AGL buying into Coal Mine Methane for power generation

AGL announced yesterday that it had reached agreement with CSM Energy to acquire a cornerstone investment of 35 per cent in CSM Energy for $3.0 million. CSM Energy has a strategic business focus of pursuing Coal Mine Methane (CMM) gas extraction and commercialisation.

CSM Energy has a number of agreements with coal mine operators to pursue CMM projects in Queensland and has originated a number of project opportunities in New South Wales.

CMM is potentially a major natural gas resource within mining leases. CMM gas has traditionally been a waste product for coal miners, however tighter environmental development conditions are leading to numerous opportunities to provide gas extraction services to the coal mine sector. A range of gas commercialisation initiatives arise from participating in CMM projects such as power generation and wholesale gas sales.

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