Coal Bed Methane (CBM) Market Report 2025

The coal bed methane (CBM) market size has grown strongly in recent years. It will grow from $19.86 billion in 2024 to $21.11 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to energy security concerns, increasing natural gas demand, coal mining operations, government policies and incentives, environmental benefits.

The coal bed methane (CBM) market size is expected to see strong growth in the next few years. It will grow to $26.13 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to global transition to cleaner energy, technological advancements in extraction, growing focus on unconventional gas resources, energy independence initiatives, expansion of CBM infrastructure. Major trends in the forecast period include government initiatives and regulatory support, innovations in exploration and reservoir management, emergence of CBMs, investments in infrastructure for CBM distribution.

A substantial increase in global electricity consumption is significantly boosting the coal bed methane (CBM) market. Electricity, a core energy form, can occur naturally (like lightning) or be produced (such as through generators) and is expressed through electron movement and interaction. Coal bed methane (CBM) serves as a clean energy source widely utilized in electricity generation. Rising demand for electricity is anticipated to drive up the need for cleaner energy sources to generate more electricity while minimizing carbon emissions. For example, according to the U.S. Energy Information Administration, in 2022, total electricity end-use consumption in the U.S. grew by approximately 3.2% over 2021 levels. Thus, a substantial increase in global electricity consumption will propel the coal bed methane (CBM) market.

Increasing environmental concerns are significantly impacting the coal bed methane (CBM) market. These concerns cover a range of issues tied to the degradation and depletion of natural resources, pollution, climate change, and other factors threatening ecosystems and human health. The expansion of the coal bed methane (CBM) market plays a key role in addressing these issues by providing a cleaner alternative to conventional fossil fuels, thus reducing greenhouse gas emissions and encouraging sustainable energy practices. Rising electricity demand is expected to elevate the need for cleaner energy sources to generate more power with reduced carbon emissions. For instance, the United Nations Environment Programme’s Emissions Gap Report 2023 indicated that global greenhouse gas emissions increased by 1.2 percent from 2021 to 2022, reaching an all-time high of 57.4 gigatons of CO2 equivalent (GtCO2e). Consequently, increasing environmental concerns are driving the coal bed methane (CBM) market.

Government initiatives promoting clean energy sources of natural gas are anticipated to drive the coal bed methane (CBM) market forward. Various countries’ governments are actively working towards clean energy solutions to facilitate the global distribution of natural gas. These initiatives are expected to boost demand for coal bed methane, a cleaner natural gas source. For example, in October 2022, India's Directorate General of Hydrocarbons (DGH), an upstream regulatory body, announced the offering of 16 CBM blocks and 26 oil and gas blocks in the country's ninth and latest exploration licensing round. These 26 oil and gas blocks include 15 in ultra-deep water, 8 in shallow water, and 3 on land, spanning a total area of 223,000 square kilometers. Additionally, in June 2024, the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA) launched applications for $850 million in federal funding. This funding aims to support projects that monitor, measure, quantify, and reduce methane emissions in the oil and gas sectors. The initiative will aid small oil and gas operators in adopting advanced methane emissions reduction technologies and foster partnerships that improve emissions monitoring, ensuring accurate and transparent data for affected communities. Thus, government initiatives for clean energy sources of natural gas are expected to propel the CBM market.

Leading companies in the CBM market are prioritizing product innovations, such as trials for the continuous injection of Coal Bed Methane (CBM) into blast furnaces. Continuous CBM injection involves the uninterrupted introduction of CBM gas into processes like steel production blast furnaces, aimed at boosting efficiency and reducing environmental impact. For instance, in January 2022, Tata Steel Limited, an India-based multinational steel producer, conducted a pioneering trial for the continuous injection of CBM in blast furnaces to cut emissions. This trial is designed to reduce the coke rate by 10 kg per ton and subsequently decrease CO2 emissions by 33 kg per ton of crude steel. This groundbreaking initiative not only provides insights into reducing coke rates but also highlights the potential of CBM as an injectant in the steel industry, marking a significant advancement in the CBM market and promoting more sustainable steel production.

In February 2022, ConocoPhillips, a prominent US-based company specializing in hydrocarbon exploration and production, secured a majority stake in Australia Pacific LNG for a total of $1.645 billion. This acquisition represents a strategic move by ConocoPhillips aimed at gaining increased control over its investments in Australia. Australia Pacific LNG, an Australia-based company, specializes in domestic gas operations and is recognized as a producer of coal bed methane.

Major companies operating in the coal bed methane (CBM) market include PetroChina Company Limited, Royal Dutch Shell plc, British Petroleum Plc, Chevron Corporation, Tamboran Resources Limited, Reliance Industries Limited, Petroliam Nasional Berhad, ConocoPhillips Company, Comet Ridge Limited, Baker Hughes Company, Halliburton Company, Origin Energy Limited, AGL Energy Limited, Great Plains Energy Inc, Santos Limited, Western Gas Corporation, Far East Energy Corporation, Queensland Gas Company Ltd., Arrow Energy Holdings Pty Ltd., Great Eastern Energy Corporation Ltd., Central Petroleum Limited, Metgasco Ltd., G3 Exploration Limited (G3E), China United Coalbed Methane Corporation Ltd.

Asia-Pacific was the largest region in the coal bed methane (CBM) market share in 2024. The regions covered in the coal bed methane (cbm) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the coal bed methane (cbm) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Coal bed methane (CBM) is a unique type of natural gas found within coal seams or deposits. It serves as a key clean energy source of natural gas. CBM forms during the coalification process, in which plant material is transformed into coal.

Coal bed methane (CBM) primarily exists in two forms such as CBM wells and within coal mines. CBM wells encompass any excavated openings in the ground aimed at locating or extracting coal bed methane. The extraction process involves utilizing natural gas derived from coal through methods such as horizontal drilling, hydraulic fracturing, and CO2 sequestration technology. This resource finds application across industrial, power generation, transportation, commercial, and residential sectors.

The coal bed methane (CBM) market research report is one of a series of new reports that provides coal bed methane (CBM) market statistics, including coal bed methane (CBM) industry global market size, regional shares, competitors with a coal bed methane (CBM) market share, detailed coal bed methane (CBM) market segments, market trends and opportunities, and any further data you may need to thrive in the coal bed methane (CBM) industry. This coal bed methane (CBM) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The coal bed methane (CBM) market consists of sales of secondary biogenic methane, thermogenic methane, residual thermogenic CO2 and heavy hydrocarbons. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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