CITIC Teams to Set Up China CBM Fund

Henan Provincial Coal Seam Gas Development and Utilization, CITIC Group, and other investors set up a new-energy industry fund on Tuesday.

It is believed to be the first new energy industry fund for CBM development to be established in China.

The coal-bed methane (CBM) company in central China's Henan province holds 51 percent of the equity of the fund.

The fund plans to raise no less than 4.8 billion yuan of capital. It plans to raise about 1 billion yuan in its first phase of fundraising, and the second phase aims to raise at least 3.8 billion yuan.

The fund will invest in CBM development and utilization projects, the integration of small and medium-sized coalmines, the management of gas regions, the dual exploitation of coal and gas, and the development of high quality coal in Henan province.

It's China's first industrial fund for coal and CBM projects.

Henan is an important coal and CBM province in China. Its coal output has ranked in the top three in China for 28 years.

Source: Xinhua News Agency