On April 2, Qin Rupai, a member of the Standing Committee of the Guizhou Provincial Party Committee and Vice Governor of Guizhou Province, held talks with Lan Zhihuai, Chairman of Sichuan Dacote Energy Technology Co., Ltd., and Xue Cunhe, CEO of SoftBank (China) Investment Co., Ltd., regarding Sichuan Dacote Energy Co., Ltd.’s establishment in the Gui’an New Area and its participation in Guizhou Province’s coal-mine gas management and utilization as well as coal-chemical projects. During the meeting, Chairman Lan briefed Governor Qin on Dacote’s corporate profile, its technology for purifying low-concentration coal-mine gas, its coal-chemical technologies, and the company’s plans to invest in Guizhou and set up operations in the Gui’an New Area. Governor Qin expressed his approval and welcome for these initiatives and arranged for leaders from the Gui’an New Area Administration and the Gui’an Electronic Information Industry Park Management Committee who attended the meeting to engage in detailed discussions on the next steps.

On October 22, Ren Runhou, Vice Governor of Shanxi Province, visited Shanxi Ruiyang Coalbed Methane Company for an inspection, accompanied by Zhang Qingheng, Chief Engineer of Yangmei Group, and Zhang Weixing, Assistant to the General Manager and Head of the Development Planning Department. He urged Ruiyang Coalbed Methane Company to prioritize safety, intensify the specialized and large-scale development and utilization of coalbed methane, accelerate the “Gasification of Shanxi” initiative, and elevate coal mine gas management and coalbed methane extraction and utilization to a new level.

Recently, the results of the “National Development and Reform Commission’s Low-Carbon Technology Innovation and Demonstration Project for the Coal, Power, Construction, and Building Materials Industries” were announced. The 50,000-ton-per-year oxygen-enriched coalbed methane liquefaction project of Shanxi Ruiyang Coalbed Methane Co., Ltd.—in which Sichuan Dacote Energy Technology Co., Ltd. holds a stake and serves as the general contractor—was recognized as a low-carbon technology innovation and demonstration project and was included in the National High-Tech Industrial Development Program and its associated investment plan. This project represents an innovative initiative by Shanxi Yangmei Group for the development and utilization of low-concentration coal mine gas, and it was designated as a key project for 2012 under the supervision of the State-owned Assets Supervision and Administration Commission of Shanxi Province. The total investment for the project amounts to RMB 249 million, with Phase I accounting for RMB 140 million and a total construction area of approximately 100,000 square meters. Sichuan Dacote Energy Technology Co., Ltd. is responsible for the construction, employing exclusively its independently developed specialized adsorbents and proprietary process technologies. In Phase I, oxygen-enriched coal mine gas extracted from underground at concentrations of 20–35% and at a flow rate of 12,500 cubic meters per hour will be enriched, deoxygenated, denitrified, and compressed to achieve a concentration of over 95%, thereby producing CNG (compressed natural gas). In Phase II, the feed gas flow rate will increase to 33,000 cubic meters per hour; after purification and liquefaction, the project is expected to produce 50,000 tons of LNG (liquefied natural gas) annually. The Phase I CNG production unit was installed and commissioned successfully in early September 2012 on the first attempt, with all performance indicators meeting or exceeding design specifications, and officially entered into operation on September 20, 2012. Over the past year and more of operation, the unit has demonstrated safe and reliable performance, with all operating parameters remaining stable and within normal ranges. This project is currently the world’s first system that utilizes low-concentration coal mine gas to produce CNG and has achieved successful commercial operation. The resulting product can be used as industrial fuel, domestic fuel, propulsion fuel for vehicles and ships, and chemical feedstock, among other applications, offering broad market prospects. The success of this project is of great significance for optimizing China’s energy structure and advancing energy conservation and emissions reduction. It sets a precedent for the development and utilization of low-concentration coal mine gas nationwide and globally, serving as a highly exemplary model for future coalbed methane development and utilization. Moreover, the project delivers substantial economic and social benefits and holds considerable potential for widespread replication.

Research and Markets, a leading provider of market data, recently released a report forecasting the growth of the global biofuels market, concluding that the sector is experiencing unprecedented expansion. Global demand for biofuels is expected to increase by 20% by 2011, with bioethanol and biodiesel accounting for a significant share of the market.

Shanxi Ruiyang Coalbed Methane Co., Ltd., jointly established by Sichuan Dacote Energy Technology Co., Ltd., Shanxi Yangmei Group, and Shanxi Guorui Energy Investment Company, has adopted the world-leading coal-mine gas enrichment technology developed by Sichuan Dacote Energy Technology Co., Ltd. Following one year of construction, the plant was commissioned on August 30, 2012, and began producing qualified products on September 10, achieving successful startup on the first attempt. All performance indicators met or exceeded the anticipated targets. Testing of the product gas revealed a methane content of ≥96%, an oxygen content of ≤0.1%, and compliance with all other national standards for CNG fuel gas.

In the September 26, 2011 issue of the Coal Section of China Electric Power News, titled “Coalbed Methane Utilization to Reach 14 Billion Cubic Meters in the Next Five Years” (reported by Li Qingzhen), the latest developments in the exploration and development of coalbed methane in China were highlighted. The article also introduced our company’s technology for concentrating firedamp and affirmed its advanced nature and reliability. The specific content of the report is as follows: