2949775153

2949775153



United States of America

Bureau of Land Management within the U.S. Department of the Interior

Management of U.S. public lands and leases on federal land

Federal

U.S. Forest Service within U.S. Department of Agriculture

Administration of the national forests and leases on federal forest land. (Does not address projects on private lands.)

Federal

United

Kingdom

Department for Business Enterprise & Regulatory Reform

Regulation of methane rights

National

Source: Global Overview of CMM Opportunities, Coalbed Methane Oulreach Program, U.S. EPA, September 2008.

Generally, key CMM stakeholders aside from govemment bodies include:

•    Mining companies (operator of hard coal mines and project hosts);

•    Eąuipment manufacturers (methane treatment and utilization eąuipment, and power generation eąuipment supplier);

•    Project developers (project opportunity identification and planning);

•    Engineering and consultancy (technical assistance, i.e. testing, consulting and engineering);

•    Universities and research establishments (research and technical assistance);

•    Engineering and construction companies (CHPs, power plant engineering and construction companies, and drilling contractors);

•    Natural gas transmission and distribution companies, and power companies (pipeline sales for power generation); and

•    Professional associations (establishing project networks, and advising members on technical, economic and legał issues).

Development of CMM recovery and utilization projects is highly dependant on the demand side of the methane market, the availability of CMM and project financing. Most of CMM demand potential comes from natural gas markets (for example, in the U.S. most CMM is sold via natural gas pipeline), electricity markets (for example, in the UK new CMM utilization projects tend to be power generation projects), and heat generation and combined heat and power generation (potential CMM end usage in Germany). Emerging carbon markets also provide significant potential for CMM recovery and utilization projects.

Investment costs for CMM projects vary widely depending on the project characteristics, and can be financed through eąuity investments, loans, grants, carbon financing, or a combination of these sources. Some degree of eąuity financing is generally reąuired for loans in order to demonstrate that the developer is confident in the project’s success and shares in its risks. International experience shows “that debt to eąuity ratios of 60:40 (debt:equity) or 75:20 are not uncommon for intemational CMM projects under consideration in China. The actual ratio preferred by any given lender usually reflects the project’s perceived risk as well as the borrower’s financial stability” [1]. Table 3 provides an overview of key government bodies, private institutions and intemational organizations that provide loans, carbon financing and/or assistance for CMM recovery and utilization projects worldwide.



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