US EPA's Assistance ID No.CX824001-01-0 Support for Coalbed Methane Clearinghouse in The People's Republic of China SUMMARY REPORT

Coalbed methane is unconventional natural gas contained in coal seams. Its main composition is methane and 1m³ of coalbed methane is equal to 1.25 kg of coal equivalent based on heating value. Coalbed methane is also potent greenhouse gas with its global warming potential 21 times as much as that of CO₂. The importance of coalbed methane development and utilization has been well recognized with multi-benefits: to effectively reduce methane emissions from coal mining, improve mine safety and increase new clean energy supply.

China is rich in coalbed methane resources with total estimated amount of 30-35 billion m³ to a depth of 2000m below surface. Since 1950s, China has made rapid progress in recovery and use of coal mine methane. Up to 1998, 158 underground gas drainage systems have been established at coal mines with coalbed methane recovery of 742 million m³ annually,Advanced technologies for coalbed methane recovery by surface wells have been introduced to China since early 1990. So far, more than 150 surface wells have been drilled for methane exploitation in the country. Chinese government has attached emphasis on the development of coalbed methane industry and decided to include the development of coalbed methane in the China's 10th Five-year Plan(2001-2005) for Energy Development.

The government of the United States encourages Chinese coal mines to recover and use coalbed methane. In June 1994, the Chinese Ministry of Coal Industry (MOCI) and the US Environmental Protection Agency(EPA) reached an agreement on the establishment of a coalbed methane clearinghouse in China with financial support in total of US
65,5000 from the US EPA for 5 years from October 1, 1994 to September, 1999.The functions of the Clearinghouse include: 1) to improve the awareness of decision makers and mining officials to the coalbed methane potential in China, and help develop policy recommendations to encourage foreign investment and joint venture; 2) to provide information support to American companies who are interested in coalbed methane projects in China by ways of collecting information, identifying opportunities for Chinese and foreign parties in the development of coalbed methane projects,and hosting technical seminars etc.

The Clearing house was established in August 1994,as a part of the China Coal Information Institute.Over the past five years, the USEPA funded Clearinghouse fully completed all the tasks according to the work plan, and reached the expected goals. The Clearinghouse strengthened international technological and economic cooperation in the field of coalbed methane, and promoted the formation and development of coalbed methane industry in China. In the project period, the Clearinghouse completed 4 important study reports and 7 international consulting reports for the US EPA, US Department of Energy, East-West Center, Phillips Petroleum Co.,Asian Development Bank,Wartsila Diesd of Sweden and other organizations hosted and organized 4 intevnational workshops and conferences, published the“Handbook for Coalbed Methane Development and Utilization", and the 10 Chinese issues and 5 English issues of the journal “China Coalbed Methane" and 22 papers in domestic and foreign conferences and journals.

The great efforts and contributions to the implementation of the project have been made by Dou Qingfeng, Huang Shengchu,Zhu Chao,Liu Xin,Li Hongye,Wang Wanxing, Hu Yuhong,Xu Huijun and Jin Ling. At the time when the project is completed, we express our special thanks to Assistant Administrator Bill Nitze, Ms.Dina Kruger and Mr.Karl Schultz of the US EPA and the Mr.Zhang Baoming,Mr.Wang Xianzheng,Administrator and Vice Administrator of Coal Industry of China and Mr.Fan Weitang, former Vice Minister of Coal Industry of China for their supports to the implementation of the project. We also extend our sincere thanks to specialists and colleagues from China and foreign countries for their great efforts to the establishment and implementation of the project.