Green Gas to provide new coal mine gas degasification and utilization system in Ukraine to eliminate methane emissions

Green Gas International ("Green Gas") announces the conclusion of an agreement with Krasnodonugol, a subsidiary of the mining and steel group Metinvest, to utilize Coal Mine Methane captured at its Sukhodolska-Vostochnaya coal mine, in Krasnodon, Ukraine. The project is expected to be operational by fourth quarter 2010 and to yield some 20 million m³ per annum of methane gas which will enable annual greenhouse gas emission reductions equivalent to a range of 200,000 to 250,000 tonnes of CO2 per annum.

The Sukhodolska-Vostochnaya mine adds to Green Gas' expanding business in Eastern Europe and particularly in the Czech Republic. The mine currently operates at depths of up to 1,000 metres. This activity is made more hazardous by the natural presence of abundant Coal Mine Methane which is captured by ventilation and gas drainage systems. An ongoing improvement of those systems to increase safety is an ultimate priority for Krasonodonugol.

Drawing on more than 40 years combined experience in the design of coal mine degasification systems, Green Gas will provide a bespoke solution to eliminate the problem of increased methane emissions at the mine. As a result, coal production will be enhanced, and mine safety will be increased. Through enhanced gas drainage, a stable and dependable source of methane will become available to provide heat and power for the mine. Surplus revenues will also be generated from the monetization of emission reductions at the mine, as provided for under the Kyoto Protocol.

Bob Shekleton, Group Chief Operating Officer of Green Gas, said:
"Our partnership with Krasnodonugol is an important step to increase coal mine safety in Ukraine. Our expertise provides an effective and commercially attractive solution to mine gas mitigation for mine owners."

Alexander Potapenko, General Director of Krasnodonugol, commented:
"Krasnodonugol's priority is to make its mines as safe as possible. To achieve this, we are committed to applying the best world standards and practices. Green Gas' extensive international experience in the field of degasification, which employs advanced Kyoto Protocol mechanisms, will enable our Company to become more reliable, environmentally friendly and safe".