Dynamic Energy to Cooperate in CBM Exploration

Dynamic Energy Holdings, a company which produces and sells coal in China, plans to cooperate with Xi’an Research Institute of China Coal Technology & Engineering Group Corp to explore for coal-bed methane (CBM) in Pingdingshan, Henan province, reports China Securities Journal, citing a company filing.

The institute will handle the engineering works for a number of extraction wells.

A total of 1,350 extraction wells will be built over two phases for the exploration of CBM in Pingdingshan.

Total investment on the exploration is expected to hit five billion yuan ($770 million).

The co-chairman of Dynamic Energy, Dr Wang Ruiyun, said CBM is likely to become the fourth-largest source of clean energy and obtain greater support from the government during the 12th Five-Year Plan period.