China will intensify its administration on coal mine methane (CMM) to promote utilization of CMM, said Wang Shuhe, vice director with the State Administration of Coal Mine Safety at the 8th International Symposium on CBM/CMM and Carbon Trading in China.
As a country with the largest CMM emission and largest coal output, China has launched 60 CMM projects with total annual CMM production capacity of 240 million cubic meters, which could be used as town gas for 500,000-odd families and as power generation resources.
So far, Jincheng Mining Industry Group has established the world"s largest CMM power plant in Shanxi province with 120 megawatt installed capacity.
Compared to coal bed methane (CBM), CMM has better prospects. Firstly, the cost of CMM projects is relatively low. Secondly, CMM projects enjoy more favorable policies from the government. As a form of Clean Development Mechanism (CDM), more carbon emission reduction quotas could be applied for CMM projects.
Besides, Chinese government now gives 0.25 yuan per kilowatt hour as subsidy for CMM projects for biomass power use, and 0.2 yuan per cubic meter for CMM projects for household use.
However, the biggest obstacle for CMM development in China resides in drainage technology. Most domestic CMM projects borrow technologies from other countries like the U.S. and Australia. With increase investment in CMM projects, China"s CMM technologies are getting mature.
Though CMM projects in China remain relatively slow in scale expansion and non-profitable, they are expected to make profit in 4 years after CMM projects go into commercial operation.
Sun Xin, vice director with Information Research Center of the State Administration of Coal Mine Safety, disclosed that foreign investors hope to cooperate with China"s coal mine enterprises on CMM projects as soon as possible when a large number of foreign companies divest from Chinese market amid international financial crisis.
She said that CMM projects will see a growing trend for China"s clean development, and she also believed that Chinese government will carry out more favorable policies for the huge potential CMM market in China.
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