Enviro Energy starts China carbon capture project

28 January 2008 10:08  [Source: ICIS news]

SINGAPORE (ICIS news)--Hong Kong-listed Enviro Energy said it plans to develop a yuan (CNY) 10m ($1.4m) carbon capture project over five years with China United Coalbed Methane and Canada’s Petromin Resources.

The companies planned to inject carbon dioxide (CO₂) and increase production capacities of coal-bed methane in deep and unminable coal seams in China’s Shanxi province, it said in a statement on its website late on Friday.

The project would mark an important step to reduce CO₂ emission while increasing energy supply at the same time, the company said.

"The ultimate target for this project is to try to capture carbon dioxide into the deep coal [bed] and also to enhance coal-bed methane production," Sun Maoyuan, chairman of China United was quoted as saying in media reports.

China currently has about 30bn m³ of coal-bed methane reserves, approximately three times that of US. China’s exploration efforts and development potential has captured the world’s attention, resulting in numerous international collaboration efforts.

In late 2007, Shell China took a 55% stake in a joint venture with Vancouver-based Verona and China United to explore and produce coal-bed methane in a separate project in Shanxi province.

According to the 30-year production sharing contract, Shell has until December 2010 to conduct exploration activities. After that, it can develop the field for five years and spend 20 years on production.

($1=CNY7.21)

By: Serene Cheong
+65 6780 4359

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