprocating engines, packaged generator sets and cogeneration systems for power
generation.
Jenbacher engines cover an output range of 0.25 to 4 MW and operate on natural gas or a variety
of specialty fuels, including flare gas and coal mine gas or alternative fuels like biogas, landfill gas,
wood gas, sewage gas and industrial waste gas. Patented combustion systems coupled with
advanced engine and plant management systems enable customers to meet stringent
international emission standards while offering high levels of efficiency, durability, and reliability.

Source: press-release from GE Energy

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