CBM surging ahead

Reuters has a report on Asian efforts to expand production of coal seam gas - Asia's coal seam gas projects charge ahead, China leads. Projects to exploit coal-bed methane (CBM) are surging ahead in Asia, with China leading.

China, the world's second-biggest energy user after the United States, is eager to develop CBM into an alternative energy source to drive its rapid industrialisation. The country extracted four billion cubic metres (bcm) of CBM in 2006, and is expected to pump up 10 bcm by 2010, besides further raising 300 bcm of proven CBM reserves.

CBM is extracted from deep coal beds through the drilling of wells. However, unlike drilling for natural gas, large amounts of water must be pumped from the coal bed area in order to depressurize the bed. Once the water is removed, the methane is able to escape from the coal and flow into the well itself.

The only problem with CBM is the water that is removed from the wells. Being saline this cannot be mixed with freshwater. Ways to clean it include evaporation in huge ponds, or pouring it back into rock fractures. The effect on acquifers can also not be ignored.

But utilization of this methane could not only help augment supply but also prevent the pollution of atmosphere that would result from methane escaping. As in the case of natural gas, burning of methane reduces emissions quite significantly.

Of course this cannot by itself meet the demand, only add to the mix of energy sources. But CBM projects are often capital intensive. Heavy drilling equipment alone can cost a lot. Additional support from mechanisms like CDM can help.

In India operational CBM fields can contribute to over 8-10 mmscmd of gas production in the next five years. Investment in coal and gas transportation infrastructure, including gas gathering, transportation and distribution, is necessary to move CBM from coal fields to local and more distant end-use markets.

A combination of resources is the best bet in today’s energy-hungry world, as we have been saying. The more localized the usage is, the better.