Capturing Carbon Opens Paths Into China Energy BEIJING --
China is expected to produce more greenhouse gas than any
other country over the next 20 years, but Beijing is
working to develop technology that can capture carbon
dioxide and store it underground.
And these efforts are creating new investment opportunities
for foreign companies as the more common paths into
China's energy sector are being closed off and reserved
for state enterprises.
Carbon sequestration, the removal and storage of carbon
dioxide, a gas tied to global warming, is gaining more
attention in China because of the country's vast coal
reserves, aging oil fields and new coal-fired power
stations. Burning coal produces carbon dioxide.
The U.S. and other countries are trying to develop power
plants that trap carbon dioxide and stick it underground,
perhaps to help recovery in aging oil fields or to use in
other industrial contexts.
Carbon sequestration is still in the early phases of
development, but there is increasing interest, despite the
The latest reminder came Friday, when energy companies from
Hong Kong and Canada said they would team up with
China's leading producer of natural gas from coal.
Hong Kong-listed Enviro Energy International Holdings Ltd.
and Canada's Petromin Resources Ltd. signed a deal with
China United Coalbed Methane Corp. for a five-year project
in the coal-rich province of Shanxi in northern China.
Supported in part by funding from the Ministry of Science
and Technology, the 10 million yuan ($1.4 million) project
will involve drilling wells in a coal bed that is 1,000
meters below the surface and unsuitable for commercial
mining. Canada's Alberta Research Council will provide
"The ultimate target for this project is to try to
capture CO2 from power plants and chemical plants and then
inject this C02 into the deep coal [bed] and also to
enhance coal-bed-methane production," said Sun
Maoyuan, chairman of China United Coalbed Methane.
China wants to increase the use of methane, the explosive
gas that has caused scores of deadly accidents in
China's coal mines. Typically, methane is just burnt
off, releasing more greenhouse gases, but it can be
captured and used to power turbines in power plants.
China wants the methane from coal beds to supplement
natural-gas supplies. Two-thirds of China's energy
needs are met by coal, which produces around three times
more carbon dioxide than gas-power generators. A typical
500-megawatt power station emits more than 13,000 tons of
carbon dioxide a day.
Rising electricity demand has forced China to add more than
90 gigawatts of power-generating capacity in each of the
past two years. That is equivalent to the combined
generating capacity of the U.K. and France in 2006-07. A $9
million test project at the nearby South Qinshui Basin in
Shanxi province, involving the Alberta Research Council,
the Chinese Ministry of Commerce and China United Coalbed
Methane, showed that methane rates nearly double to 55%
when carbon dioxide is injected into the coal bed.
Write to David Winning at firstname.lastname@example.org
Excerpt from: http://online.wsj.com/article/SB120147840362020717.html
Under the guidance of Petromin Resources Ltd and the
Canadian Heavy Oil Association, Canada formalizes strong
ties to the Kuwait Oil industry.
The World Energy and Chemicals Exhibition and Conference
(WECEC) held its event for the first time in Kuwait from
October 22-25, 2007. Although modest by international
standards such as OTC or the Global Petroleum Show in
Calgary, it was undoubtedly the largest oil and gas event
ever held in Kuwait. The central theme of the exhibition
and accompanying seminars/presentations was heavy oil and
thanks to a close collaboration between Petromin Resources
Ltd, the Canadian Heavy Oil Association (CHOA), Natural
Resources Canada/CANMET, the Alberta's International,
Intergovernmental & Aboriginal Relations Department and the
Embassy, the Canadian presence at this event was quite
significant. This strong Canadian presence combined with an
aggressive communication strategy from Petromin and the
Embassy, ensured that the Kuwait oil and gas industry
became aware that Canada is the best worldwide source for
solutions to problems associated with heavy oil.
Under the aegis of Petromin Resources Ltd. and the Canadian
Heavy Oil Association, Canada had six booths, including an
Embassy/Government of Alberta information booth,
incorporated into a single Canadian stand. Occupying the
other spaces were Kudu Industries Inc, SNC-Lavalin, Worley
Parsons - Colt Engineering and Regent Energy Group. Other
Canadian companies and organizations present were the
Alberta Research Council, Evans Consoles, CANMET, Imperial
Oil, Suncor Energy Inc., MEG Energy Corp., University of
Calgary, Aquaguard, and Well Resources Inc. In addition to
the exhibition, the Canadian contingent coordinated by
Petromin presented approximately forty per cent of the
technical papers over the course of the four day
As an unofficial conclusion to the Conference, on October
25, 2007, three dailies, Al Qabas, Al Watan and Annahar
published an interview with Dr. Hassan Hamza, Director
General of CANMET, on his views with regard to the future
of the oil industry in Kuwait and to negotiations underway
between Kuwait and Canada for the exchange of expertise and
the transfer of Canadian technical know-how to the Kuwait
This was a successful event for Petromin Resources Ltd. and
the Canadian petroleum industry. It also was a successful
event for the post and its partners which included the
government of Alberta, Natural Resources Canada (CANMET)
and the Canadian Heavy Oil Association (CHOA) - a
cooperative effort which was a win for all concerned. This
event was also one on which we can build to support
Canadian industry. Our success at the WECEC has raised the
profile of Petromin Resources Ltd. and our ability to
direct and apply Canada's expertise in heavy oil to Kuwait.
Since the event, Petromin has made several advances towards
initiating business in Kuwait, formalizing a JV agreement
with United Oil Projects to propose plans to implement CO2
injection for Enhanced Oil Recovery in Kuwait. In addition,
Management will be visiting Kuwait at the end of February
to continue talks with the Kuwait Oil Company in regards to
Heavy Oil development projects in Northern Kuwait.