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It is used in industries for the production of cement, methanol, etc. It is used in steel plants as well as rolling mills. It can be used as a feedstock for fertilisers. CBM is used in the generation of power and is an environment-friendly source.
It is used primarily as fuel to make heat and light. It is also used to manufacture organic chemicals. Methane can be formed by the decay of natural materials and is common in landfills, marshes, septic systems and sewers.
Production operations in coalbed methane (CBM) wells are not significantly different from other gas wells except for one important distinction. Conventional wells typically begin production with high gas/water ratios (GWR) that decrease with time, whereas CBM wells start with low GWRs that increase with time.
Surface disposal of large volumes of potable water can affect streams and other habitats, and subsurface reinjection makes production more costly. In addition, methane is a greenhouse gas; in the atmosphere it acts to trap heat and thus contributes to global warming.
The development and utilization of CBM is of great social and economic benefit. It is a clean-burning fuel (compressed natural gas?CNG) for domestic and industrial uses. The extraction of CNG reduces explosion hazards in underground coal mines.