China's Coalbed Methane Development: Part One

What can China do about its coal mines which drive the country's electrical production? Although official figures are lower, as many as 6000 Chinese die in the country's 30,000+ coal mines every year. More suffer from air pollution and black lung.

By comparison in the United States, the American Lung Association estimates about 24,000 premature deaths are caused every year by air pollution from coal-fired power plants.

About 40 percent of the emissions of carbon dioxide, which contribute to greenhouse gases and global warming, come from coal burning. Imagine how much larger a problem this has become for the Chinese?

Nonetheless, coal mining will stay with China for at least the entire 21st century. More uses from China's coal mines could make these resources indispensable. Rising petroleum costs have forced China to move forward to convert coal to oil products.

Thirty coal liquefaction projects are now in the detailed planning or feasibility study stage. The Chinese plan to spend more than $15 billion in order to produce 50 million tons of oil from coal liquefaction by 2020.

Chinese Premier Wen Jiabao, a former mining engineer, has been sympathetic to the plight of coal miners. New restrictions and regulations have increased the safety for coal miners. One of those upon which there is greater emphasis is capturing the methane from coal seams before the mining process begins.

Methane gas in coal seams is the culprit behind widespread pollution and coal mining deaths. Nearly a decade ago, China United Coalbed Methane (CUCBM) was formed to capitalize upon the wasted methane released into the atmosphere during the mining process.

Following the developments in New Mexico's San Juan Basin and Wyoming's Powder River Basin, the Chinese are determined to utilize the 'unconventional gas,' also known as coalbed methane (CBM) as an important energy source.

James Finch contributes to StockInterview and other publications. Visit http://www.stockinterview.com to read all of his archived articles.