35
            
            
              Sustainability Report 2011
            
            
              
                Coalbed Methane and Coal-mine Methane Activities
              
            
            
              Based on the experience gained in the harvesting and use of LFG, we were able to
            
            
              expand this pioneering role with the opening of China’s first large-scale coalbed
            
            
              methane (CBM) liquefaction plant in Shanxi. CBM, a natural gas found in coalbeds,
            
            
              was, like LFG, traditionally considered a waste material and flared off on site.
            
            
              However using cryogenic technology developed in conjunction with a research institute,
            
            
              our liquefaction plant converts the purified CBM into liquid form by freezing it to
            
            
              -162 degrees Celsius. The resulting liquefied coalbed methane (LCBM) is 600 times
            
            
              more concentrated in energy intensity, making it easily transportable by road tankers
            
            
              to wherever it is needed. Making history when the first tankers began to roll out in
            
            
              December 2008, the plant is now fully commissioned – with the opening of its phase-
            
            
              two facility in March 2011, it reached its full production capacity of 250 million cubic
            
            
              metres a year.
            
            
              Environmental Performance      Clean Energy
            
            
              In view of the benefits of LCBM – it is
            
            
              a safe and environmentally-friendly
            
            
              energy providing a clean and quality
            
            
              fuel that is easily transportable, the
            
            
              extraction of CBM provides a safer
            
            
              working environment for miners,
            
            
              and it turns a highly polluting waste
            
            
              material into a valuable resource – we
            
            
              are exploring further opportunities in
            
            
              this market and are currently studying
            
            
              possibilities at a CBM well in Guizhou.
            
            
              In 2009, our LCBM plant was
            
            
              chosen as one of 50 Clean
            
            
              Energy Projects with the
            
            
              Highest Investment Value in
            
            
              China by the Financial Times
            
            
              and the China Chamber of
            
            
              International Commerce.