Caterpillar (CAT:NYSE - commentary - research - Cramer's Take) will supply 60 methane-powered generator sets to produce 120 megawatts of power at a coal mine in China.

The Peoria, Ill., tractor company said the methane gas power project is expected to be the biggest of its kind in the world when operational.

Methane gas is found in coal seams and can be hazardous if not properly managed and ventilated from mines, Caterpillar said. The power plant project is expected to improve methane gas ventilation at the mine site, improving safety while providing an environmentally friendly fuel source to generate electricity.

The entire methane-fired power plant is expected to be fully operational in 2007.