China Finalizes Target on Utilization of Biomass Energy for 2010

---

Researched by Industrial Info Resources (Sugar Land, Texas)--China has finalized the target on utilization of biomass energy for 2010 and the annual utilization of biomass energy will account for 1% of the total primary energy consumption in 2010, according to the Forum on Biomass Energy Development held in Changchun, the capital city of northeast China's Jilin Province recently.

As reported, the Ministry of Finance will apply four financial policies to support the healthy development of bio-energy and bio-chemical industry in China, including raw material subsidies, demonstration allowances and tax incentives. While implementing the financial support policies for the development of biomass energy, the Ministry of Finance will adhere to three basic principles. First, it will not to acquire land used for grain products. Second, biomass development shall be favorable for improvement of efficiency and technical advance, and thirdly, the industry development shall be carried out in an active and reliable way to avoid over-investment.

According to related planning of the Chinese government, the installed capacity of biomass power generation will reach 5.5-gigawatts (GW). Liquefied bio-fuel will reach 2-million metric tons, annual firedamp utilization will reach 19-billion cubic meters, and biological solid fuel will reach 1-million metric tons in 2010. Of which, the installed capacity of biomass power generation and liquefied bio-fuel will reach 30-GW and 10-million metric tons in 2020 respectively.

As a large country both in energy consumption and import, China's biomass energy industry has not been grown until recent years due to a major dispute over the development of the industry, namely whether it will cause fluctuation in the price of grain and further impact the nation's food supply security. However, the publication of the Policies on Promoting Development of Biological Industry by the State Council of China in middle June finally pointed out the right direction for the development of biomass energy in China.

Biomass energy refers to those energies produced or converted from natural plants as well as organic wastes, which are mainly comprised of stalks, forest and fruit, bird and livestock's dejections, organic life garbage and wastes at present.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.