Coal bed methane (CBM), also known by other terms such as coal seam gas, coal-mine methane, and coalbed gas, is a kind of natural gas derived from coal beds. It has gained popularity in recent years as a sustainable energy source.
Market Drivers and Forecast (2023-2029)
According to OMR Research, the global coal bed methane market is projected to grow at a CAGR of 6.7% during the forecast period (2023–2029). The key factor that is driving the CBM market is the variety of applications for it. For instance, it is used in wastewater treatment, in the chemical industry, in steel factories and rolling mills, as a fertilizer for feedstock, in coal drying, as supplemental fuel for mine boilers, and others. A significant increase in worldwide power usage is also boosting market expansion.
A significant increase in worldwide power usage is also boosting market expansion. According to the International Energy Agency (IEA), by 2030, global electricity consumption will increase by 5,900 terawatt-hours (TWh) under the Stated Policies Scenario (STEPS) and by more than 7,000 TWh under the Announced Pledges Scenario (APS). The increasing electrification of heat and buildings, as well as the rising demand for digitally linked products, are driving the increase. According to Enerdata’s World Energy & Climate Statistics, in 2021, the total consumption of electricity was highest in China, followed by the US and India, and the power generation statistics are also dominated by these countries in the same way. Hence, these regions will dominate the CBM market as well.
Apart from this, CBM is an environmentally friendly energy source that is utilized in power generation. CBM is converted into liquefied natural gas (LNG), which is considered a clean energy source and has high demand across the globe. The governments are also promoting the use of CBM as an environmentally friendly energy source, as well as launching new programs and regulations for the same, such as the US Environmental Protection Agency's (EPA's) Coalbed Methane Outreach Program (CMOP). This is expected to create lucrative opportunities for the growth of CBM in the near future.
The exploration cost of CBM is also less compared to that of other gases. As a result, CBM exploration activities are expected to increase in the near future, contributing to the CBM market's growth. According to the Directorate General of Hydrocarbons, India has the fifth-largest known coal reserves in the world, providing substantial opportunities for CBM exploration and production. India's CBM resources are estimated at roughly 92 trillion cubic feet (TCF) or 2,600 billion cubic meters (BCM). India's coal and CBM deposits are spread throughout 12 states. The majority of coal and CBM reserves are found in the Gondwana strata of eastern India.
Recent Developments
The key companies in the global coal bed methane market include AAG Energy Holdings Ltd., Anglo American plc, Arrow Energy Pty Ltd., Australia Pacific LNG, BP plc, Carbon Creek Energy, LLC, ConocoPhillips, CONSOL Energy, Constellation Energy Partners, Ember Resources Inc., Exxon Mobil, and others. These companies are engaging in different mergers and acquisitions, investments, expansions, and other operations to help the market grow. Some of the most recent market developments include-
• In December 2022, Invenire Petrodyne Ltd. (IPL) received a license for the production of CBM in Block SP-ONHP (CBM)-2021/1 from the state government of Madhya Pradesh, India. The area covers 1,771 square kilometers spread across Chhindwara and Betul in Madhya Pradesh.
• In June 2021, Coal India (CIL) began producing CBM in Jharkhand, India, from its leasehold area within Bharat Coking Coal (BCCL). As part of its diversification goals to develop clean energy from coal, it was the first time a coal miner began generating gas from coal seams.