sequestration

I don't know if any of you EPG holders have heard of this, but it could be another big positive in EPG's favour (along with all other CBM companies).

I first heard about it a few weeks ago when NZ's largest coal producer - Solid Energy - said they were undertaking trial programmes in the South Island.

Since then I've read that a number of large global companies (such as BHP) have been looking closely and spending a lot of research money (millions) in relation to CBM production methods.

They call it Enhanced Coalbed Methane Recovery and Sequestration.

What is it ?

Where CBM is used for electricity generation, the carbon dioxide(CO2) produced by the combustion of the gas may be captured and sequestered into the same coal seams from which the CBM was extracted.
Theoretically , coal seams absorb more than twice as much CO2 (by volume) as the methane extracted from them, offering a unique way of reducing greenhouse gas emissions from electricity production.

In fact this exchange ratio could imply that, in areas rich in coal, energy plants could be developed that would have an emission of CO2 per energy unit that is much lower than that of conventional energy plants or even approaches zero.

Also,
The injection of CO2 into coal seams is being trialled, both as a means of enhancing the recovery of CBM and for permanent CO2 storage. Research suggests that CO2 injected into coal seam reservoirs can displace the methane imbedded in the coal and therefore enhance it's extraction, theoretically allowing recovery of all the methane in place

Also,
The economic outlook for CBM-related sequestration also seems positive. Research suggests that this technology has the scope to deliver sequestrationat a cost of less than US$8.00 a tonneof CO2.
This compares with an average price per tonne of CO2 of US$10.00 for carbon credits traded in Europe over the sixth months to May 2004.

The advantages of injecting CO2 into coalbeds are numerous.
It sequesters the CO2 (greenhouse gas).
It shortens the production time for CBM.
It improves the recovery volume of CBM.

Info taken from..
Netherlands Institute of Applied Geoscience.
Society of Petroleum Engineers.
BHP Billiton - Coal bed methane clean power potential.

Cheers