BEIJING, CHINA (September 23, 2004) – Yesterday, 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).  The grant will 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) from the Sihe mine site as a feedstock.  The grant illustrates USTDA’s ongoing commitment to assist China in enhancing its power generation capacity using clean energy.

The grant was conferred in a signing ceremony held at the U.S. Embassy in Beijing.  The Honorable Clark T. Randt, Jr., U.S. Ambassador to China, signed the grant agreement on behalf of the U.S. Government.  Mr. Yuan Zongben, Chairman, signed on behalf of JMC.

The Sihe mine site, which is owned and operated by JMC, was selected by the Chinese Government as the site for a demonstration project following a detailed assessment of the mine’s CBM and CMM production.  The mine began operations in early 2002 when about 1.5 million tons of coal were produced.  At present, the mine produces about 435,000 cubic meters (m³) of CMM per day, of which about 30 percent is captured and used, and 70 percent is vented into the atmosphere.  It is estimated that coal production at the mine will increase to 8 million tons per year by 2008, when CMM drainage will reach more than 500,000 m³ of CMM per day.

The USTDA-funded technical assistance program will provide JMC with detailed design and procurement assistance in the development and implementation of a new 120 MW power facility in Shanxi Province.  The design of the power plant is predicated on the use of captured CBM and CMM as a feedstock for the power plant.

The grant awarded today supports one part of a much larger Asian Development Bank-funded program in China.  In addition to the establishment of a 120-MW power plant fired by CMM and CMB, that program includes assistance to increase CMM and CBM production in China and establish transmission and distribution systems for end users. 

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.

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