- With the ever increasing demand to meet the projected energy requirement inorder to sustain the GDP growth of 8%,with the dwindling of conventional energy resources, conflicting geo-political situations and alarming environmental degradation, there is a increasing impetus on development of coal based non-conventional clean energy resources.
- This leads to a favorable condition for entry of emerging national and international players, academic institutions and research organizations for the development of CBM/CMM/VAM/AMM/Shale Gas etc as:
- Developer of CBM/CMM blocks.
- Technology provider for commercial development of CMM/VAM/AMM/Shale Gas.
- Developing of infrastructure for gas transportation.
- R&D activities for pilot scale VAM/AMM/Shale Gas project.
- Activities for CBM development in India were taken up in early nineties when CMPDI made assessment of CBM in few areas of Damodar Valley Coalfields.
- The main thrust on development of CBM came with the formulation of CBM policy in July 1997 by the Government of India. The CBM policy provides attractive fiscal & contractual terms, which are considered to be one of the best in the world, with freedom to work in a free and flexible working environment.
- Some of the attractive terms offered by the Government are:
- No participating interest of the Government.
- No upfront payment.
- No signature bonus.
- Exemption from payment of customs duty on imports required for CBM operation.
- Walkout option at the end of Phase-I & II.
- Freedom to sell gas in the domestic market.
- Provision of fiscal stability.
- Seven years tax holiday.
- 33 CBM blocks have so far been allotted to different national and international operators for commercial development with prognosticated resource of 1.78 TCM through four rounds of global bidding.
- Commercial production has already started in few blocks and at present about 1.67 MMSCMD of CBM is produced and it is expected to increase rapidly as the commercial production will start in other allotted blocks (Source: DGH).
- More prospective CBM blocks are being identified for their allotment through future round of global bidding
- Govt. has allotted 2 CBM blocks (Jharia and Raniganj) to consortium of CIL & ONGC for commercial development. CMPDI is implementing this project on behalf of CIL. The development plans for both the blocks has been approved and commercial activity has started.
- CBM related data are being generated by CMPDI under Government funding to increase the resource base of the country which now stands at 3.4 TCM (source: CMPDI)
- Coal India Limited is currently operating more than 450 mines out of which there are 18 Degree-III U/G Mines (methane emissions >10m3/tonne coal produced) and 102 Degree-II underground Mines (methane emissions 1-10 m3/tonne coal produced).
- These underground mines may prove to be the best target for VAM project development. CMPDI has explored the possibility of VAM project in some of the D-III mines of ECL, BCCL and CCL.
- Few mines have been prima-facie found to be potential for VAM project, subject to feasibility of the project. Efforts are being made for taking up a demonstration/pilot project on VAM development in one of the identified prospective blocks to establish VAM technologies in Indian geo-mining conditions.
- Coal India Limited and several other coal producing companies are operating for more than several decades and there are many sealed out goaved out areas.
- These areas may have good prospect of methane as many of these mines are Degree-II or Degree-III gassy mines.
- A demonstration/pilot project related to extraction of methane from these areas may be beneficial.
- In line with the world’s changing energy scenario for cleaner source of energy, CMPDI along with other national and international organizations have undertook the job of potentiality evaluation of Shale Gas in Indian sedimentary Basins.
- CMPDI has carried out studies for shale gas potentiality in coal bearing basins for DGH.
- CMPDI is implementing a CIL R&D project on “Assessment of prospect of Shale Gas in Gondwana Basin with special reference to CIL areas” along with Advanced resource International (ARI),USA as a sub implementing agency. A S&T project on shale gas is also under implementation by NGRI, CMPDI and CIMFR.
- Preliminary results have shown a very good prospect of shale gas with certain technological challenges.
- A pilot or commercial venture in this field may prove the efficacy of the project in Indian scenario.