430F98090
Coalbed   Methane
Clearinghouses:
An  Introduction  to  Information
Centers  in Russia and  China
Coalbed Methane Clearinghouses (also known as Coalbed Methane Centers) are contributing invaluably
to the promotion of coalbed methane as an alternative energy resource in countries where develop-
ment of coalbed methane is in its earliest stages.  Through outreach and educational efforts, the
Centers address the major challenges encountered by countries seeking to promote a coalbed methane
recovery industry, notably:

    A The absence of information about coalbed methane project opportunities;
    A The lack of information about domestic expertise in the area of coalbed methane recovery; and

    A The unfamiliarity of interested parties with governmental procedures for energy investment.

The parties interested in coalbed methane recovery projects are varied and range from private
businesses to foreign and domestic government agencies to private and multinational financial
institutions. There are currently two Coalbed Methane Clearinghouses, one each in China and Russia.
The China Coalbed Methane Clearinghouse is located in Beijing and the Russia Coalbed Methane
Center is located in Kemerovo, in close proximity to Russia's main coalbed methane rich, coal-
producing region. Both China and Russia are major coal mining countries and both have extensive
coalbed methane reserves.


How  Does a Coalbed Methane Clearinghouse Operate?

Coalbed Methane Clearinghouses are staffed by persons knowledgeable in many aspects of coalbed
methane recovery in their respective countries. They have access to a wide network of domestic and
international contacts, who can provide them with the most current information on coalbed methane
recovery. The Centers undertake a variety of projects, including:
    A Identifying project opportunities;
    A Creating a domestic industry network for information exchange and project development, and
      connecting potential developers with these contacts;
    A Providing logistical support to various organizations by arranging meetings with key officials and
      providing translation for participants;

    A Researching and publishing technical documents, including journals and reports;

    A Recommending policies on coalbed methane recovery to government agencies;

    A Supplying information about recent technological advancements in methane recovery
      from coal seams;

    A Consulting and providing analytical support on specific mines; and

    A Maintaining an up-to-date database with coalbed methane data.

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                              What Specific Services  Can  I  Expect From a Clearinghouse?

^                            Both the China Coalbed Methane Clearinghouse (CCMC) and the Russian Coalbed Methane Center
 2                            (RCMC) provide an array of services designed to ensure that potential participants in coalbed methane
^                            recovery are fully educated on the technical, financial, and domestic issues surrounding coalbed
-o                            methane recovery.  These services include:
 c
 £                            Assisting Government and Lending Organizations. In most countries, several different
                              government ministries and agencies are responsible for various aspects of coalbed methane-related
                              matters. Centers serve as a non-partisan, educational resource for government agencies involved in
                              coalbed methane issues. Additionally, the Centers can assist with economic and financial analyses.
                              Both Centers are capable  of performing project finance modeling.
(j                                A The CCMC assisted the Asia Pacific Economic Cooperation's Coal Mine Gas Project in
                                     identifying a coal mine gas use project in  China.
                              Organizing Technical Seminars and Symposia.  Because of the wealth of knowledge
                              contained within these Centers, the Centers are well-suited to hosting seminars, workshops, and
                              symposia related to coalbed methane projects. In the past, various subject matters have been discussed
                              including: international achievements in coalbed methane recovery and use; application of particular
.o                            technologies for enhanced methane recovery; and options for financing methane projects.  Examples of
                              recent activities include:

                                  A The United Nations-sponsored 1995 International Conference on Coalbed Methane, which was
JE                                   organized by the CCMC, and
*?                                A The RCMC's seminar on directional drilling techniques for the Kuzbass Coal Basin mines.
 • •

                              Providing Logistical Support. The Centers provide logistical support to companies interested in
                              developing coalbed methane resources. This function is especially useful for foreign companies that
                              need help establishing contacts, arranging meetings and mine tours, and finding translation and
                              transportation assistance.
 t)
(j                                A The CCMC helped the Finland-based Wartsila Diesel Group meet with key organizations in
 «                                   China's power generation market.

                              Promoting Coalbed Methane Development Policy. The Clearinghouses can produce
Z                            documents for use in formulating coalbed methane development policies and regulations.
                                  A At the request of China's Ministry of Coal Industry (MOCI), the CCMC prepared a report on
                                     coalbed methane development in selected coal producing countries. MOCI used this report to
(j                                   aid in  establishing policies on coalbed methane development in China.
                                  A The CCMC helped establish incentives to develop coalbed methane, such as a law exempting
                                     coalbed methane producers from royalties and land occupation fees for production of up to 2
                                     billion cubic meters of methane per year.
                                  A The RCMC is collaborating with th$ Russian government on incorporation of coalbed methane
                                     into climate change mitigation policy.

                              Publishing  Technical  Periodicals. Both Clearinghouses publish technical  periodicals, in native-
                              languages and English. These periodicals are widely read by the coalbed methane industry.

                                  A The CCMC publishes two Chineserlanguage and one English-language journal each year.

                                  A The RCMC publishes three Russian-language and one English-language newsletter annually.

                              To receive copies of these informative  publications, please contact the individual  clearinghouses.
                               Refer to the "For More Information" section on page 4 for additional details.

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Preparing and Translating Reports. The Centers produce, translate, and distribute a
variety of useful reports related to coalbed methane exploration and development.
Additionally, the Centers assist in translation for coalbed methane related business activities.

    A The RCMC translated a U.S. EPA report on the potential to recover coalbed methane
       from the Kuznetsk coal basin of Russia. This translated report provided Russian
       stakeholders in the coal mine methane industry with information on the current and future
       potential for developing coalbed methane resources and attracting Western capital.

Building Alliances. One of the most important services the Centers provide  is the linking
of the mining industry with coalbed methane researchers. For example, the Centers often
assist universities with energy technology programs by writing proposals for methane recovery
and use projects.
    A The CCMC  provided extensive information on coalbed methane development to
       Southwest Petroleum University of China. With assistance from the Clearinghouse,
       the University was awarded a contract for coalbed methane research projects from
       the Pingdingshan Coal Mining Administration.

Collecting and Analyzing Data.  Clearinghouses obtain information on coal
production, methane emissions, energy prices, technology, and government policy for private
companies  and government organizations.  Much of this information is regularly updated and
easily retrieved.

    A The RCMC assisted the U.S. EPA and the Kirov Mine by researching capital and
       operating cost estimates used for a proposal to convert coal fired boilers to coalbed
       methane fueled boilers.

    A The CCMC and RCMC provided key data used in the U.S. EPA's reports on coalbed
       methane opportunities in China and Russia, respectively. These reports are available
       from the EPA Coalbed Methane  Program.

Conducting Economic Analyses of Potential Projects.  Both Centers have highly-
skilled staff capable of helping interested parties determine the economic viability of coalbed
methane recovery projects in China/Russia.

    A The CCMC  uses its Coalbed Methane Financial Analysis Model to evaluate the
       potential  profitability of a coalbed methane recovery and use project, which can be
       accessed  by private business interests. CCMC can use this model to  help
       interested parties measure investment opportunities.

With increasing interest in coalbed methane project development, and heightened
environmental awareness, the clearinghouses are realizing a substantial need for their services
and are constantly seeking ways to better serve a growing client base.  Regardless of the
coalbed methane issue, the Centers' team of dedicated and knowledgeable staff can tap a
variety of resources  to meet your needs.

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                          For More Information
                          For more information concerning the China or Russia Centers, or to order U.S. EPA publications on
                          coalbed methane recovery and development in these countries, please call the toll-free hotline, in the
                          U.S., at l-888-STAR-YES (1-888-782-7937)

                          To /earn more about the CCMC, please contact:
   Dou Qingfeng, Director
   China Coalbed Methane Clearinghouse
   21  Hepingli Beijie
   RO. Box 1419
   Beijing 100713
   China
                              Phone: (86) (10) 6421 -7766 ext. 24414
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   Fax: (86) (10)6420-1328

   Internet address: abd310@istic.sti.ac.c i

To /earn more about the RCMC, please contact:
                                 or 6241-5187
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   Dr. Oleg Tailakov, Director
   Russian Coalbed Methane Center
   21 Rukavishnikova St.
   Kemerovo 650625
   Russia

   Phone: (7) (3842) 259-300 or  259-366
   Fax: (7) (3842) 211-838

   Internet address: tailakov@mail.stanetfu
                                                                    Russian Coalbed
                                                                           MetHLane Center

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