Economic Viability of a Pilot-Scale Catalytic Ventilation Air Methane Oxidation Plant Used in Coal Mines

Methane is one of the most potent greenhouse gases, with a Global Warming Potential (GWP100) 27.9 times greater than that of CO2 when measured as carbon dioxide equivalent. Therefore, the development and implementation of effective methods for reducing methane emissions are crucial for environmental protection, especially when these methods also provide additional technical or economic benefits. This article presents the results of an economic efficiency analysis conducted for a pilot-scale installation developed to reduce climate hazards in coal mines, based on a reactor for the catalytic oxidation of ventilation air methane. The economic feasibility of this installation operating under real conditions in underground coal mines was evaluated, and the analysis is based on actual operational data. The analysis was performed using a differential financial model. The capital and operating expenditures of the pilot-scale installation were compared with the costs of purchasing, installing, and operating a standard MK-500 cooling unit commonly used in Polish coal mines. The following economic efficiency indicators were obtained for the determined cash flows: Net Present Value (NPV) of 1.66 m EUR and Internal Rate of Return (IRR) of 24.6%. The results indicate that the pilot-scale technology becomes economically viable solely through the avoidance of methane emission penalties. The analysis identified the cost and macroeconomic parameters necessary for the economic viability of the technologies studied and established the methane emission penalty threshold at which operating the catalytic methane oxidation reactor system becomes justified (EUR 638/Mg CH4). The paper presents the factors with the greatest and least impact on the economic efficiency of the analyzed pilot-scale installation. The proposed pilot-scale approach offers a realistic pathway for combining greenhouse gas mitigation with operational stability in underground mining.