Nowadays the energy demand has become tripled resulting in advancingof the development activities in the petroleum industry to enhance hydrocarbon recoveries. It is reviewed from the literature that the current worldwide facts of research and technical observations have proved that the coal containing methane gas is not much efficient in terms of power, cost and environment friendly energy source. The objective of this research is to determine the technical and economic feasibility of carbon dioxide (CO2) and nitrogen gas (N2). Moreover, sequestration in coal seams and their environmental consequences for coal based methane recovery project. This research study is also covers the effective and efficient methodologyforextraction of methane gas from coal, which is coupled with the injection of CO2 and N2 into the coal seam complex structure. Moreover, this methodology is applied individually and simultaneously, along with the after effects of injection of CO2 and N2 on Coal bed methane (CBM) recovery. The results of this research study suggestsa method for generation of electric power in which CBM gas is used as an input source whilst the combustion gas, CO2 emissions are sequestrated into coal seams for environmental protection, extending the CBM recovery and reducing CO2 availability cost.