China Multi-Well Pilot Project for ECBM in Deep Coal:
Petromin in collaboration with the ARC now plans to design and implement a five year multi-well pilot CO2 injection - ECBM production and geological storage project in China. The objective of this project is to demonstrate that CO2 will enhance the production of (CBM) from the deep un-mineable coal seams. This project is the continuation of a single well micro-pilot test in Qinshui, Shanxi Province established between the Chinese and Canadian governments completed earlier this year in collaboration with the ARC. The Petromin/CUCBM multi-well pilot project will provide further valuable technical information that could lead to the commercialization of CO2-ECBM in China.
It is significant to note that this pilot project will be a milestone project for the clean development of China's deep CBM reserves. This project will be a key step towards reducing C02 emissions (and therefore global warming) while enhancing energy supply. CO2 geological storage is viewed as one of the most promising mechanisms to store large quantities of captured C02 emissions. As outlined in the Intergovernmental Panel on Climate Change (IPCC) Guide Book, this technology is looked upon as a major C02 mitigation method. CUCBM and Petromin feel that enough data and information can be obtained to evaluate commercial expansion of this type of project in coal fields in other parts of China. In other words, when proven feasible, the same type of pilot test can be implemented in other coal-rich regions of China.
In the proposed project plan, CUCBM will be the operator of the laboratory and field operations while Petromin and its associated partners will provide technical guidance, expertise and assistance in designing the pilot test. Petromin will contribute a minimum of CDN $500,000 towards project design work, data analysis and numerical simulation of the test results. Economic benefits from this project will be shared by CUCBM and Petromin which will be outlined in a final agreement.