Coal Bed Methane (CBM)

Coal Bed Methane (CBM)

Subject: Environment

Context: Need for move away from fossil driven energy economy to the cleaner renewable source along with India’s continuing dependence on coal for energy needs necessitate focus on “Clean Coal Technology”. Coal Bed Methane, or CBM is seen as one of the alternatives.

Concept:

• CBM is an unconventional natural gas that occurs in coal beds in adsorbed form during coalification process (transformation of plant material into coal) and is rich in methane content.
• It can be used for power generation, running internal combustion engines and as domestic fuel on commercial lines. Focus on exploration will also push additional scope for increased employment and state revenues.
• With fifth-largest coal reserves in the world India has huge potential (Gondwana sediments of eastern India holding the bulk potential; Damodar Koel valley and Son valley are major regions). Its CBM resources are estimated at 92 trillion cubic feet (TCF).

Challenges

• Methane is 25 times more potent greenhouse gas than carbon dioxide.
• It has huge challenges for soil and ecosystem of the region.
• Water discharges from CBM development could pollute downstream water sources
• It also poses safety challenge in underground coal mines (proper ventilations is needed for workplace and carrying out mining operations).

India’s Policy so far

• In order to harness CBM potential in the country, the Government of India formulated CBM policy in 1997 wherein CBM being Natural Gas is explored and exploited under the provisions of OIL Fields (Regulation & Development) Act 1948 (ORD Act 1948) and Petroleum & Natural Gas Rules 1959 (P&NG Rules 1959) administered by Ministry of Petroleum & Natural Gas (MOP&NG) and the Directorate General of Hydrocarbons (DGH) was made the nodal agency for development of CBM in the country
• Both Petroleum and Coal Ministries were jointly made responsible for developing the resource.
• Delineation of CBM blocks was to be done only in consultation with the Coal Ministry.
• The Central Mine Planning and Design Institute Ltd (CMPDIL), a subsidiary of Coal India Ltd (CIL), was made the nodal agency for delineating CBM blocks.
• By 2019 there were only 4 operational blocks with exploration much below potential as only 1.87 mmscmd (million metric standard cubic meter per day) of CBM production (Australia started at same time with 109 mmscmd production)
• Two major reforms: 1) Public sector coal companies were permitted to explore and extract CBM from the leasehold areas held by them without seeking separate lease for gas extraction. 2) Freedom to fix the price and sale of gas was extended by the government to all operators of CBM.