Hong Kong-based Baring Private Equity Asia is moving into China's green energy sector in a big way.

According to the China Daily, Barring and its Mainland associate Chengwei Ventures LLC have invested $88 million in China CBM Investment Holdings Ltd (CCBM). CCBM is a Chinese producer of coal bed methane.

CCBM used to go by the name Asian American Gas, Inc. (AAGI). The name was changed after a management buyout. The old AAGI was one of the first foreign companies involved in coal bed methane in China. The company developed some of the most advanced technology available for removing methane from coal beds.

Coal bed methane (CBM) is natural gas extracted from coal deposits. Coal beds are a valuable natural gas. Removing the natural gas from coal beds makes mining the coal safer. According to the China Daily, there are around 260 trillion cubic meters of coal bed methane reserves in the world, double that of natural gas. Coal bed methane reserves in China rank third in the world, after Russia and Canada.