2004 Press Release

USTDA Grant Supports 120-Megawatt Power Project in China

September 23, 2004

BEIJING, CHINA – Earlier today, the U.S. Trade and Development Agency (USTDA) awarded a $502,850 grant to the Shanxi Jincheng Anthracite Coal Mining Group Company, Limited of China (JMC) to fund a technical assistance program on the development of a 120 megawatt (MW) power plant that will use coal bed methane (CBM) and coal mine methane (CMM) as a feedstock. The grant illustrates USTDA's ongoing commitment to assist China in enhancing its power generation capacity using environmentally friendly methods.

The grant was conferred in a signing ceremony held at the U.S. Embassy – Beijing. The Honorable Clark R. Randt, Jr., U.S. Ambassador to China, signed the grant agreement on behalf of the U.S. Government. Yuan Zongben, Chairman of the Shanxi Jincheng Anthracite Coal Mining Group Company, Limited, signed on behalf of the Grantee.

The technical assistance supports one part of a much larger ADB-funded program that includes improved production of coal mine methane (CMM) via in-mine drilling, coal bed methane (CBM) production from new surface wells, and transmission and distribution systems for commercial, residential, and industrial end users, in addition to a 120 megawatt (MW) power plant fired by CMM and CBM. The technical assistance program will provide JMC with detailed design and procurement assistance in the design and implementation of the 120 MW power facility in Shanxi Province.

The Sihe mine site, which is owned and operated by JMC with estimated coal reserves of 3.5 billion tons, was selected by the Chinese government as a demonstration project site following a detailed assessment of its CMM and CBM production. The mine began operations in early 2002 when about 1.5 million tons of coal were produced and at present produces about 435,000 m3 of CMM a day of which about 30% is captured and used and 70% is vented into the atmosphere. It is estimated that coal production will increase to 8 million tons a year by 2008 when CMM drainage will reach more than 500,000 m3 of CMM a day. The design of the power plant is predicated on the use of captured CBM and CMM as a feedstock for the power plant.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

Visit USTDA's Website at www.USTDA.gov.