By Wan Zhihong (China Daily)
Updated: 2008-01-26 10:01

The nation's main coalbed methane developer signed a deal with two companies on Friday for a new technology to boost production.

China United Coalbed Methane Corp Ltd (CUCBM) signed the agreement with Canadian firm Petromin Resources Ltd and Hong Kong-based Enviro Energy International Holding Ltd. Total investment in the project is 9.9 million yuan (US$1.37 million).

The project will inject carbon dioxide (CO2) deep into coal seams that cannot be mined, to enhance production capacity. Enviro Energy International and Petromin will bring technical guidance, support and assistance and CUCBM will provide labs and supervise outdoor operations.

The project is a milestone in deep coalbed methane development in China, Sun Maoyuan, president of CUCBM, told China Daily.

Recycling and storing CO2, is also an important step to reduce emissions. The project is part of a five-year program to develop multi-well CO2 injection-enhanced coalbed production. A single-well test has already been carried out in Qinshui, Shanxi province, in collaboration with the Canadian government.

The China United Coalbed Methane National Engineering Research Center was set up last year, with registered capital of 76 million yuan.

The center is co-funded by CUCBM and five other companies - PetroChina, Sinopec, Huaibei Mining Group, China University of Geosciences (Beijing) and Beijing Orion Co Ltd.

A practical and reliable alternative energy source, coalbed methane will help meet China's energy demand and reduce the number of gas explosions in coal mines, Sun said.

China is still in the early stages of coalbed methane development. The National Development and Reform Commission has drafted a five-year plan for the industry, targeting output of 10 billion cu m by 2010.