U.S. Relations with the People's Republic of China (2006)

U.S. Trade and Development Agency
1000 Wilson Boulevard, Suite 1600
Arlington, Virginia 22209
Telephone (703) 875-4357
Fax (703) 875-4009

FOR IMMEDIATE RELEASE

Media Inquiries: Donna Thiessen
(703) 875-4357

Coal Bed Methane Project In China Moves Forward Following USTDA-Funded Technical Assistance

BEIJING - (May 19, 2006) Facilitating the development of clean energy resources in China based on the nation's abundant coal supply, while strengthening U.S. commercial interests in China's growing energy sector, are the results of a U.S. Trade and Development Agency-funded technical assistance program for Shanxi Jincheng Anthracite Coal Mining Group (JMG). The success of the technical assistance was reflected in the signing of a $56 million contract yesterday between JMG and Caterpillar, Inc., based in Peoria, Illinois.

The signing ceremony, which took place at the People's Congress Hall in Beijing, was attended by U.S. Ambassador to the People's Republic of China, Mr. Clark T. Randt, and included the participation of other U.S. and Chinese government and industry representatives. The contract covers the provision of gas engines and other equipment and services for a 120 megawatt (MW) coal mine/coal bed methane power plant that will be owned and operated by JMG and its partners.

In 2004, USTDA provided a $502,850 grant to JMG for preliminary project design, technical specifications and procurement assistance related to the implementation of the innovative power plant project. The USTDA funding supported a contract between JMG and SCS Engineers, Inc. of Long Beach, California. SCS assisted JMG in defining equipment specifications and facilitated the bid evaluation of equipment suppliers.

The $120 million power plant project, which has received funding support from the Asian Development Bank, will be the largest coal mine methane power facility in the world. It will help spur greater Chinese efforts to produce clean coal-based power in Shanxi Province, one of its principal coal-producing provinces and among its more polluted in terms of air quality. Further, the project demonstrates the growing cooperation between U.S. and Chinese energy sector interests in using clean energy sources targeted under the Asia Pacific Partnership for Clean Development and Climate, a priority energy and environmental initiative of the Bush administration.

Since 2001, USTDA has funded over 80 activities supporting important development objectives in China. The agency's China program targets development projects that represent opportunities for U.S. commercial involvement in the areas of transportation, energy, the environment, and other priorities.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.