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China eyes new energy source

(Xinhua)
Updated: 2006-09-03 10:01

So far, more than 600 coal-bed methane wells have been sunk across the country, most of which are still in the prospecting and experimental stage and far away from commercial operation, with the daily methane output record being 16,000 cubic meters.

In the face of tightening pressures on promoting coalmine safety, alleviating air pollution and supplying more clean energy, the Chinese government is attaching more attention to the development of coal-bed gas.

In February 2005, the State Council, China's cabinet, put forward seven measures to harness gas, prevent gas accidents in coalmines and to develop coal-bed methane.

On May 31, 2006, the National Development and Reform Commission, China's industrial watchdog, approved a five-year plan on the exploitation of coal-bed methane. Under the four-point blueprint, China is to increase annual coal-bed gas output to 10 billion cubic meters in 2010, utilizing 80 percent. China will investigate and confirm that the country has an additional 300 billion cubic meters of coal-bed methane reserves availably by 2010. And China will gradually set up an industrial system to develop and utilize coal-bed methane.

On June 19, 2006, the State Council promulgated a 16-clause guideline on accelerating the exploitation of coal-bed methane, offering a series of preferential policies on land use, taxation, loans and access of methane-generated electricity to local power grids.

On Aug. 28, 2006, senior officials with the National Development and Reform Commission (NDRC) said detailed measures are under preparation by financial, taxation and land resources authorities to put the 16-clause guideline into practice.

NDRC calls upon local governments to follow the practice of east China's Jiangxi Province in earmarking special financial funds to encourage exploitation of coal-bed methane. Jiangxi awards enterprises 0.05 yuan per cubic meter in the exploitation of coal-bed methane.

Applications

"Along with the development of science and technology, coal-bed methane has already become a new source of power generation in China," said Liu Wenge of the China Coal Information Research Institute.

The expert said apart from the current 90,000 kilowatts from the coal-bed methane, other projects with an installed capacity of 150,000 kilowatts are under construction or planned to be built.

A coal-bed methane power plant with the capacity of 120,000 kilowatts is being built in Jincheng of north China's Shanxi Province. With a total investment of 875 million yuan, it will be the world's largest when completed in June next year, said Yuan Zongben, president of Shanxi Jincheng Coal Industry Group.