Australian company Dart Energy (ASX:DTE) is pioneering CBM’s use in the UK.
Coal bed methane (CBM) is a less well-known form of natural gas.
It is already used extensively in Australia and Asia and advocates say it can do the same for the energy supply in the UK as shale has for the US.
Eytan Uliel, the company’s chief commercial officer, told Proactive Investors that despite Dart’s extensive worldwide portfolio, its most advanced asset is the CBM Airth project, which is in fact in Scotland.
“There we have drilled our first test wells, we have encouraging results, we have entered into a long-term gas sales agreement with Scottish Southern Energy, we have at the same time certified our first reserves and on the back of all that, we are looking to move that project into commercial development in the near-term,” Uliel said.
A pilot-to-power project will utilise pilot well gas from Airth to generate electricity and provide first revenues from the field. The generator has now been installed on-site and first electricity sales are expected in the coming months.
UK-based IGas Energy (LON:IGAS) is also a firm believer in the potential of CBM in this country.
Earlier this year, the company told Proactive Investors that CBM remains its priority despite a shale gas discovery in Cheshire.
So while shale gas is making all the headlines in the industry, CBM’s potential should not be underestimated.
And with all this potential, it may only be a matter of time before we see CBM projects popping up all over the country.
