Dutch based Green Gas International has formed a joint venture with Shanxi Energy Industries Group, a large Chinese, state-owned energy and coal company, and Shanxi Xingrun Coal & Coke Company, a Chinese private energy company, to improve degasification practices and implement mine gas utilization systems at coal mines in Shanxi Province.

The joint venture will operate under the name "Shanxi Energy Industries Group Green Gas Methane Management Company", aiming to develop one to two clusters of mine gas drainage and utilization projects of 20-30 Megawatts (electric) each in 2009 followed by a further target of 100 MWel, equivalent for implementation in 2010 and 2011.

The first 100 MWel equivalent of drainage and utilization projects that are to be developed, will consume approximately 200 million cubic meters of coal mine gas. This gas will produce some 700 GWh of electricity per annum, which is enough to power 200,000 households per year. In addition, some 3.0 million tons of CO2 equivalent emissions reductions will accrue every year.

Chris Norval, executive chairman and CEO of Green Gas International said that they were delighted to conclude a coal mine gas management joint venture with Shanxi Energy Industries Group and the Shanxi Xingrun Coal and Coke Company and looked forward to working with their partners. He added that the combination of their international experience with the local knowledge and experience of their partners would provide a mutually beneficial platform to increase mine safety in China, to mitigate methane emissions from Chinese coal mines and produce clean energy.

Shanxi is the largest coal producing province in China, producing over 600 million tons of coal in 2007. Over one third of China's coal bed methane reserves are situated in Shanxi. Exploitation of both CBM and coal mine methane are undertaken in the province.