Coalbed Methane
Coalbeds are another source of energy. CBM is naturally created during the geologic process of converting plant material to coal (coalification). To extract the methane, Maverick Energy drills wells into coal seams and pumps out ground water. Removing the ground water reduces the pressure and allows the methane to release from the coal to produce flowing natural gas.
A new report published in the US Proceedings of the National Academy of Sciences points out the environmental benefits of CBM. The report shows that electricity generated from CBM produces around half the carbon emissions as coal-fired electricity. This means CBM is part of the same ‘low-emission’ category as conventional natural gas produced from sandstone rocks.
States are starting to recognize the benefits of coalbed methane.
In May 2011, Indiana enacted S.B. 251, creating the Clean Energy Portfolio Standard (CPS), also known as the Comprehensive Hoosier Option to Incentivize Cleaner Energy (CHOICE) program. The program sets a voluntary goal of 10% clean energy by 2025, based on the amount of electricity supplied by the utility in 2010.
Up to 30% of the goal may be met with “clean coal” technology. Thermal energy used for heating, cooling, or mechanical work is eligible for the goal. In order to measure thermal energy for the purpose of goal compliance, it may be measured directly through a meter, calculated using an equation set forth in IAC 17.1, or a utility may seek approval from the commission to use an alternative equation.
Utilities may purchase, sell, or trade Clean Energy Credits, which are defined as 1 MWh of clean energy (as defined above) or 3,412,000 BTUs. Any excess amounts of clean energy supplied during a specific goal period or any Clean Energy Credits purchased from another supplier may be counted toward the next goal period. Other than this exception all clean energy sources must be in service, purchased or contracted for by the effective dates of the CPS program goals.