Hwange to Explore Methane Gas

 

Source: The Herald (Harare)

Date: September 27, 2005

Author: Anon

Hwange Colliery Company Limited (HCCL) is now working on ways of extracting coal bed methane gas as the exploration for alternative energy sources intensifies.

The exploration is in line with efforts by stakeholders in the energy industry, including Government and the Reserve Bank of Zimbabwe, to ease fuel shortages.

Hwange Colliery Company announced last week it had received funding from RBZ specifically for exploration of coal bed methane gas.

"The company secured funding from RBZ for exploration of coal bed methane gas in the Hwange area.

"This will enable the exploitation of new business opportunities," said Hwange in a statement.

Zimbabwe is studying the possibility of extracting liquid fuels from coal as the country seeks long-term solutions to diesel and petrol shortages.

The Hwange Colliery Company coal bed methane extraction is one of the projects expected to tap new energy sources.

Apart from coal bed methane gas, Zimbabwe has taken a cue from South Africa, which derives at least 40 percent of its fuel needs from Sasol, touted as the biggest oil-from-coal plant in Africa south of the Sahara.

According to sources, a company charged with the specific responsibility of extracting liquid fuels from coal will soon be operational.

A number of technical and financial partners are expected to come on board to ensure that the project becomes a reality.

In its initial stages, the programme is expected to gobble billions of dollars in both local and foreign currency but this would be more than offset by the cheaper price of the fuel produced.

About 15 percent of Zimbabwe's total energy consumption is oil-based which translates to about 1,2 billion litres of oil imports a year at considerable expense in scarce foreign exchange.

The situation has been worsened by the persistent rise in international oil prices, currently pegged at around US$68 per barrel, which are eating into many non-oil producing countries' meagre foreign currency reserves.