China’s efforts to develop technology that can capture carbon dioxide and store it underground are creating investment opportunities for foreign companies as the more common paths into China's energy sector are being closed and reserved for state enterprises.

Hong Kong-listed Enviro Energy International Holdings Ltd. and Canada’s Petromin Resources, Ltd.  signed a deal with China United Coalbed Methane Corp. for a five year project in the coal-rich province of Shanxi in northern China.

Supported in part by funding from the Ministry of Science and Technology, the $ 1.39 million project will involve drilling wells in a coal bed that is about 3,300 feet below the surface and unsuitable for commercial mining. Canada’s Alberta Research Council will provide technical expertise.