China to Invest in ”Combustible Ice”

Over the next decade, China plans to invest 800 million RMB (US $100 million) in the development of methane gas hydrate—so-called “combustible ice”—to meet its rising energy demand and alleviate heavy dependence on fossil fuels, according to a report by the National Development and Reform Commission, the country’s top economic planner. Scientists, however, worry that the move may cause environmental damage due to the unstable nature and high methane content of the energy source.

Though China’s combustible ice reserves are large, experts believe that production of the resource will only be commercially viable in the wake of further technical breakthroughs. Chen Guangjin, a professor at the China University of Petroleum, told Market News that the current cost of the ice is as high as $200 per cubic meter. With the energy released by each cubic meter of combustible ice equal to roughly 180 cubic meters of natural gas, the cost would be equivalent to more than $1 per cubic meter of natural gas. This far exceeds China’s current cost of natural gas production of $0.125 per cubic meter.
Significant environmental concerns also loom. Combustible ice’s content of methane, a powerful greenhouse gas, is as high as 80–99.9 percent. Although it leaves little residue after burning, the ice is difficult to extract and transport due to its unstable nature and location in seabeds. Inappropriate extraction methods could release the methane contained in the hydrates into the atmosphere, accelerating global warming. Scientists also warn that undersea exploration could induce geological disasters such as tsunamis and coastal landslides, wreaking havoc on neighboring areas.

Worldwatch Institute