CBM Power Generation Market Size and Outlook

CBM power generation — Use of CBM as a fuel for electricity production.

The ability to use CBM gas for power generation is a vital component of the energy transition. As a relatively clean-burning fossil fuel, it can serve as a crucial "bridge fuel" that helps reduce carbon emissions by replacing coal in electricity generation. The process involves a CBM power generation plant taking the produced methane gas and using it to fuel a turbine or a reciprocating engine to generate electricity. This conversion of a locally sourced fuel into usable power is a major benefit for communities near CBM reserves.

The Power Generation Process
The process of CBM power generation is straightforward once the gas is at the surface. After the methane is extracted from the coal seam and cleaned, it is transported to a power plant, which can be located on-site or connected via a pipeline. At the plant, the gas is combusted in either a gas turbine or a reciprocating engine to produce mechanical energy, which is then converted into electricity by a generator.

A key benefit of on-site CBM power generation is that it minimizes the need for long-distance gas pipelines and reduces the energy loss that occurs during transmission. The electricity can be used to power the extraction operations themselves, or it can be sold to the local grid, providing a reliable and stable source of power for the community.

The Role of Methane Recovery
The process of methane recovery from coal mines is also a key component of this market. Methane is a potent greenhouse gas, far more effective at trapping heat in the atmosphere than carbon dioxide (CO 
2
​
 ). When coal mines are closed, methane continues to seep out of the coal seams. By capturing this gas and using it for power generation, we are not only creating a valuable energy source but also preventing a powerful greenhouse gas from escaping into the atmosphere. This dual benefit makes CBM power generation a powerful tool for both energy production and climate change mitigation.

Outlook for Power Generation
The outlook for CBM power generation is one of continued growth, particularly in regions that are transitioning away from coal-fired power plants. The ability to use a locally sourced, readily available fuel to provide a stable and dispatchable source of electricity will be a powerful driver of the market for years to come.