Caterpillar generator sets selected to support additional coal methane projects in Shanxi, China BEIJING, Aug. 12 /PRNewswire-FirstCall/ -- Representatives of Caterpillar Inc. (NYSE:CAT) were pleased to accompany James Connaughton, senior environmental and natural resources advisor to President George W. Bush, this weekend as he visited the Sihe Coal Mine in Jincheng city, Shanxi Province, China. Sihe is the world's largest coal methane power plant and will use 60 Caterpillar methane-gas-powered generator sets to create 120 megawatts of power when fully operational. Following the success of this project, Caterpillar has been selected to provide an additional 31 methane-gas-powered generator sets to produce 54 megawatts of power at the Cheng Zhuang and Mei Gan Shi coal mines in the same city in Shanxi Province. "The United States and other nations including China are working together to set a long-term global goal for reducing greenhouse gases," said James Connaughton, who was appointed by President Bush in 2001 to serve as the Chairman of the Council on Environmental Quality. "Economic growth, energy security and climate change must be addressed in an integrated way. The Jincheng coal methane plants are excellent examples of how to increase energy use in an environmentally responsible way," Connaughton added. "We hope to advance more projects like these through the Asia-Pacific Partnership (APP) on Clean Development and Climate, which addresses growing energy demand by advancing clean energy technology development and deployment." The Shanxi Jincheng Anthracite Coal Mining Group Co., Ltd. is the project developer for all three coal methane power plants. Caterpillar will work closely with its dealer WesTrac China Limited on product commissioning and ongoing support for these projects. Methane gas found in coal seams can be highly volatile and it is a major cause of underground explosions. Historically it has been vented into the atmosphere. By capturing the previously vented methane gas and converting it into electricity, the Caterpillar generator sets will significantly reduce greenhouse gas emissions, improve mine safety and increase the capacity of the local power grid. "This is a major step forward in China's road to sustainable development and demonstrates positive bilateral trade relations between the United States and China," said Stu Levenick, Caterpillar group president with responsibility for Asia. The 11th Five-Year Plan guiding China's development between 2006 and 2010 emphasizes that building a recyclable economy is an important way for China to build a resource-efficient and environment-friendly society, thus realizing sustainable development. China has set a goal of reducing the emissions of major pollutants by 10 percent during this five-year period. As part of the second Strategic Economic Dialogue, the United States and China have agreed to develop up to 15 large-scale coalmine methane capture and utilization projects in China in the next five years. "Caterpillar is a long-term investor in China, and we are excited to see that China has positioned methane gas capture and utilization as a priority." said Rich Lavin, Chairman of Caterpillar (China) Investment Co., Ltd. and a Caterpillar vice president with responsibility for Asia Pacific manufacturing operations. "Our trade relations will continue to strengthen and produce on-going returns." The 3500 series generators used in these projects are produced at Caterpillar's Large Engine Center in Lafayette, Indiana. "Caterpillar generator sets have been producing electricity around the world for nearly 70 years," said Bill Rohner, Caterpillar vice president with responsibility for the Electric Power Division. "We are pleased to be involved with these new opportunities in China." Caterpillar sold its first products in China in 1975 and opened an office in Beijing in 1978. In the 1980s, Caterpillar launched technology transfer agreements with Chinese manufacturers who began building Caterpillar licensed products. Caterpillar's expansion in China accelerated in the early 1990s with the establishment of a more significant local production strategy. In 2006, Caterpillar located its Asia Pacific Operations headquarters in Beijing.
