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Green Gas and A.A. Skochinsky Institute of Mining join forces in Russia

World Coal,

Green Gas International and the A.A. Skockinsky Institute of Mining (SIM) have announced the signing of a co-operation agreement. The agreement facilitates the joint development of coalbed methane (CBM) drainage and utilisation projects in the Russian Federation through a joint venture company.

The joint venture partners aim to develop the Russian coal mine gas market through sustainable and proven solutions to transform polluting methane gas from coal mines into clean energy. The partnership will carry out coal mine methane projects to mitigate the effect of climate change through the capture and conversion of hazardous methane into valuable energy to supply to the region. The other significant benefit is that this results in substantial reductions of CO2 emissions.

The partnership is expected to be highly effective due to the combination of the successful track record of Green Gas in climate mitigation projects, and SIM’s in-depth knowledge of the local market requirements and regional experience with coal mines.

Bob Shekleton, Green Gas managing director for Russia, Ukraine and China, commented: "Green Gas International is excited to work with a partner such as SIM and to provide our international experience, project development and management capability (invest, design, build and operate) to jointly develop and implement projects in the Russian Federation. SIM’s pre-eminent position and detailed knowledge of the Russian coal mining industry adds greatly to the capability of the team."

Igor Levankovskiy, acting director general of SIM expressed his pleasure at the prospect of cooperating with Green Gas. In addition, he noted that: “We expect to have identified specific commercial projects by the end of 2011. This will help ensure a solid foundation for future sustainable growth. This joint venture marks an important step in bringing proven international expertise and technology to provide a commercially attractive solution for Russia’s coal mining industry.”

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