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The "first killer" of coal mines will become an important energy source. The "Eleventh Five-Year Plan" to accelerate the industrialization of coal bed methane
The reporter learned from the China Coal Industry Association on the 13th that coalbed methane (CBM) development and utilization have been officially incorporated into the "Eleventh Five-Year Plan" energy strategy. The government is set to provide financial support and policy incentives for CBM exploration and production. Meanwhile, the National Development and Reform Commission and the Ministry of Land and Resources are currently conducting a comprehensive national resource assessment. Strengthening CBM development is expected to play a crucial role in the country’s energy future.
Zhu Deren, vice president of the China Coal Industry Association, explained that coalbed methane, also known as coal gas, is an unconventional natural gas formed during the coalification process. It is primarily found within coal seams and can be used for power generation, vehicle fuel, and chemical production. However, it is also a major contributor to the greenhouse effect and poses a serious threat to coal mine safety. In recent years, most coal mine accidents in China have been caused by gas explosions, highlighting the urgent need for better CBM management.
China's CBM resources, located below 2,000 meters, are estimated to range between 30 to 35 trillion cubic meters, ranking third globally—comparable to conventional natural gas reserves. Major coal-producing countries around the world are increasingly focusing on CBM as both a clean energy source and a way to reduce carbon emissions. For instance, under the Kyoto Protocol, the World Bank Carbon Fund recently purchased a 4.5-million-ton carbon dioxide reduction target from China's Shanxi Coal Group over a 10-year period, paying $19 million for the deal.
Despite its vast potential, China has historically lagged in CBM development, leaving a significant safety risk in coal mining operations. However, with growing energy demands and environmental concerns, the country has started prioritizing the industrialization of CBM. In May 2000, China launched its first CBM cooperation project in the Huaibei coalfield in Anhui Province, with a total investment of $500 million. It is expected to produce 500 million cubic meters of CBM annually. More recently, state authorities approved a CBM project in Shanxi with an investment exceeding 2 billion yuan.
Additionally, the U.S.-led "Methane to Market Strategic Partnership Program," launched in November last year, has officially included China among its 13 member states. These developments signal that during the Eleventh Five-Year Plan period, China's CBM industry will see accelerated growth.
However, according to Zhu Deren, several challenges remain. These include limited technological capabilities, insufficient exploration efforts, and the high risks associated with investment in CBM projects. Addressing these issues will be critical to unlocking the full potential of this valuable energy resource.