2001年11月，国家煤矿安全监察局局长，原山西省副省长王显政在山西省政府会见亚洲开发银行能源项目高级官员E. 哈辛先生及美国环保局煤层气办公室主任卡尔.舒尔兹先生，欢迎亚洲开发银行投资山西省煤层气项目，黄盛初副院长参加了会谈。
Wang Xianzheng, Administrator of Coal Mine Safety and former Vice Governor of Shanxi Province, meets with Mr. Edu Hassing, senior official of the Asian Development Bank and Mr. Karl Schultz, CBM team leader of the USEPA in Taiyuan November 2001, and discusses CBM development in this province. Huang Shengchu, vice president of CCII, participates in the meeting.

2000年9月20～21日在北京亮马河饭店举办“煤矿区煤层气项目投资国际研讨会”。
The International Workshop on Investment Opportunities in CMM Projects in China is in session in the Landmark Hotel, Beijing, on September 20～21, 2000.

窦庆峰院长考察澳大利亚BHP公司阿平-陶尔煤矿煤层气电厂

Dou Qingfeng, president of CCII, is on a study tour in coalbed methane power plant of Apin-Tower coal mine, Australia.

黄盛初副院长被亚洲开发银行聘为项目专家，和美国及澳大利亚专家一起完成亚行援助项目“阳泉矿区煤层气开发示范项目可行性”和“晋城矿区煤层气发电项目可行性研究报告”

As specialist engaged by the ADB, Huang Shengchu, vice president of CCII. is working together with specialists from the USA and Australia on the ADB's projects "Feasibility Study on CBM Demonstration Project at Yangquan Coal  Mine" and "Feasibility Study on CMM Power Plant at Jincheng Coal Mine".

2002年10月，煤炭信息研究院代表访问世界银行，洽谈利用世行碳排放基金开发中国煤层气项目。

Delegation of CCII visits the World Bank in Washington DC in October 2002 with the mission to seek prototype carbon funds for CMM/CBM projects in China.

1.     Background

Methane is a potent greenhouse gas with its global warming potential 21 times as much as that of CO₂. In the atmosphere, methane’s contribution to the global greenhouse effect is up to 18%, the second only to CO₂. Annual methane emission from coal mining worldwide is up to 36 – 58 billion m³, accounting for 5 – 8% of the total global methane emissions. Therefore, with the awareness of environmental protection increasing and more emphasis being placed on global warming, major coal producing countries in the world pay more attention to coalbed methane recovery and utilization. US EPA has specially set up the coalbed methane office to promote global coalbed methane recovery and utilization.

China is the largest coalbed methane emitter with annual coalbed methane emissions about 8 – 10 billion m³, accounting for 1/4 of the global coalbed methane emissions. In 1999, of over 1000 high gassy and gas outburst coal mines in China, only 158 coal mines had set up underground gas drainage systems and surface gas transporting systems. The coal mine methane drainage was up to 740 million m³ annually. The average underground gas drainage efficiency in the country was merely 23%. Due to lack of gas utilization facilities and efficient approaches to mine methane utilization, the annual coal mine methane utilization was less than 500 million m³. Additionally, gas explosion and outburst have been main accidents occured in China’s coal mines. In 2000, a total of 466 serious coal mine accidents occured in China, of which, 337 accidents were gas explosion and outburst accidents with over 2600 fatalities. Coal mine methane recovery is the essential measure that can be taken to reduce mine methane emission and avoid mine methane accidents. Thus, it can be seen that China’s coal mine methane recovery and utilization has positive prospects and will effect improvements in protecting the global environment, enhancing coal mine safety and increasing new energy, etc.

To encourage the coalbed methane development and utilization in China, the former Ministry of Coal Industry and US Environmental Protection Agency jointly established the China Coalbed Methane Clearinghouse in 1994. The project was implemented by China Coal Information Institute for 5 years from October 1, 1994 to September 30, 1999. During the 5 years, the Clearinghouse fully fulfilled all the tasks according to the work plan, obtained a batch of important achievements, and reached the expected goals, which was appraised by Mr. Nitze, the Assistant Administrator of US EPA, as a good example of the cooperation between governments of two countries.

In view of the excellent job done by the Clearinghouse and the important role played by China in the coalbed methane emission reduction worldwide, US EPA decided to continue supporting the Clearinghouse. In March of 1999, Mr. Dou Qingfeng and Mr Huang Shengchu, the President and Vice President of the CCII had a meeting in Beijing with Mr. Karl Schultz, Team leader, Coalbed Methane Programs, USEPA and reached the agreement on  the Clearinghouse’s follow-up project “Coal Mine Methane Market Development”. After that, Mr. Dou Qingfeng and Mr. Huang Shengchu reported on the project to Mr. Zhang Baoming and Mr. Wang Xianzheng (the current Vice Governor of Shanxi Province), Administrator and the former Vice Administrator of the State Administration of Coal Mine Safety Supervision, and obtained the support of the leaders of the Administration. In early April, 1999, Mr. Yang Han, the former Vice Director General of the Panning Department of the State Administration of Coal Industry, a member of the delegation to the United States headed by Chinese Premier Zhu Rongji, signed an agreement with Mr. Nitze, Assistant Administrator of US EPA on the US EPA funded the follow-up project entitled “Coal Mine Methane Market Development” for a period of 2 years from October 1, 1999 to September 30, 2001. The US EPA provided the Clearinghouse with a grant of US$120,000 in total during this period.

The CCII attached emphasis on the project “Coal Mine Methane Market Development”. Mr. Dou Qingfeng, President of the CCII took charge of leading the Clearinghouse work, and Mr. Huang Shengchu, Vice President of the CCII was in charge of the project implementation. In addition, the CCII arranged qualified technical staff for the Clearinghouse and provided first-class office conditions.

The objective of the project “Coal Mine Methane Market Development” is to increase capture of coal mine methane by working with industry to develop the necessary data and information to identify economically promising projects and help promote dissemination of this information to potential investors and developers. The State Administration of coal Mine Safety Supervision carried out coordination and provided necessary support during the project implementation. The US EPA provided necessary financial and technical support for the project implementation.

2       Scope of Work and Project Implementation 

2.1 Scope of Work

In accordance with the Sino-American agreement, the major tasks of the project “Coal Mine Methane Market Development” include the followings:

(1)     Prepare 8 data packages on investment opportunities in coal mine methane projects in key mining areas in China. The data package contains: project description, overview of enterprise and coal mining areas, geological conditions and coalbed methane resources. It also includes the current status of coalbed methane recovery and utilization, coalbed methane market and options for CBM development and utilization, environmental and social benefits, preliminary analysis of the economic benefits, obstacles to project development, approaches of technical and economic cooperation, and conclusions and suggestions. 

(2)     Organize workshops and seminars on coal mine methane project investment and technology to provide foreign investors, domestic project owners and the Chinese and overseas experts with a chance to exchange views and discuss cooperative and technical issues. Organize technical study tours and training activities.

(3)     Prepare study reports and other information related to the Chinese coal mine methane development and utilization projects.

(4)     Provide Chinese governmental departments concerned with policy suggestions. Provide domestic and foreign companies with technical and consulting services.

(5)     Renewal and perfecting of the developed coalbed methane databases including CBM resource database, database of coalbed methane development and utilization project and technologies, and database on energy and CBM prices in Chinese major coal mining areas.

(6)     Disseminate information on China’s CBM development & utilization project investment opportunities and technologies to investors and technical suppliers who are interested in Chinese CBM project by means of the coal information web site http://www.coalinfo.net.cn

2.2 Project Management

The project “Coal Mine Methane Market Development” is a cooperative project between US EPA and Chinese State Administration of Coal Mine Safety Supervision (the former State Administration of Coal Industry). The objective of the project is to promote the coal mine methane development and utilization in China and accelerate the market development of the coal mine methane project. This project formally started on October 1, 1999 and fully completed on December 31, 2001. The US EPA provided a grant of US$120,000 in support of the project activities carried out by the Clearinhouse. The project was undertaken by the Clearinghouse. Mr. Dou Qingfeng, President of CCII is the Director of the Clearinghouse, Mr. Huang Shengchu, Vice President of CCII, is the Deputy Director of the Clearinghouse. Ms. Hu Yuhong and Mr. Zhu Chao were project managers. The project team consisted of 6 members, who were specialists in the fields of coal geology, mining, environmental protection, coal and chemical industries, and computer application, and were fluent in English and strong in professional work. The Foreign Affairs Department of the State Administration of Coal Mine Safety Supervision was responsible for the project coordination.

Ms. Dina Kruger, Director of Utilities and Methane Branch of the US EPA and Mr. Karl Schultz, Team leader, Coalbed Methane Programs of the the US EPA was responsible for liaison with the Clearinghouse and provided technical and information assistance. The US company, Raven Ridge Resources, Inc., entrusted by the US EPA, assisted the Clearinghouse in the project activities including collecting and providing CBM data and publications, and providing necessary technical instructions to the Clearinghouse.

According to the requirements of the project management, the Clearinghouse exchanged views and decided schedule of the project activities with the US EPA by work visits. The Clearinghouse submitted detailed annual budget report to the US EPA each year. After approval of the budget report, the Clearinghouse would apply to the US EPA for appropriations in 2 installments per year based on the expenditures of the activities carried out by the Clearinghouse.

2.3 Project Team Member

The Clearinghouse was responsible for the implementation of the project “Coal Mine Methane Market Development”. Mr. Dou Qingfeng, President of the CCII, is the Director of the Cearinghouse, Mr.Huang Shengchu, Vice President of the CCII is the Deputy Director of the Clearinghouse. Ms. Hu Yuhong and Mr. Zhu Chao were project managers. Other project team members were Mr. Xu Huijun and Ms. Liu Xin. Following is the brief introduction of the project team members and their major contributions to the project “Coal Mine Methane Market Development”.

Mr. Dou Qingfeng, Professor and Senior Engineer, President of the CCII and Director of the Coal Industry Publishing House, graduated from Shandong Mining College majored in Coal Mine Construction. In 1994, he was appointed as Vice President of the former Coal Science and Technology Information Institute. In March of 1997, he was appointed Director of the China Coalbed Methane Clearinghouse. Mr. Dou Qingfeng holds several posts, keeping close contact with governmental departments, R & D organizations and coal companies. Mr. Dou Qingfeng chaired and participated in a number of projects on coal mine construction options and development. Over past few years, Mr. Dou Qingfeng and his colleagues completed a number of important research projects including the “Technical Assessment and Development Strategies of Coalbed Methane Recovery and Utilization”, the “Financial Analysis Model for Coalbed Methane Projects at Coal Mines” and the “World Coal Industry Development Report”. In early 1999, Mr. Dou Qingfeng made great efforts in obtaining the US EPA funded follow-up project “Coal Mine Methane Market Development”.

Mr. Huang Shengchu, Senior Consultant and Professor, is the Vice President of the CCII, member of the Steering Committee of the “Coal Mine Safety Supervision Regulations”, and member of the “China Coal Industry Safety and Health Society”. From 1992 to 1993, Mr. Huang, as the State-dispatched visiting scholar studied in Germany. Mr. Huang is mainly engaged in information research and consultation of coal mining, coal mine safety and coalbed methane science and technologies, and is responsible for the cooperative projects between the CCII and the US EPA “China Coalbed Methane Clearinghouse” and the follow-up project “ Coal Mine Methane Market Development”, and the project “Sino-British Clean Coal Technology Information Services”, the cooperative project with British Department of Trade and Industry. Mr. Huang was engaged by Asian Development Bank as the consultant for international projects. Six project achievements including the “Joint Report on Coalbed Methane development potential in China”, and the “World Coal Industry Development Report”, obtained the “prize of Progress in Science and Technology” awarded by the Ministry of Science and Technology, the former Ministry of Coal industry and State Administration of Coal Industry. Mr. Huang, as the Vice Editor-in-chief and main author, published a number of professional works including “Handbook on Coalbed methane Development & Utilization”, “World Coal Industry Development Report” and others. Notably, he did a systematic and initiative research on coalbed methane policies and regulations and published several papers in some important domestic and international conferences exerting broad influence. In 1997, he was approved by the Ministry of Personnel as the State-level Youth Expert who made outstanding contribution. In 2000, the State Council awarded him the governmental special allowance for his outstanding contribution.

Ms. Hu Yuhong, Associate Professor, is the Director of Research Division of CCII as well as the Director of Clean Energy and Environment Center. She has conducted  research concerning clean energy and the environment. She was responsible for the project “Sino-British Clean Coal Technology Information Services”, the cooperative project between the CCII and British Department of Trade and Industry. As the project expert, she took part in the ADB funded project “Feasibility Study of Coalbed Methane Demonstration Project in Yangquan Mining Area”, carried out international consulting work and market surveys, and participated in projects with the World Bank, Asian Development Bank and other foreign companies. The “World Coal Industry Development Report” and 3 other projects which were lead or joined by Ms. Hu Yuhong, obtained the “Prize of Progress in Science and Technology” awarded by the Ministry of Science and Technology, the former Ministry of Coal Industry. In 1999, the State Administration of Coal Industry conferred her the title “ Professional and Technical Outstanding Talent”. In 2000, she was granted the title of “the National Model Female Employee” by China National Trade Union. In 2001, she was given the title “Model Woman Who Makes Contributions” of the national cities by China National Trade Union.

Mr. Zhu Chao, Associate Professor, Deputy Director of the Research Division and holds the post of the project Manager of the Clearinghouse, graduated from China  University of Mining and Technology, receiving Master Degree of the Environmental Engineering. Starting in 1994, Mr. Zhu Chao participated in the establishment of the Clearinghouse and took part in the project implementation as the major team member. Over the past years, Mr. Zhu Chao and his colleagues completed many research reports including “Joint Report of the Potential for Coalbed Methane Development in China”, “Technology Assessment and Development Strategies of Coalbed Methane Recovery and Utilization”, etc.. 5 achievements won the award of “National excellent scientific and technical achievements” and the “Award of Progress in Science and Technology” given by the State Science and Technology Commission and the former Ministry of Coal Industry, respectively. As a domestic consultant, Mr. Zhu Chao participated in consulting work for the ADB project. As the person in charge of the project, Mr. Zhu Chao completed the development of the economic evaluation model of the coal mine methane project. During the past two years, as the team leader, he has been responsible for and participated in completing 8 data packages on investment opportunities of the Coal Mine Methane Projects. In 1996 and 1999, Mr. Zhu Chao received coalbed methane technical training in the United State.

Mr. Xu Huijun, Engineer, graduated from Jiaozuo Technology College and obtained Master Degree of Geological Engineering. Mr. Xu Huijun worked in the Clean Energy and Environmental Center in 1998, took part in the Sino-British cooperative project “Sino-British Clean Coal Technology Information Services”. He joined the Clearinghouse in early 1999. He took part in the preparation of the reports for “Study on Predicting Coal Mine Methane Emission with the Mathematics Model of the Coal Mine Methane Geology”, “Strategy on Chinese Coal Industry Diversified Economy” and other studies. The report “Study on predicting coal mine methane emission with the mathematics model of the coal mine methane geology” won the second-class award of Progress in Science and Technology in Henan Province. He also took part in the consulting services for the ADB project. Over the past 2 years, he independently completed 3 data packages on investment opportunities of coal mine methane projects .

Ms. Liu Xin, Engineer, graduated from Xi’an Petroleum Institute receiving the Bachelor Degree of Computer Application. Since 1994, she has participated in the work of the Clearinghouse, mainly responsible for the database development. She has developed a number of coalbed methane related databases. She took part in many coalbed methane study projects including the development of “Coal mine methane economic assessment model” and participated in the consulting work of the ADB project. Over the past 2 years, she independently completed 2 data packages on investment opportunities of coal mine methane projects.

2.4 Office Condition

The Clearinghouse has one of the state-of-the-art offices in China Coal Information Institute. It is equipped with computers, fax machine, copy machine, electronic scanner, overhead projector, international long distance phone service, office furniture and other facilities. In 1995, the Clearinghouse began to use E-mail for telecommunications. In 1998, the Clearinghouse established its own home page on the Internet, and put the magazine “China coalbed Methane” along with other publications and the latest news and information on Chinese coalbed methane development and utilization onto that site.

2.5 Information Network

The establishment of the information network is an efficient approach to promote the dissemination of coalbed methane information. Since the Clearinghouse was established, close relationships have been established between the Clearinghouse and governmental departments concerned, and the scientific institutions and companies that are engaged in the business of coalbed methane development and utilization. In early 2000, based on the requirement of the business development, the Steering Committee of the coalbed methane project and the Business Advisory Committee (BAC) were established. The BBC consists of coalbed methane experts, consultants from overseas companies, international agencies, and a number of domestic coal and coalbed methane companies. The function of the BAC is to promote the environmentally and economically sound development of coal mine gas in China by fostering a market-driven business approach to project development and financing. The Steering Committee comprises representatives from the State Administration of Coal Industry, the Coalbed Methane Clearinghouse, China United Coalbed Methane Co., Ltd., coal companies concerned, US EPA and Raven Ridge Resources, Inc. The function of the Steering Committee is to guide the work of the BAC and promote the development of coal mine methane resources in China.

Based on the above, the Clearinghouse continued expanding the Chinese coalbed methane network that has been established, and set up relationships with over 30 key mining areas. Some 50 information providers joined the network. The obligation of the information provider is to circulate and disseminate information on coalbed methane exploration, development and utilization, collect and feedback coalbed methane information and participate in investigation/study activities and workshops organized by the Clearinghouse.

3.Investment Opportunities for Coalbed Methane Projects in Selected Coal Mining Areas

According to the work plan and on the base of coal mine methane recovery and use as well as coal production plan of each coal company, China Coalbed Methane Clearinghouse selected the coalbed methane projects in eight key coal mining areas including Jincheng, Yangquan, Huainan, Huaibei, Panjiang, Pingdingshan, Jiaozuo and Fushun. The Clearinghouse carried out project analysis and evaluation for these CMM projects in terms of technology, market, economy and environmental protection, etc. The Clearinghouse also displayed the investment opportunities of these projects to domestic and international potential investors by publishing Chinese and English version investment opportunity reports and releasing information on the Internet. Mr. Huang Shengchu, Mr. Zhu Chao, Mr. Xu Huijun and Ms. Liu Xin visited the mining areas and discussed with the mining officials and technological personnel concerned. The coalbed methane resources, potential for coalbed methane development and utilization and potential coalbed methane projects were described in the reports. The reports were distributed in several conferences and attracted investors’ attention from home and abroad. Some companies from USA, Japan and Australia decided to get involved in coalbed methane projects according to the information provided by the reports.

3.1 Conditions in coal mining areas

All these selected coal-mining areas are endowed with ideal conditions in coalbed methane occurrence and the majority of these coal-mining areas are rich in coalbed methane resources with appropriate coal seam permeability, depth of coal seams, thick coal seams and higher gas saturation. They are ideal for large-scaled development. For the coalbed methane development potential evaluation of these coal mine areas, see table 1.

Table 1 Coalbed Methane Development Potential Evaluation Parameters

All of the selected coal mining areas have their own underground gas drainage system with respective annual drainage higher than 10.0 million m³ and the maximum could be as high as 126.0 million m³. The annual methane emissions of each coal mining area and the coalbed methane drainage efficiency show that the majority of these coal- mining areas have considerable potential for gas production growth. On the other hand, all of these areas try to recover coalbed methane from surface wells. In this regards, Jincheng, Huainan, Yangquan and Fushun have all obtained good results.

All selected coal-mining areas are close to cities, which provide assured market for the coalbed methane produced. In some of the coal mining areas selected, coalbed methane distribution systems are already in place. The West-East Gas Pipelines project that transmits natural gas from Tarim Basin in Xinjiang Uygur Autonomous Region to Shanghai, a very important strategic energy project of China, makes its way through several of the coal mining areas selected. This also provides very favorable conditions for the commercial development of coalbed methane. 

3.2 Options for coalbed methane utilization

Due to the close distance between coal mining areas and medium- and small-sized cities, coal-mining enterprises are always major electric power consumers and the residential use and power generation are always the primary options for the utilization of coalbed methane extracted. In certain coal mining areas, coalbed methane is also considered to be used as feedstock for chemical production, for instance, the production of methanol and carbon black. Along with the gradual deregulation of the residential fuel gas prices, prices of coalbed methane are also climbing. The present price of coalbed methane at the final gas consumer is as high as 1.0 ~ 1.5 yuan/m³. This is very good for the commercialization of the use of coalbed methane. Power generation is a very effective way of comprehensive utilization of resources such as coalbed methane because power generation will not only make a full use of the coalbed methane which would otherwise be released into the atmosphere in the form of a kind of green-house gas, it will also produce considerable economic benefit. In a diversified coalbed methane utilization option prepared for various coal-mining areas, coalbed methane extracted from different mines is put together first and then supplied to residential users and/or power plants for power generation.

3.3 Economic and environmental benefits

All of the coalbed methane development projects of the selected coal mining areas have positive economic benefits. According to the presently available market conditions and financial assumptions, among all coalbed methane utilization options, coalbed methane for power generation produces the best economic benefits, followed by coalbed methane residential utilization and coalbed methane surface development projects. For details, see table 2. Viewed as a whole, coalbed methane utilization projects in coal mining areas are always of high profit making characters. Their IRR is generally higher than 18% and their payback periods are generally less than 8 years.

Coalbed methane utilization projects in coal mining areas also produce positive environmental benefits. Coalbed methane used as a substitute for coal for residential use and a fuel for power generation can substantially reduce the emission of SO₂ and smoke. The use of coalbed methane for residential use and power generation produces even outstanding benefits in the mitigation of greenhouse gas emissions. All these coalbed methane development and utilization projects may result in reduced greenhouse gas emission at fairly low costs which is generally somewhere between 16.0 ~ 60.0 yuan/tCO₂.

Table 2 A List of CMM Projects in Key Mining Areas

4. Important Achievements

4.1 Selection of favorable CBM exploration areas in China and R&D for CBM

   key exploration and development technology

Selection of favorable CBM exploration areas in China and R&D for CBM key exploration and development technology is a key R&D project included in the nation’s most important technological development program planned for the tenth “Five-Year-Plan” period. Funded by the Ministry of Science and Technology, this project is organized and coordinated by China United Coalbed Methane Co., Ltd. and jointly implemented by China Coal Research Institute (CCRI) Xi’an Branch, CCRI Chongqing Branch, China Oil Exploration and Development Research Institute and China Coalbed Methane Clearinghouse.

Goals of this project are to: find out the laws and regularities of coalbed methane accumulation in gas reservoirs; to develop new technologies such as the under-balance drilling and injection of CO₂ for enhanced coalbed methane recovery rate; and to develop a series of techniques for commercial CBM development from both surface and underground. All these are designed to provide technological foundations to a “low cost and high efficiency” industrialized development of coalbed methane in this country. The main contents of the project include: laws and regularities of coalbed methane accumulation and occurrence and economic evaluation of commercial coalbed methane development, research on the key technologies for coalbed methane exploration and development, and research on commercial coalbed methane development integrated with coal mining.

China Coalbed Methane Clearinghouse is in charge of the sub-project “Economic evaluation of commercial coalbed methane development”, which is aimed at setting up the economic index system for coalbed methane development projects, developing coalbed methane development project economic evaluation model and providing reliable economic evaluation for the establishment of 2 ~ 3 coalbed methane development demonstration bases in China by the end of 2005.

4.2 Technology assessment and development strategies of coalbed methane

    recovery and utilization

In 1996, under the coordination of the State Science and Technology Commission, Tsinghui University took the lead in organizing the “Important Strategies and Policies Study on Global Climate Change”, one of the State key R & D projects in the Ninth Five Year Plan and funded by the US Department of Energy. The study project “Technology assessment and development strategies of coalbed methane recovery and utilization” is one of the sub-projects of it.

The Clearinghouse undertook this study project. During the period of the study, based on the outline and guidelines of the study project, we took use of study achievements obtained by the Clearinghouse and other organizations, and carried out site surveys on the current status of the coalbed methane development and utilization and key projects. We obtained a great deal of first-hand information and data, after comprehensive study and analysis of the data, finally completed 3 main reports: (1) Comprehensive study report; (2) Project proposal, and (3) Case study.  The study project was completed in the end of 2000.

4.3 Database of Coalbed Methane Recovery and Utilization

The database of coalbed methane recovery and utilization includes data of coalbed methane recovery and utilization collected from 184 coal mines in 61 coal mining areas in 20 provinces and cities throughout the country. The established database of coalbed methane recovery and utilization includes the following main data: (1) Name of coal mine; (2) Actual recovery amount; (3) Methane concentration; (4) Actual mine methane drainage efficiency; (5) Coalbed methane utilization ratio; (6) Coalbed methane utilization amount; (7) Drill rig type, and (8) Type of drainage pump.

At the time the database is set up, the Clearinghouse collected all historic year data throughout the country after 1980, and input all the data into the database. After the database was completed, the Clearinghouse conducts “dynamic management” for the data in the database, i.e. data input, modify, delete, inquire, index and other operations. Additionally, users can inquire in the database based on requirements, such as the coalbed methane drainage amount of a coal mine, the actual drainage efficiency of a coal mine and coalbed methane utilization amount, etc.

5.     Organizing and hosting coalbed methane workshop and seminars

It is an important way of the Clearinghouse to disseminate CBM information, exchange technology, and to organize and host CBM related seminars. During the implementation of the project “Coal Mine Methane Market Development”, China Coalbed Methane Clearinghouse hosted a total of three large international seminars and one trainging workshop. All of these activities were successfully completed.

5.1         International Workshop on Coal Mine Methane Market Development 

The International Workshop of Coal Mine Methane Market Development was held in the Landmark Hotel, Beijing November 30 ~ December 1, 1999. Under the sponsorship of the USEPA and the State Administration of Coal Industry of China, this workshop was organized by China Coal Information Institute. More than 80 participants from the United States, France, Australia, ADB and the Chinese governmental organizations were present.  Representatives from coal, oil and geological and mineral resources sectors of this country participated in this workshop. Wang Xianzheng, former Vice Administrator of the State Administration of Coal Industry, Fan Weitang, academician of the Chinese Academy of Engineering, Robert Armstrong, acting counselor of the US Embassy in Beijing and leading personnel of the State Development and Planning Commission (SDPC), State Economic and Trade Commission (SETC) and the State Environmental Protection Bureau also participated in this workshop and delivered their speeches.

This workshop is divided into three parts: the special report session, project steering commission session and business advisor commission (BAC) session. On the special report session, participants carried out systematic discussions and analysis of the market development prospects for coalbed methane, favourable conditions and obstacles to coalbed methane market development and the preparation of project data packages. Discussions carried out by the project steering commission session  focused on the present major obstacles and solutions to the coalbed methane development and utilization projects in coal mining areas. At the BAC session, the participants exchanged ideas on the project development, project financing, coalbed methane joint development mechanism, market development and coalbed methane market demands and project evaluation, etc. The workshop determined the focus and methodology for coalbed methane market development in coal mining areas. This greatly pushed forward the international technical and economic cooperation in the sector of coalbed methane market development in coal mining areas in China.

5.2         International Workshop on Investments Opportunities for Coal Mine Methane Projects

Co-sponsored by the State Administration of Coal Industry of China and the USEPA, the International Workshop on Investments Opportunities for Coal Mine Methane Projects was held in the Landmark Hotel in Beijing September 20 ~ 21 2000. A total of more than 110 representatives from the United States, the UK, Australia, Germany, Japan and the World Bank, competent governmental organizations of China as well as 11 key mining areas and relevant firms and companies participated in this workshop.

Zhang Baoming, Administrator of the State Administration of Coal Industry, Zhao Tiechui, Vice Administrator of the State Administration of Coal Industry, Robert Armstrong from the US Embassy in Beijing and Wang Dongguang, Deputy Director-General Basic Industry Department under the SDPC also participated in this workshop and delivered their speeches.

This workshop was divided into four sessions that dealt with the following topics:

(1)  coalbed methane project investment prospects; (2) coalbed methane industry development strategy and the application of relevant technologies, and (3) key coalbed methane development projects. More than 20 participants delivered excellent speeches at the workshop. Participants carried out in-depth discussions and exchanged ideas on various topics such as international cooperation for coalbed methane development projects, ways for project financing, investment opportunities for specific coalbed methane development projects in key coal mining areas, priority technologies for use in coalbed methane development and utilization projects and investment opportunity report on coalbed methane development project of Jincheng coal mining area of China. During the workshop, the US Caterpillar China Limited and the US Sierra Power Products reached agreement of intention on coalbed methane fired power generation projects with Yangquan Coal Group Co., and Jincheng Anthracite Coal Mining Group Co., Ltd. respectively. This workshop fully exhibited the investments opportunities for coalbed methane projects designed for the coal mining areas in China, hence greatly fostered the international cooperation in the development of coalbed methane resources in China.

5.3         2001 International CMM/CBM Investment and Technology Smposium/Expo.

Sponsored by the State Administration of Coal Mine Safety Supervision, China National Coal Association and the USEPA, the International 2001 International CMM/CBM Investment Symposium/Expo. was held in the Pudong Holiday Inn in Shanghai November 7 ~ 8 2001. More than 130 participants from the United States, the UK, Australia, Japan, Germany, Kazakstan and ADB, as well as from the Chinese Ministry of Science and Technology, the Ministry of Land and Resources, coal, oil and mineral resources sectors participated in this workshop.

Mr. Jiang Qingjun, Director-General of the Department of Information, Technology and Equipment of the State Administration of Coal Mine Safety Supervision delivered the opening message for Mr. Zhang Baoming, Administrator of the State Administration of Coal Mine Safety Supervision. Mr. Fan Weitang, Chairman of China National Coal Association and Academician of the Chinese Academy of Engineering, Mr. Sun Zhengxin, president of Shanghai Academy of Sciences, Ms. Catherline Houghton, principal commercial officier of the US Consulate General in Shanghai and Mr. Edu Hassing, Senior Project Officer of the ADB attended the workshop and delivered their speeches. The workshop was chaired by Mr. Lin Yisheng, Deputy Director-General of the Foreign Affairs Department of the State Administration of Coal Mine Safety Supervision.

This workshop was divided into four topics: (1) keynote report; (2) coalbed methane  project investment opportunities; (3) coalbed methane development technologies; (4) coalbed methane utilization technology.

A total of 23 participants made presentations at the workshop. China Coalbed Methane Clearinghouse prepared a total of eight data packages of CMM projects and relevant posters, arousing great interests from the participants. During the workshop, many domestic and foreign firms and companies actively carried out talks and a series of project intention were reached as a result. This workshop created very favourable conditions for the industrialization of coalbed methane development and utilization in coal mine areas in China.

5.4         High Level Training Workshop on International Financing for CBM Project

In order to promote the international project financing for CBM projects so as to help owners of CBM project get international assistance as soon as possible and further eliminate the obstacles between CBM project owners and potential investors, China Coalbed Methane Clearinghouse and the USEPA jointly organized a high level workshop on international financing for CBM projects in Xiamen, Fujian Province April 24 ~ 25 2001. Nearly 30 participants who are officials in charge of CBM development and related technical professionals from eight key coal companies and three oil companies participated in this workshop.

This workshop is mainly devoted to topics such as: how to prepare project investment opportunity report, skills in negotiating with the US companies and firms, how to choose the appropriate investors, how to market projects to the US companies and firms and how to obtain international cooperation opportunities, etc. Mr. Jay Rothstein, a senior investment specialist with the US Investment Association and Mr. Pilcher were invited to give special presentations at the workshop.

6.  Training and International Exchange

China Coalbed Methane Clearinghouse sent two delegations to the United States and Australia for technical investigation and one person to the United States for CBM conference during 1999 ~ 2000. These were designed for acquiring complete knowledge of advanced CBM development and utilization technologies and related policies developed in other countries. As a result, cooperation relationship was also set up with some foreign organizations and companies. In the same time progress of Chinese CBM projects, their development prospects and technical development trends were widely publicized.

Invited and sponsored by the US Strategic Research Institute, Mr. Huang Shengchu, Vice President of the CCII and Deputy Director of the Clearinghouse participated in the “International Conference on Coalbed Methane Development” held in Denver in the United States March 25 ~ 31, 2000. This Conference also covered topics such as US CBM resources evaluation, the latest status of CBM development projects, CBM development related environmental implications, case studies, CBM development project prospects in other countries and related experiences. As the exclusive specially invited participants from China, Mr. Huang Shengchu presented his keynote report entitled “Coal Mine Methane Development and Market Prospects in China”, which aroused great interest from among the participants.

At the invitation of the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia, Mr. Sun Xudong, Vice President of CCII and Mr. Zhu Chao, Deputy Chief of Research and Consultant Division of CCII paid a visit to Australia for the understanding of energy and related environmental technologies in Australia. This delegation consecutively toured CSIRO Energy Technology Centre, Energy Development Company, Australian Coal Research Program, Queensland New Technology Centre and Betman Engineering Co. As a result, the delegation learned coal and CBM technologies of Australia from different aspects and they also carried out careful discussions with relevant departments on the prospects for their future cooperation. With regard to information exchange, joint application for project initiation and coal preparation technology market development, the group reached preliminary intentions with the Australian organizations and companies.

At the invitation of the USEPA, Mr. Huang Shengchu, Vice President of the CCII and Ms. Hu Yuhong, Chief of Research and Consultant Division of the CCII etc. visited the United States from June 23 to July 2, 2001. During the visit, the group carried out project talks and technical studies in both countries and they also visited the USEPA, ICF Inc and ARI Company of the United States. As a result of this visit, preliminary cooperation intention was reached between the Chinese side and relevant host organizations on the USEPA follow-up project, ADB project and other related consultant projects. 

7.     International consulting services

(1)  Providing consulting services for ADB projects

The tripartite evaluation meeting on the ADB assisted the Yangquan CBM demonstration project feasibility report was held in Beijing on February 22, 2001. Mr. Bai Ran, Deputy Director-general of the Foreign Affairs Department of the State Administration of Coal Mine Safety Supervision, Mr. Edu Hassing, Senior Project Officer of the ADB, Mr. Li Baoyu, Chief Engineer of Yangquan Coal Group, Mr. Huang Shengchu, Vice President of the CCII and members of the ADB project group participated in the evaluation meeting. The meeting produced the unanimous consensus that the Yangquan 50000kW CBM fired power generation project is feasible both technologically and economically and therefore it is qualified for application for ADB loan support. Mr. Hassing also said that the ADB would like to provide support to promising CBM projects of other coal mining areas. After the conclusion of this evaluation meeting, Mr. Huang Shengchu strongly recommended the Jincheng CBM project to Mr. Hassing.

On February 27, 2001, Mr. Huang Shengchu, Mr. Wen Shihua, Vice President of Jincheng Anthracite Coal Group and other members of the project team held talks with Mr. Hassing in Beijing. Mr. Hassing said that the ADB could consider providing preferential loans to Jincheng CBM power generation project.

On March 6, 2001, China Coalbed Methane Clearinghouse arranged a meeting between Mr. Hassing, Senior Project Officer of the ADB and Mr. Wei Pengyuan, division chief of the Department of Basic Industry of the State Development Planning Commission (SDPC) which was also participated by Mr. Huang Shengchu, Vice President of the CCII, Ms. Hu Yuhong and Mr. Zhu Chao, Chief and Deputy Chief  of the Research and Consultant Division of the CCII. On this occasion, Mr. Hassing said that in addition to supporting the Jincheng CBM power generation project in an active way, the ADB would also like to include other coalbed methane development and utilization projects into the list of ADB demonstration projects. Mr. Wei Pengyuan, Division Chief of the Basic Industry Department of the SDPC pointed out that the Chinese government had long been attaching great importance to the development and utilization of coalbed methane and that coalbed methane development and utilization had been listed into the energy development plan for the tenth Five-Year Plan. Both sides also had a frank exchange of views on the questions like cooperation procedures and project financing of the ADB assisted CBM projects in China.

On November 8 ~ 10, 2001, Mr. Huang Shengchu accompanied a total of five invited guests i.e. Mr. E Hassin, senior project officer of the ADB, Mr. Karl Schultz, Team Leader, Coalbed Metahne Programs, USEPA, US CBM experts Mr. Pilcher, Mr. Brunner and Mr. Stevens to Shanxi Province for a technical investigation. Mr. Wang Xianzheng, Vice Governor of Shanxi Province and officials of Shanxi provincial development planning commission, provincial economic and trade commission, provincial environmental bureau, Jincheng Anthracite Coal Group and Yangquan Coal Group met with this delegation and carried out discussions on CBM and other energy investment projects of this coal rich province. Then, Mr. Huang Shengchu accompanied this group of foreign experts to visit the Jincheng coal mining area for investigation of coalbed methane projects.

(2)  Providing consulting services to the US Sierra Power Products

During the international workshop on Investment Opportunities for Coal Mine Mehtane Projects in September 2000, Jincheng Anthracite Coal Mining Group and the US Sierra Power Products reached an agreement on the development and utilization of coalbed methane for power generation. In order to push forward the initialization of the CBM power generation project of Jincheng, Mr. Huang Shengchu and Mr. Xu Huijun accompanied Mr. Barry Hinesley, Vice President of the US Sierra Power Products and Mr. Wang Jiasheng, project manager of Sierra Power Products, went to Jincheng for a site visit and talks with Jincheng Anthracite Coal Mining Group during October 31 ~ November 2, 2000. The visiting group also toured the site for the planned CBM power generation plant and talked in detail about the technical and financing issues of the CBM power generation project with Jincheng Anthracite Coal Mining Group. During this visit, Jincheng Anthracite Coal Mining Group and the US Sierra Power Products also reached cooperation agreement on Jincheng CBM power plant project in Shanxi Province.

On January 17, 2001, Mr. Xu Huijun, a staff member of China Coalbed Methane Clearinghouse accompanied Mr. Hinesley, Mr. Li Yi, Chief Representative of the US Sierra Power Products China Ltd and Mr. Li Jianping, General Manager of China Sendi Investment Engineering Co. Ltd. to visit Taiyuan, the capital city of Shanxi Province for meetings with Mr. Yuan Zongben, Chairman of Jincheng Anthracite Coal Mining Group, Mr. Song Xiaoming, President of Jincheng Anthracite Coal Mining Group and Mr. Wen Shihua, Deputy General Manager of Jincheng Anthracite Coal Mining Group. A tripartite meeting was held among these people on issues concerning the CBM fired power plant of Sihe coal mine, Jincheng Anthracite Coal Mining Group. It is determined as a result of this meeting that the focus of the next phase of work to do is the project financing provided by the US Sierra Power Products and project approval to be accomplished by Jincheng Anthracite Coal Mining Group.

(3)  Providing consulting services to the Japanese Company Ebara

On May 30 2000, Mr. Huang Shengchu, Vice President of the CCII and Mr. Zhu Chao, Project Manager of the Clearinghouse, were invited to participate in the expert meeting on “Yangquan Coal Waste and Coal Mine Methane Co-firing Project”, a green assistance project of Japan. After the meeting, China Coalbed Methane Clearinghouse provided the Japanese Company Ebara with consultant services concerning the production of waste coal and coalbed methane in China.

8.     Published papers

Staff of China Coalbed Methane Clearinghouse published a total of 11 papers on domestic and international conferences and/or well-known periodicals. These include the following:

(1)  Huang Shengchu, “China’s Coalbed Methane Industry”, the International Workshop on Coalbed Methane, Denver, Colorado, USA, March 2000.

(2)  Huang Shengchu, “The Investment Prospects of Coal Mine Methane Projects in China”, 2001 International Coalbed Methane Symposium, the University of Alabama, May 2001.

(3)  Huang Shengchu and Zhu Chao, “Latest Progress in Coalbed Methane Development in Foreign Countries”, published in “China Coal Industry Yearbook 2000” (Chinese edition).

(4)  Huang Shengchu, Zhu Chao and Xu Huijun, “Investment Opportunities in Coal Mine Methane Projects in China”, published in “China Coal Industry Yearbook 2000” (English edition).

(5)  Zhu Chao, “Present Status and Prospects of World Coalbed Methane Industry Development”, published in “China Coal Industry Yearbook 1999”, Chinese edition.

(6)  Sun Maoyuan and Zhu Chao, “Coalbed Methane Development in Foreign Countries: Characteristics and Encouraging Policies”, published in “China Coal”, No.2, 2001.

(7)  Huang Shengchu, Zhu Chao, Liu Xin and Xu Huijun, “Investment Opportunities in Coal Mine Methane Projects in China”,  published in “Proceedings of the 2001 International CMM/CBM Investment and Technology Symposium/Expo., Shanghai, China, November 2001.

(8)  Zhu Chao Dou Qingfeng and Huang Shengchu, “Technology Assessment and Development Strategies of Coal Mine Methane Recovery and Utilization in China”, published in the “Proceedings of the Australian International Seminar on Greenhouse Gas Emission Mitigation Technology”, May 2000.

(9)  Huang Shengchu and Xu Huijun, “An Analysis of Coal Mine Methane Resources Conditions and Development Prospects,” published on “New Progress in Gas Geology”, June 2001, Henan Science and Technology Publishing House.

(10) Xu Huijun and Zhu Chao, “Role of Coalbed Methane in China’s Energy Industry and Present Status and Prospects of CBM Development and Utilization,” published in “China Coal”, No.12, 2001.

(11) Xu Huijun et al., “Characteristics of Coalbed Methane Reservoir and Development Prospects in Jincheng Mining Area,” published in “New Progress in Methane Geology”, June 2001, Henan Science and Technology Publishing House.

9.  Economic returns and financial report

In the course of two year, China Coalbed Methane Clearinghouse received total grants of USD120,000 from the USEPA. All these grants are mainly used to support the activities carried out by the staff members of the Clearinghouse. Expenses incurred include research projects, project promotions, organization of seminars and workshops, overseas study tours and technical training abroad, etc.

10.  Conclusions

(1)   The coalmine methane market development project implemented during 1999 ~ 2001 has completely accomplished its expected goals. The implementation of this project greatly pushed forward the international technical and economic cooperation in coalmine methane development and speeded up the initialization and implementation of coalbed methane development projects. This laid sound foundations for the industrialization of coalbed methane in China.

(2)   The USEPA provided budget and technical support in a timely manner while the high officials of the State Administration of Coal Mine Safety Supervision, China National Coal Association and competent departments provided great support to the work carried out by China Coalbed Methane Clearinghouse. All these created favorable conditions for the implementation of the project.

(3)   Over the past two years, the Clearinghouse has completed 8 data packages on coal mine methane projects, 1 important study report, 4 international consultant service projects, 3 large international coalbed methane workshops and one training workshop. In addition, the Clearinghouse published a total of 11 valuable papers. All these activities enhanced the influence of China Coal Information Institute in China and in the world.

(4)   The implementation of this coalbed methane market development project greatly increased the consulting service capability of the Clearinghouse. During the project implementation, the Clearinghouse provided consulting services to a total of 15 domestic and international institutions and companies, which in turn benefited the initialization and implementation of coalbed methane projects.

(5)   The implementation of this project, site study tours both in China and abroad and organization of international coalbed methane workshop and seminars resulted in notable improvement in the business capacity and foreign communication ability of the Clearinghouse staff, which also cultivated the talents for the CCII.

(6)   The establishment of coalbed methane information network greatly improved the speed and effects of coalbed methane information dissemination and improved its influence.

Specialists of CBMC are working on the study project "Evaluation for Commercialized Coalbed Methane Development", a sub-project of the NATIONAL R&D Program in the tenth Five-Year-Plan.

胡予红主任被聘为专家参加联合国开发计划署项目“中国清洁开发机制（CDM）能力建设项目”图为在珠海会议上作专题报告“中国CDM煤层气项目发展前景。”

As specialist engaged in preparation for the UNDP project "Building Capability for CDM in China". Ms. Hu Yuhong presents her key-note report on "development of CDM projects with CDM funds in China".

项目经理刘馨在美国接受技术培训
Ms. Liu Xin, project manager, receives technical training in the United States.

项目经理朱超陪同拉文雷治公司总裁皮尔彻先生在淮北矿区考察
Zhu Chao, project manager, accompanies Mr. Pilcher, president of the U.S. RRR Inc for a study tour in Huaibei coal mines

The International Workshop on Investment in Energy & CBM/CMM Projects is in session in Harbour View Hotel , Zhuhai , on June 13～14, 2002.