News: Rotherham offered up for fracking

Four large blocks of land covering the majority of the borough of Rotherham have been offered to leading names in the energy exploration industry as the Government pushes ahead with making shale gas a part of the UK's energy mix.

A type of natural gas, shale gas has the potential to become an important energy source for the UK, as it is in the US, but extracting the gas using a method called "fracking" (hydraulic fracturing) has negative environmental impacts.

In 2013, an independent survey identified that the whole borough of Rotherham could be sitting on reserves of shale gas. Now the Oil & Gas Authority (OGA) – the UK's oil and gas regulator – has announced that 27 onshore blocks will be offered to companies.

Petroleum Exploration and Development Licences (PEDLs), provide the first step to starting drilling – but do not give absolute agreement to drill. On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive.

Caudrilla, the company hoping to secure planning permission in Fylde, Lancashire, has been offered block SE40f which covers areas of Wath and Manvers. Alkane Energy plc generates energy from coal mine methane (CMM) at Manvers and recently submitted a planning application that would allow it to drill into the previous coal mine workings in the Dearne Valley in the search of further energy sources.

Caudrilla said that for the next year activity in these new exploration licence areas will largely centre on desktop studies and in some cases carrying out seismic surveys. This will give the company detailed data on the geology deep underneath the licence areas, helping to assess where exploration sites could subsequently be located.

Francis Egan, CEO of Cuadrilla, said: "We are very pleased to be offered these new exploration licences. Whilst we continue to progress our shale gas exploration work in Lancashire, we welcome the potential for exploration in Yorkshire along with the associated benefits of new jobs and economic growth we believe it will bring.

"Our first priority will be to talk with local communities. We recognise that some members of the public will have concerns and there continues to be a good deal of misinformation circulated regarding onshore shale exploration. We have a responsibility to ensure people understand the facts and are not misled by harmful scaremongering. Onshore exploration and fracking can and will be done safely, securely and in an environmentally responsible way."

IGas has been offered block SK49 which covers Swinton, Kilnhurst, Rawmarsh, Parkgate, Greasborough, Kimberworth, Thrybergh, Ravenfield, Eastwood, the town centre, Flanderwell, Bramley, Wickersley, Herringthorpe, Canklow and Whiston.

IGas is partnering with Egdon Resources, the company which already owns the PEDL for the adjacent area around Maltby (PEDL043). Egdon is working with international energy firm, Total, who has already put forward £30m to deliver up to three shale gas wells in nearby areas. With other offered blocks, Total will have a 50% interest and Egdon a 15% interest. IGas will be operator of the licences with a 35% interest.

SK48 has been offered to INEOS and includes Brinsworth, Catcliffe, Treeton, Waverley, Thurcroft, Ulley, Aughton, Aston, Todwick, Wales, Rother Valley and Harthill.

INEOS has also been offered SK58a which includes Dinnington, North Anston, South Anston, Woodsetts and Thorpe Salvin. SK58a is adjacent to the already approved PEDL200 that covers Firbeck, Laughton en le Morthern and parts of Thurcroft and Dinnington and is owned by Dart Energy.

Gary Haywood, INEOS Shale CEO, said: "Shale gas is a once in a lifetime opportunity that the UK cannot afford to miss. North Sea oil created great wealth for the UK and shale gas can do the same. It will help secure manufacturing, deliver investment and create thousands of jobs, provide us with greater energy security, and help us to meet our climate change obligations using our own home-grown source of energy."

A second group of licence block awards are expected to be made later in the year following the conclusion of the Habitats' consultation. These blocks are likely to include the rest of the borough not already covered such as Hellaby, Thorpe Hesley and Wentworth.

UK Energy Minister Lord Bourne said: "As part of our long-term plan to build a more resilient economy, create jobs and deliver secure energy supplies, we continue to back our onshore oil and gas industry and the safe development of shale gas in the UK. This is why the OGA has moved quickly to confirm the winners of licence blocks which do not need further environmental assessment.

"Keeping the lights on and powering the economy is not negotiable, and these industries will play a key part in providing secure and reliable energy to UK homes and businesses for decades to come.

"It's important we press on and get shale moving, while maintaining strong environmental controls. Investment in shale could reach £33 billion and support 64,000 jobs creating financial security for hardworking people and their families, whilst providing a cost-efficient bridge to lower-carbon energy use."

Shale gas planning applications are set to be fast-tracked through a new, dedicated planning process. Previous announcements include offers of £100,000 for communities situated near each exploratory well, and 1% of revenues from every production site.

Oil & Gas Authority website

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News: Alkane submits plans for test drilling in Manvers

Alkane Energy plc, one of the UK's fastest growing independent power generators, has submitted a planning application that would allow it to drill into the previous coal mine workings in the Dearne Valley in the search of a potential energy source.

Regent Park Energy Limited, previously called Green Park Energy before it was acquired by Alkane in 2012, operates Manvers Energy Park off Golden Smithies Lane at Swinton, where energy is generated from coal mine methane (CMM). As a power response site, electricity is produced at times of high electrical demand through peak running, or in order to balance the electricity grid through participation in the National Grid's short term operating reserve programme (STOR).

Now, the applicants are hoping to tap into another energy source by assessing if heat can be recovered from minewater to heat nearby buildings.

Ground source heat pumps are increasingly being considered as a means to provide heating and cooling for buildings. Technology allows the upgrade of ambient heat from the ground (in this case minewater) to high-temperature heat suitable for space heating. Abandoned mine voids, at depth, often contain relatively warm water, which is typically at between 12º C to 20º C.

The water is pumped from underground and used in heat exchangers and heat pumps, which will be able to operate at significantly higher efficiencies than would normally be the case with a variable heat source. The water is returned cooler to the mine workings at another point.

Planning permission is being sought to drill a temporary water abstraction borehole into the coal mine workings of the Meltonfield Seam, the base of which is around 110m deep.

Controlled abstraction and evaluation for ground source heating / cooling purposes would be carried out over a three year period and consideration is being given to the possible future utilisation of ground source heat pumps from minewater in the adjacent commercial buildings.

A similar scheme operates at Alkane's site at the former Markham Colliery where minewater is extracted and used to heat part of an adjacent depot building at Markham Vale.

The land is adjacent to the existing Maltby Energy Park and is within the Green Belt.

Alkane Energy is one of the UK's largest independent power producers providing both base load generation from coal mine methane and a network of peak pricing power response assets using bought in natural gas. Output has increased to 195GWh in 2014 which is enough to supply circa 75,000 homes.

The Mansfield firm paid £7.5m to buy CMM assets at the former Maltby Colliery in Rotherham from operators Hargreaves Services. Energy from the assets could be generated for an estimated period of up to 15 years. In June 2014 Alkane transferred its shale gas interests to Egdon Resources plc. It received 40 million Egdon shares making it the largest shareholder in Egdon, the UK's third largest shale operator.

Alkane's pre-tax profit for the year to December 31 2014 rose to £3.2m from £2.6m a year earlier. Revenues fell by 22% to £16m.

Alkane website

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News: New plans for Maltby's restoration

New plans are being prepared for the restoration of the mothballed Maltby pit site in Rotherham.

The 200 hectare colliery at Maltby was mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013.


Owners and operators, Hargreaves decided to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health and safety, geological, and financial grounds.

The winding tower was brought down last year and the mine shafts have been filled and capped. The future restoration scheme, included in the planning permission for the mine's operation, is "subject to some uncertainty" as the underground workings came to a premature end. Hargreaves had planned to import 675,000 tonnes of mine runoff fines, known as MRF, from nearby Hatfield Colliery and deposited in the current lagoon at Maltby. MRF is a fine slurry-like material which is formed during the washing and reclamation of coal fines (tiny coal particles).

Up until the end of October 2014, a total of approximately 400,000 tonnes of MRF had already been deposited at Maltby but members of the planning board refused the planning application for the importation of material. After the decision was made in December, enforcement action was authorised, and the operators were ordered to stop importing MRF to the site. Hargreaves is appealing against enforcement action authorised by Rotherham Council.

Now Rotherham Council has been forced to formally request a revised scheme of restoration and aftercare from Hargreaves in relation to the conditions of a previous planning permission. The site sits within the borough's Green Belt and Phase 1A of the restoration is set to focus on creating an amenity grassland on the 5.74 hectares to the south west of the site.

The importation of materials is set to create a finished land level "nominally above existing levels" and form part of the wider restoration scheme.

Despite being refused plans to import MRF to the site, Hargreaves intends to import restoration materials into Maltby now that material is no longer coming from the underground workings. This is set to include a limited range of material types which has been submitted to the Environment Agency (EA) for approval, including waste types from a list predetermined by the EA.

The MRF application was refused by the planning board, against the recommendations of the planning officer. The board concluded that "the importation of material to the site represents inappropriate development in the Green Belt as it does not relate to the material produced from the Maltby Colliery itself and as the engineering operations would not preserve the openness of the Green Belt. No very special circumstances have been demonstrated by the applicant to justify the harm and there is no indication that the operation would assist with the long term restoration of the site."

In addition, "the Council considers that the HGV vehicle movements resulting from the development are detrimental to the amenity of residents living along the route from the M18 motorway to the site and on the town centre of Maltby itself, by virtue of noise nuisance, general disturbance, and the deposition of material in the highway. This traffic generation is not related to the essential mining operation on the site or on an approved site restoration programme for Maltby Colliery which might otherwise justify such traffic generation."

The updated restoration scheme is set to result in 32 HGV movements per day as opposed to the 60 expected for the original MRF importation.

Bill Firth, director of Hargreaves Environmental Services (HES), said: "The restoration at Maltby provides a number of opportunities across the Group. For example, we can recover redundant materials from some of our existing customers, whilst also securing new customers from the organic materials treatment and water sectors. Coupled with the transport of materials to site by our Logistics Division, we can provide an integrated supply chain that is reproducible at other Hargreaves coal mining assets."

The immediate future of the site is as Maltby Energy Park, with operator Alkane Energy generating energy from the coal mine methane assets for an estimated period of up to 15 years.

In the final draft of the council's Local Plan, the majority of the Maltby site is being put forward as remaining in the green belt with a pocket of development, which includes the pit yard, associated buildings and access, not considered suitable for a business park with offices or industrial units but instead used for "for waste and energy activities."

Egdon Resources, a leading player in shale gas exploration, recently acquired the interest in the current licence to explore for the controversial energy source at Maltby.

Hargreaves Services website

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News: Hargreaves confident despite market conditions

Mining and logistics firm Hargreaves Services, has seen profits fall in "unprecedented" market conditions and incurred losses associated with the discontinued operations at Maltby Colliery in Rotherham.

Reporting its financial results for the six months to November 30, revenues at the Durham group dropped 23.7% to £351.2m. Underlying pre-tax profit was down 28.8 per cent to £20.3m. Hargreaves said that it had faced a number of significant challenges arising from the well documented weakness in the coal price and turmoil in coal and coke markets.

The board of Hargreaves said that it was still confident in continuing overall profit and cash generation even through this difficult period.

The 500 acre colliery at Maltby was mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013.

Regarding Maltby, the report said: "The loss of £1.1m for the period from discontinued operations largely related to costs incurred at Maltby Colliery as part of the overall restoration programme. As previously reported, the mine shafts have been filled and capped and the Group has now received formal certification that this has been completed.

"The process to sell the underground equipment continues; there have been a number of enquiries and a further £1.7m of realisations have been achieved during the period leaving a net residual book value to recover of £5m. The Group remains confident of achieving in excess of book value for the assets but notes that low commodity prices have further depressed the mining equipment markets."

The future restoration scheme is "subject to some uncertainty" as the underground workings came to a premature end. Hargreaves had planned to import 675,000 tonnes of mine runoff fines, known as MRF, from nearby Hatfield Colliery and deposited in the current lagoon at Maltby. MRF is a fine slurry-like material which is formed during the washing and reclamation of coal fines (tiny coal particles).

Up until the end of October 2014, a total of approximately 400,000 tonnes of MRF had already been deposited at Maltby but members of the planning board refused the planning application for the importation of material. After the decision was made in December, enforcement action was authorised, and the operators were ordered to stop importing MRF to the site. Hargreaves is appealing against enforcement action authorised by Rotherham Council.

The immediate future of the site is as Maltby Energy Park, with operator Alkane Energy generating energy from the coal mine methane assets for an estimated period of up to 15 years.

Egdon Resources, a leading player in shale gas exploration, recently acquired the interest in the current licence to explore for the controversial energy source at Maltby.

In the final draft of the borough's Sites and Policies document the majority of the 200 hectare site is earmarked to remain in the green belt. A pocket of development, which includes the pit yard, associated buildings and access, is not considered suitable for a business park with offices or industrial units but instead used for "for waste and energy activities."

Hargreaves website

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News: Maltby pit plans set for approval

Revised plans to import tonnes of material to the mothballed Maltby pit site in Rotherham from nearby Hatfield Colliery are being recommended for approval, subject to a number of conditions.

The 500 acre colliery at Maltby was mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013. Owners, Hargreaves Services continued to provide management services and support from Maltby to Hatfield Colliery in Doncaster.

A planning application was submitted in September to Rotherham Council by Maltby Colliery Ltd (Hargreaves) to allow for 450,000 tonnes of mine runoff fines, known as MRF, to be transported each year from Hatfield and deposited in the current lagoon at Maltby. MRF is a fine slurry-like material which is formed during the washing and reclamation of coal fines (tiny coal particles). It made up much of the 1.4m tonne landslip at Hatfield in February 2013 and without anywhere to deposit the MRF, the mine would eventually close.

The temporary period covered already begun in April 2013 and the lagoon was due to be filled anyway as part of the colliery's restoration plan. The permission would have equated to a total potential import of 2.25 million tonnes of material but after a recent public meeting, further discussions held with Rotherham Council and approval granted for an additional spoil tip Hatfield, the Maltby plans have been amended.

The proposal now relates to the importation of material up until October 2015, with a maximum import level of 275,000 for the remaining year of operations. Up until the end of October 2014, a total of approximately 400,000 tonnes of MRF had already been deposited at Maltby. This would result in a total of up to 675,000 tonnes, considerably less than originally proposed.

Nearby residents have already raised concerns over the height of the tip, the possibility of landslips, and the impact on the highways of the estimated 60 HGV movements per day.

Despite operating as a colliery, the site is within the green belt and very special circumstances have to demonstrated in order for planning permission to be granted. Planners were satisfied and are recommending to members of the planning board that permission be granted as the operation is only temporary, material would have been collected from the mining operation at Maltby anyway, the deposits will assist with the wider future restoration of the site, and the reduced total amount will have "no discernible visual effect."

A report to the planning board concludes: "In summary, it is considered that very special circumstances exist to justify the harm to the Green Belt by reason of inappropriateness, and the other harm associated with the proposal. It is not considered that the traffic created would be detrimental in highway safety terms, whilst in terms of noise, dust, and pollution issues these matters have been concluded to be within acceptable parameters."

The mine shafts have been filled and capped and the immediate future of the site is as Maltby Energy Park, with operator Alkane Energy generating energy from the coal mine methane assets for an estimated period of up to 15 years.

In the final draft of the council's Local Plan the majority of the Maltby site is being put forward as remaining in the green belt with a pocket of development, which includes the pit yard, associated buildings and access, not considered suitable for a business park with offices or industrial units but instead used for "for waste and energy activities."

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News: Maltby planning to take in tonnes of Hatfield material

Underground workings may have ended at Rotherham's Maltby Colliery last year but the spoil heap may continue to be added to under plans to deposit 2.25 million tonnes of material from nearby Hatfield Colliery.

The 500 acre colliery at Maltby was mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013. Owners, Hargreaves Services continued to provide management services and support from Maltby to Hatfield Colliery in Doncaster.

In December 2013, the business and assets of Hatfield Colliery Limited were acquired by a new employee's trust and Hargreaves' mine management contract was terminated. The National Union of Mineworkers (NUM) subsequently agreed to invest £4m in the Hatfield business by providing a commercial loan to extend the life of the mine, which is the last deep coal mine in the country not to have announced closure.

Now a planning application has been submitted to Rotherham Council by Maltby Colliery Ltd (Hargreaves) to allow for 450,000 tonnes of mine runoff fines, known as MRF, to be transported each year from Hatfield and deposited in the current lagoon at Maltby.

The temporary permission would be five years and MRF is already being brought to Maltby from Hatfield. The lagoon was due to be filled anyway as part of the colliery's restoration plan.

MRF is a fine slurry-like material which is formed during the washing and reclamation of coal fines (tiny coal particles). It made up much of the 1.4m tonne landslip at Hatfield in February 2013.

Nearby residents have already raised concerns over the height of the tip, the possibility of landslips and the impact on the highways of the estimated 60 HGV movements per day.

The mine shafts have been filled and capped and the immediate future of the site is as Maltby Energy Park, with operator Alkane Energy generating energy from the coal mine methane assets for an estimated period of up to 15 years.

Alkane has recently been awarded a demand side contract with the National Grid to supply 56Mw capacity to cover the winter peak period from 4pm to 8pm each weekday between November and February, with Alkane to receive a two hour warning if it will be needed.

Hargreaves Services website

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News: Hargreaves pleased with progress in closing Maltby

Hargreaves Services plc, the UK's leading supplier of solid fuels, has reported that the mine shafts have been filled and capped as part of the overall restoration programme at Maltby Colliery in Rotherham.

The 500 acre colliery was mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013. It had around 500 staff.

Owners and operators, Hargreaves decided to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health and safety, geological, and financial grounds.

In its latest financial results, Hargreaves said that the closure programme continues in line with plan and that the mine shafts have been filled and capped as part of Maltby's overall restoration programme and that it just waiting on formal certification of this completion.

Maltby's No 3 Winding Tower met with an explosive end in July as a number of disused and redundant colliery buildings were demolished.

In a statement, the board of Hargreaves said that it "is very pleased with the progress that has been made in closing the Maltby operation and thanks all the staff and other stakeholders involved. The project has been completed on time, on budget and to a high quality."

A number of Maltby miners successfully transferred across to Hatfield Colliery near Doncaster, which Hargreaves previously managed on behalf of its owners. A large number of skilled workers were recruited to the group's contracting arm, Hargreaves Technical Resources.

Hargreaves added that it is working hard with local authorities to "optimise the value of land to the Group and to the local community."

The immediate future of the site is as Maltby Energy Park, with operator Alkane Energy generating energy from the coal mine methane assets for an estimated period of up to 15 years.

Alkane Energy paid £7.5m to buy coal mine methane (CMM) assets at Maltby from Hargreaves Services last year. £2m will be paid to acquire additional site infrastructure assets six months after the mine shafts are satisfactorily sealed as part of the planned closure of Maltby Colliery. This is expected to occur by October 2014.

Now operating at full production, some 115 million cubic metres of pure methane will be extracted from the mine void and the coal left underground.

Alkane said in its latest financial results that current output from Maltby is ahead of expectations and that they expect production in the second half to compensate for the delayed shaft sealing operations.

Rothbiz reported last month that Alkane had completed a multimillion pound deal with Egdon Resources, a leading player in shale gas exploration, for the interest in the current licence to explore for the controversial energy source in Rotherham.

Hargreaves website
Alkane Energy website

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News: Egdon acquires Rotherham shale gas interest

Egdon Resources, a leading player in shale gas exploration, has acquired the interest in the current licence to explore for the controversial energy source in Rotherham.

The Hampshire firm has concluded a £6m deal with independent power generators, Alkane Energy to take on an interest in Petroleum Exploration and Development Licences (PEDLs) relating to the deeper section which contains shale gas and conventional oil and gas potential.


Alkane owns the PEDL for the area around Maltby, which extended to all of the hydrocarbons recoverable from the licence area. So far Alkane has been focusing on the extraction of coal mine methane at the former Maltby Colliery that does not involve any form of "fracking" or any other processes of well stimulation associated with coal bed methane or shale gas extraction. The methane is produced by coal left underground, following conventional mining operations carried out over the years the mine was in operation.

Following recent approval by the Government, Egdon Resources has acquired all rights and interests relating to shale gas under the PEDL043 area (which covers Maltby, Braithwell and Conisbrough), a licence which Egdon believes is one of three acquired that has the most shale gas potential.

Egdon is working with international energy firm, Total, who have put forward £30m to deliver up to three shale gas wells, subject to obtaining the necessary consents, in other nearby PEDLs in the "Gainsborough Trough", an area identified by the British Geological Survey as having organic-rich shale underground, and an area which PEDL043 and Maltby are also in.

Dart Energy owns PEDL200 that covers Firbeck, Laughton en le Morthern and parts of Thurcroft and Dinnington. It has a similar agreement with GDF Suez for 13 licence areas including PEDL200 for drilling exploration wells for coal bed methane and shale gas.

A type of natural gas, shale gas has the potential to become an important energy source for the UK, as it is in the US, but extracting the gas using a method called fracking (hydraulic fracturing) has negative environmental impacts.

The government recently opened the bidding process for companies seeking licences to explore for shale gas under the rest of Rotherham.

The licences provide the first step to starting drilling – but do not give absolute agreement to drill. On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive.

Alkane Energy paid £7.5m to buy coal mine methane (CMM) assets at Maltby from operators Hargreaves Services last year. It is set to make a further payment of £2m to acquire additional site infrastructure assets six months after the mine shafts are satisfactorily sealed as part of the planned closure of Maltby Colliery. With demolition underway, this is expected to occur by October 2014.

The Maltby site was off-line for the majority of the spring period as the planned closure of the colliery was being completed. However it has now returned to production and Alkane as a whole has generated record weekly baseload output in recent weeks.

It is estimated that over the anticipated 15 year life of the project, some 115 million cubic metres of pure methane will be extracted from the mine void and the coal left underground.

The shale under Maltby is below the coal deposits that were mined for over 100 years until geological conditions could not be overcome and underground operations ceased in 2013.

Alkane Energy website
Egdon Resources website

Images: Egdon Resources / British Geological Survey

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News: License to frack in Rotherham

The government has opened the bidding process for companies seeking licences to explore for shale gas, the controversial energy source, underneath Rotherham.

Business and Energy Minister Matthew Hancock published details of how companies can apply for licences which will enable them to start initial exploration in large areas of the UK.

The British Geological Survey published results last year of the first independent study of the potential volume of shale gas in the Bowland Basin and beyond, which covers 11 counties in the North of England including South Yorkshire.

The survey identified that the whole borough of Rotherham could be sitting on reserves of shale gas and scientists have estimated on a central scenario that there is likely to be some 40 trillion cubic metres (1,300 trillion cubic feet) of shale gas in the ground in the Bowland Basin.

While this does not mean that this amount could be extracted for use, this will provide investors, operators and regulators with an indication of where to target future exploratory drilling, so that they can determine how much of the gas would be able to be commercially recovered. This is expected to be substantially lower than the total amount of gas in place because of technical and commercial limitations on the level of extraction.

A type of natural gas, shale gas has the potential to become an important energy source for the UK, as it is in the US, but extracting the gas using a method called "fracking" (hydraulic fracturing) has negative environmental impacts.

The licences provide the first step to starting drilling – but do not give absolute agreement to drill. On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive.

Business and Energy Minister Matthew Hancock said: "Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth. We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy. As one of the cleanest fossil fuels, shale gas can be a key part of the UK's answer to climate change and a bridge to a much greener future."

Companies have pledged to engage with communities early and to provide community benefits in areas where shale is commercially extracted.

These will include £100,000 for communities situated near each exploratory well, and 1% of revenues from every production site.

Two licences have already been granted that cover areas of the Rotherham borough. Alkane owns the Petroleum Exploration and Development Licence (PEDL) for the area around Maltby, which extend to all of the hydrocarbons recoverable from the licence area. So far Alkane has been focusing on the extraction of coal mine methane at the former Maltby Colliery that does not involve any form of fracking or any other processes of well stimulation associated with coal bed methane or shale gas extraction. The methane is produced by coal left underground, following conventional mining operations carried out over the years the mine was in operation.

Dart Energy owns the PEDL that covers Firbeck, Laughton en le Morthern and parts of Thurcroft and Dinnington. Anti-fracking campaigners have been keeping a close eye on Dart operations at nearby Bawtry.

Alkane Energy website

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News: Pit's future as Maltby Energy Park

Maltby Colliery, which closed in March 2013 after more than 100 years of underground operations, is set to become The Maltby Energy Park, "a compact "green" alternative energy facility with minimal impact on the surrounding environment."

Alkane Energy plc, one of the UK's fastest growing independent power generators, paid £7.5m to buy coal mine methane (CMM) assets at Maltby from operators Hargreaves Services last year. Alkane is set to make a further payment of £2m to acquire additional site infrastructure assets six months after the mine shafts are satisfactorily sealed as part of the planned closure of Maltby Colliery. With demolition underway, this is expected to occur by October 2014.

Maltby has reserves of an estimated 328 million cubic metres of coal mine methane, which Alkane is already extracting and using to generate electricity. Methane extracted from the mine for safety reasons has, for some years, been used to generate electricity on the site for exportation to the gird. Plans have now been submitted to retain some of the existing plant and equipment to extract methane from a pipeline which has been left in the last colliery shaft that has not yet been capped.

A decision was made to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health and safety, geological, and financial grounds.

The Maltby site occupies 500 acres and employed over 500 staff and contractors. The new operation will be totally different, designed to operate automatically without the need for people to be on site, except for maintenance or repair. The equipment will be managed remotely at Alkane's Markham Vale Depot and Control Centre.

If the plans are approved, the generation of electricity would be carried out 24 hours per day, seven days per week for an estimated period of up to 15 years. It is envisaged that once mine gas extraction ceases, the site will be restored to amenity or some other use. The council and Hargreaves have been in discussions regarding how the site fits into the council's Local Plan which sets out policies and proposals for new housing, shopping and employment.

Regent Park Energy Limited, previously called Green Park Energy before it was acquired by Alkane in 2012, also operates the Manvers CMM fuelled generation facility near Swinton.

Alkane has more than 800 sq km of acreage under various onshore Petroleum Exploration and Development Licences (PEDLs). Alkane retains a 100% interest in the majority of these PEDLs, which extend to all of the hydrocarbons recoverable from these licence areas. This includes any CMM, natural gas, coal bed methane (CBM) or shale gas. Alkane has the licence for PEDL 43, which covers the Maltby site, but is yet to come forward with plans to extract shale gas by the controversial method of hydraulic fracturing (fracking) and continues to focus on the coal mine methane.

The extraction of coal mine methane does not involve any form of fracking or any other processes of well stimulation associated with coal bed methane (CBM) or shale gas extraction. The methane is produced by coal left underground, following conventional mining operations carried out over the years the mine was in operation.

The plans state: "It is estimated that over the anticipated 15 year life of the project, some 115 million cubic metres of pure methane will be extracted from the mine void and the coal left underground.

"Full production, of up to 10 MW (Mega Watts) of electricity, from the eight generator engines currently on the site is expected to continue until at least May/June 2015. In the remaining life of the project, there is expected to be a slow progressive reduction in CMM extraction, as the methane, within the coal left underground, depletes.

"After about 15 years all the gas that can be recovered economically should have been extracted. However, it is not possible to be precise, so the above figures are given as a guide only.

"If all goes according to plan, there should be enough gas to generate in the region of 445,000 Mega Watt Hours (MWh), of electricity, over the life of the project."

Alkane website

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News: Alkane's plans for Maltby pit

Alkane Energy plc, one of the UK's fastest growing independent power generators, is applying for planning permission for producing energy at the Maltby Colliery site in Rotherham.

The Nottinghamshire company operates mid-sized "gas to power" electricity plants providing both predictable and fast response capacity to the grid.

£6m in equity funding was raised to complete a £7.5m deal to buy coal mine methane (CMM) assets at Maltby from Hargreaves Services last year. Alkane is set to make a further payment of £2m to acquire additional site infrastructure assets six months after the mine shafts are satisfactorily sealed as part of the planned closure of Maltby Colliery. This is expected to occur by October 2014.

Maltby has reserves of an estimated 11.6 billion cubic feet of coal mine methane, which Alkane is already extracting and using to generate electricity. With eight CHP engines, the site has an existing installed capacity of 11.2MW and when it acquired the site, Alkane said that it hoped to expand CMM operations.

So far, The Maltby operations have been performing ahead of plan, taking Alkane's total group output to 192GWh, up 15% on 2012.

Underground operations ended in March 2013 at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.

A decision was made to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health and safety, geological, and financial grounds.

Now Regent Park Energy Limited, previously called Green Park Energy before it was acquired by Alkane in 2012, is applying to Rotherham Council to "retain gas pipelines, mine gas extraction pump house, containerised generation plant and ancillary equipment, extract mine gas and generate electricity."

The firm is currently contacting nearby landowners and tenants about the plans.

Alkane has more than 800 sq km of acreage under various onshore Petroleum Exploration and Development Licences (PEDLs). Alkane retains a 100% interest in the majority of these PEDLs, which extend to all of the hydrocarbons recoverable from these licence areas. This includes any CMM, natural gas, coal bed methane (CBM) or shale gas. Alkane has the licence for PEDL 43, which covers the Maltby site, but is yet to come forward with plans to extract shale gas by the controversial method of hydraulic fracturing (fracking) and continues to focus on the coal mine methane.

In its preliminary results for the year ended 31 December 2013, Alkane reported that, revenue had grown by 40% to £20.6m compared to the previous year and that adjusted profit before tax increased by 17% to £3.4m.

Neil O'Brien, CEO of Alkane, said: "The UK energy market is facing a number of challenges including the decline of generating capacity with increased risks of power shortages over the coming years. Alkane is well positioned and will continue to develop its business to take advantage of the changing dynamics of the UK power industry."

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News: Maltby powers strong trading for Alkane

Alkane Energy, one of the UK's fastest growing independent power generators, has reported strong trading performance for 2013, the year it began producing energy at the Maltby Colliery site in Rotherham.


The Nottinghamshire company operates mid-sized "gas to power" electricity plants providing both predictable and fast response capacity to the grid. It raised £6m in equity funding to complete a £7.5m deal to buy coal mine methane (CMM) assets at Maltby last year.

Now the UK's largest generator of electricity from CMM, Alkane posted a trading update for the six months ended December 31 2013 showing that performance has remained strong with output increasing 15% year on year. For the period, the group said that it expects to deliver electricity of circa 192 GWh, compared to 167 GWh in 2012.

The boost in output was due to the 11MW Maltby operations which Alkane said is performing ahead of plan.

Underground operations ended in March 2013 at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.

A decision was made to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.

Neil O'Brien, chief executive officer at Alkane, said: "Alkane continues to invest in new facilities as the UK Electricity market faces an increased risk of an energy gap over the coming years. 

"2013 has seen the successful integration of the Maltby acquisition and improved performance from our Power Response sites. It has been our 10th successive year of output growth and we remain confident of future prospects."

The board at Alkane expect that the financial results for the year ended December 31 2013 will be in line with market expectations. In the six months ended 30 June 2013, Alkane reported that revenues more than doubled compared with the same period in the previous year from £5.3m to £11.1m. EBITDA (earnings before tax) rose to £3.3m from £2.1m.

Alkane has more than 800 sq km of acreage under various onshore Petroleum Exploration and Development Licences (PEDLs). Alkane retains a 100% interest in the majority of these PEDLs, which extend to all of the hydrocarbons recoverable from these licence areas. This includes any CMM, natural gas, coal bed methane (CBM) or shale gas. Alkane has the licence for PEDL 43, which covers the Maltby site, but is yet to come forward with plans to extract shale gas by the controversial method of hydraulic fracturing (fracking) and continues to focus on the coal mine methane.

In December, Alkane commenced generation at a new site on the Prince of Wales Colliery in Pontefract. It represented the fourth collaboration with Harworth Estates who are a regular partner to Alkane.

Based on the Advanced Manufacturing Park (AMP) in Rotherham, Harworth Estates is one of the largest landowners in the UK with access to over 30,000 acres of land.

Alkane Energy website

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News: Maltby closure going to plan

Hargreaves Services plc, the owner of Maltby Colliery in Rotherham, has given an update on the closure of the 100 year old mine in its latest financial report.

Maltby occupies a site of 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.

The owners confirmed mothballing in December last year following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.

Hargreaves said that the "closure programme at Maltby is progressing in line with plan, with the mine shafts expected to have been filled and capped by the end of the financial year as part of Maltby's overall restoration programme."

Management services and support to Hatfield Colliery in Doncaster was provided by Hargreaves from maltby but Hargreaves terminated this contract last week when the business and assets of Hatfield Colliery Limited were acquired by Hatfield Colliery Partnership Limited, a company ultimately owned and controlled by an Employee Benefit Trust.

Hargreaves has provided the new Hatfield owners with a short term option to acquire the underground production assets previously used at Maltby. Hargreaves remains confident that full value will be obtained in due course. With plant and equipment worth £34m, Hargreaves expected to realise £14m from its sale.

Maltby continues to trade. Tiny coal particles called "fines" are harvested and processed and specialist firm, Alkane Energy acquired the coal mine methane (CMM) assets to turn into energy.

Hargreaves recently secured planning permission for one of the storage buildings on the Maltby site to be used for general industry and become a new operation for manufacturing subsidiary, AJS Contracts Ltd.

Hargreaves Services website

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News: Maltby exceeds expectations for Alkane

Alkane Energy has stated that the acquisition of the coal mine methane (CMM) assets at Maltby Colliery in Rotherham, and the associated fundraising, has exceeded expectations.

The Nottinghamshire company operates mid-sized "gas to power" electricity plants providing both predictable and fast response capacity to the grid. It raised £6m in equity funding to complete a £7.5m deal to buy CMM assets at Maltby earlier this year.

Now the UK's largest generator of electricity from CMM, Alkane posted results for the six months ended 30 June 2013 that showed that revenues more than doubled compared with the same period last year from £5.3m to £11.1m. EBITDA (earnings before tax) rose to £3.3m from £2.1m in the same period in 2012 and group adjusted profit before tax increased to £1.4m from £1.0m.

Underground operations ended in March at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.

A decision was made to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.

Alkane's financial results stated that: "Both the acquisition of the Maltby CMM assets and the associated fundraising exceeded expectations. The placing was well supported by existing and new institutional investors and the acquired assets are performing ahead of plan.

"The acquisition of the 11MW CMM facility at Maltby Colliery was completed at the end of May 2013 and has moved into production earlier than plan. We are encouraged by early performance at Maltby and would expect output to be maximised following the full colliery closure which is expected during the summer of 2014."

Maltby's owners and operators, Hargreaves received an initial payment of £5.5m followed by up to a further £2m payable six months after the mine shafts have been filled and capped as part of the planned closure and restoration programme.

Neil O'Brien, CEO of Alkane Energy, said: "I am delighted to report another strong set of results for the Group with a significant increase in installed capacity as well as a 109% increase in revenue and a 54% increase in EBITDA.

"With the very real prospect of a shortfall in energy supply in the UK we will continue with our strategy of growing output and installed capacity. Furthermore our successful acquisition of the Maltby Colliery CMM assets and the £6m fundraising leave us well placed to support the Group's investment plans in its core gas to power activities."

Local residents have expressed concern that the operation could expand into the extraction of shale gas from the area using the controversial method of "fracking."

Alkane Energy website

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News: Alkane ahead of schedule at Maltby

Alkane Energy is ahead of schedule for the production of energy from methane at Maltby Colliery site in Rotherham.

The Nottinghamshire company operates mid-sized "gas to power" electricity plants providing both predictable and fast response capacity to the grid. It raised £6m in equity funding to complete a £7.5m deal to buy certain coal mine methane (CMM) assets at Maltby earlier this year.

In a recent trading update, the directors reported that: "The Maltby site is in its early changeover phase as mining operations are ceased at the colliery and we are delighted to report that we were able to achieve first production some five weeks ahead of the original plan."

Underground operations ended in March at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.

A decision was made to mothball the mine following no viable alternative solution being found to geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.

Without underground workings, Maltby will continue to trade with tiny coal particles called "fines" harvested and processed.

Owners and operators, Hargreaves received an initial payment of £5.5m followed by up to a further £2m payable six months after the mine shafts have been filled and capped as part of Maltby's planned closure and restoration programme. It is anticipated that these tasks will be completed during the first half of 2014.

Maltby has reserves of an estimated 11.6 billion cubic feet of coal mine methane, which Alkane will extract and use to generate electricity. With eight CHP engines, the site has an existing installed capacity of 11.2MW and Alkane hopes to expand CMM operations.

Alkane Energy website

Images: Alkane Energy

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