BIOMASSRURALENERGY 2020Peoples Republic of ChinaCleaner Energy Better Environment Higher Rural IncomeRURAL BIOMASS ENERGY 2020Cleaner Energy Better Environment Higher Rural IncomePeoples Republic of ChinaContentsAbbreviations ivWeights and Measurements viForeword viiAcknowledgments ixExecutive Summary xiIntroduction 1Section 1: Supply, Demand, and the Technologies 4 Chapter 1: Energy, Environment, and Rural Development: Why Rural Biomass Energy Matters 5 Chapter 2: Biomass Resources: Current Versus Potential 13 Chapter 3: Technologies: Whats Working, Whats Not, and Why 25Section 2: Targets and Their Barriers 46 Chapter 4: Goals and the Technology Road Map 47 Chapter 5: Breaking Down the Sustainability Barriers 55Section 3: The Way Forward for Developing the Industry 65 Chapter 6: A Policy, Institutional, and Financing Strategy 66 Chapter 7: A Framework for Partnership 76AbbreviationsADB Asian Development BankASEAN Association of Southeast Asian NationsCDM Clean Development MechanismCH4 methaneCHP combined heat and powerCIAD Center for Integrated Agricultural DevelopmentCIDA Canadian International Development AgencyCO carbon monoxideCO2 carbon dioxideCSPCB Crop Straw Pricing Consultation BoardE10 10% ethanol and 90% gasolineE4ALL Energy for All PartnershipEIRR economic internal rate of returnEU European UnionFECC Foreign Economic Cooperation CenterFIRR financial internal rate of returnGDP gross domestic productGEF Global Environment FacilityGHG greenhouse gasGTZ German Agency for Technical CooperationHC hydrocarbonsHH householdIFI international financial institutionKfW Kreditanstalt fr WiederaufbauLPG liquefied petroleum gasMEP Ministry of Environmental ProtectionMOA Ministry of AgricultureMOF Ministry of FinanceMOST Ministry of Science and TechnologyNDRC National Development and Reform CommissionN2O nitrous oxideNH3 ammoniaNO2 nitrogen dioxideNOx nitrogen oxideO firewood consumption decreased by 61% and coal by 30%; womens time on household chores was reduced by 40%; and household sanitation and health conditions improved substantially. Biomass Resources, Technology Options, and BarriersBiomass resources. Current and 2020 projections of biomass availability underscore the potential for achieving the countrys 2020 goals of developing sustainable rural biomass energybut only if these wastes can be harnessed. As a large agricultural country, the PRC has a variety of biomass resources in substantial quantities across wide areas. The forms of biomass discussed in this publication come from two kinds of wasteslivestock manure and crop stalksand another type of biomass that is actually produced for creating energy is energy crops for liquid biofuels. As an example of the xiv PRC Rural Biomass Energy 2020loss and opportunity currently found in the countrysides biomass resources, the amount of livestock manure alone in 2005 could have met 28% of rural household energy needsif it had been converted into biogas. Unfortunately, only 12% of animal waste from household farms was put to energy use and worse, only 0.5% of animal waste from industrial livestock farms was used for energy.3 The scenario for crop residues is similar. About 0.4% of the total amount of straw biomass was used in renewable energy systems. Technology options. Encouragingly, the PRC government has already planted the seeds to grow a rural biomass energy industry. Knowledge that biomass can be converted into a clean, convenient fuel is also growing at national and local levels. Proving that biomass energy is catching on, household biogas production increased 340% from 2000 to 2008, while animal waste increased by only 112%. While there is still room for improving household biogas digesters, their further deployment does not face the same challenge as do the larger, more centralized systems. The report evaluated 15 technologies that can convert biomass resources to heat, electricity, solid fuel, liquid fuel (ethanol, biodiesel, etc.), and gaseous fuel (biogas, biomass fuel gas, hydrogen). Through economic, environmental, and social assessment, six technologies that ranked the highest in this assessment are discussed in the report: (i) rural household biogas systems, (ii) medium and large biogas plants, (iii) straw briquette/pellet fuel, (iv) electricity from straw, (v) crop straw gasification, and (vi) bioethanol and biodiesel. These more sophisticated technologies need to be developed through research and piloting if they are going to contribute significantly to meeting rural and national energy demands. This publication, using a scorecard system, summarizes the results of a comprehensive study of the above six technologies. The technology barriers can be overcome, though, as Chapter 4 explains, through adequate research and piloting. Barriers. Even though the country is endowed with rich biomass resources, rural biomass energy is still