RANCHI: In a major breakthrough, Coal India’s first Coal Bed Methane (CBM) project is rapidly taking shape in the Jharia Coalfield of Dhanbad, with large-scale commercial production of methane gas expected to begin within the next year. Besides generating revenue worth thousands of crores of rupees, the project is poised to provide a cleaner source of energy for households, industries and the fertiliser sector.
The initiative is also expected to significantly improve mine safety by reducing methane accumulation in coal seams, while helping address long-standing challenges such as land subsidence and underground mine fires in the Jharia region.
Notably, Coal Bed Methane is a form of natural gas trapped within coal seams under high pressure during the geological process of coal formation over millions of years. With a calorific value of around 8,500 kilocalories per kilogram, comparable to natural gas, it is regarded as a clean and efficient fuel.
According to BCCL CMD Manoj Agrawal, the coal bed methane found within the coal seams can be extracted scientifically and used as a source of energy.
“We have identified a deposit of nearly 25 billion cubic metres of coal bed methane spread over 33 square kilometres in Munidih and have initiated the process to extract it. In this regard, we have already completed drilling five boreholes and five test wells; gas is already being extracted from two of them. We expect to start production within a year after laying commercial pipelines,” said the BCCL CMD.
The project is being executed by Prabha Engineering and Construction and is expected to generate revenue of around ₹125 crore per year, he added.
According to Agrawal, one of the most significant benefits of the project is improved mine safety. Extracting methane gas from underground coal seams will help reduce the risk of gas-related accidents, creating a safer working environment for miners, he said.
“Methane accumulation in mines has often led to fatal incidents during mining operations, making its systematic extraction a crucial safety measure. As the methane is extracted from the mines in advance, there will be fewer chances of any mining hazard,” said the CMD.
A key feature of the project is that the produced gas can be directly connected to the national gas grid.
Agrawal further added that it would be a much cleaner and greener source of energy, as it does not produce the same level of carbon emissions associated with coal. Compared to conventional coal-based energy, methane extracted through this process can significantly reduce environmental impact while providing an efficient fuel source, he said.
The CMD further explained that the project is also expected to yield significant economic benefits. It is estimated that once commercial production begins, the annual business turnover will be around ₹1,424 crore, while BCCL will generate annual revenue of approximately ₹124.5 crore. In other words, besides coal, gas will now become a new source of income for BCCL as well.
Experts also opined that, since India is among the world’s leading coal-producing nations, there is immense potential for methane gas extraction here as well. Methane gas can be utilised in sectors such as domestic PNG, CNG, industrial gas, chemicals, fertilisers and automobiles, among others, they said.