Sino-German Project for Optimization of Biomass Utilization / Biogas

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Overview

The use of biomass to generate energy is seen as an important pillar in China’s future power supply with renewable energies which should, according to the Medium and Long Term Development Plan for Renewable Energy in China (NDRC Beijing, September 2007), amount to 15% of primary energy in 2020. Bio-energy, including biogas from abundant biomass waste sources in China, can help to diversify the energy mix and provides stable base load power. It also promotes rural development, contributes to a reduction of the local environmental pollution as well as of greenhouse gas emissions in the context of a low carbon economy. In terms of grid connected energy generation, the Chinese government has set the ambitious goal to provide an installed electricity capacity of 3 GW from large-scale biogas plants by 2020.

During the last decade the government has subsidized the construction of thousands of middle- and large-scale biogas plants, but their operational performance is lacking far behind international standards and the contribution to renewable energy production is therefore marginal. As a result, the attractiveness to invest in biogas plant projects is at risk at current and the efficient biomass use with its overarching goals cannot be leveraged for China.[1]


Objectives

The Sino-German Project on Optimization of Biomass Utilization is a 5-year project launched in January 2009, aiming at strengthening both private- and state-sector interest in investing in the generation and use of biomass energy, and the improvement of the technical standards and operational performance of medium- and large-scale biogas plants.[1]


Partners

The project is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in cooperation with the Foreign Economic Cooperation Center of Ministry of Agriculture (FECC/MOA), and in the context of the "Integrated Renewable Biomass Energy Development" ADB Project


Context

The use of biomass to generate energy is seen as an important pillar in China’s future power supply with renewable energies which should, according to the Medium and Long Term Development Plan for Renewable Energy in China (NDRC Beijing, September 2007), amount to 15% of primary energy in 2020. Bio-energy, including biogas from abundant biomass waste sources in China, can help to diversify the energy mix and provides stable base load power. It also promotes rural development, contributes to a reduction of the local environmental pollution as well as of greenhouse gas emissions in the context of a low carbon economy. In terms of grid connected energy generation, the Chinese government has set the ambitious goal to provide an installed electricity capacity of 3 GW from large-scale biogas plants by 2020.
During the last decade the government has subsidized the construction of thousands of middle- and large-scale biogas plants, but their operational performance is lacking far behind international standards and the contribution to renewable energy production is therefore marginal. As a result, the at-tractiveness to invest in biogas plant projects is at risk at current and the efficient biomass use with its overarching goals cannot be leveraged for China.


Approach

The project is part of the Asian Development Bank (ADB) „Integrated Renewable Biomass Energy Development Pro-ject“, which is implemented by the Ministry of Agriculture (MOA) and further supported by the Global Environmental Facility (GEF) and the Multi Donor Clean Energy Fund (CEF). In the framework of this project, between 2009 and 2015, 106 middle- and large-scale biogas plants in the prov-inces Henan, Jiangxi, Heilongjiang, and Shandong will be constructed.
The Sino-German Biomass Project supports this investment by providing technical assistance and advisory services to the four ADB provinces, as well as to demonstration projects identified in other provinces, such as in Sichuan and Beijing. The project assists in the planning, construction and operation of about 6 selected demonstration projects. The project selection is based on their individual scope of inno-vation and their motivation to set up successful business cases based on an ‘international best practice’ technological approach. Further supportive measures include the organi-zation of trainings for relevant stakeholders at provincial level, study tours and partner trainings to resp. in Germany
Five training centre laboratories will be supported at the demonstration project sites. The policy supporting the biogas sector must provide long term security based on the op-erational performance of biogas plants, rather than the short term investment support. All these measures follow the overall approach to cooperate with the German and Chinese biogas industry, engineering enterprises, biogas plants operators and research institutes.


Results and Impact

The project aims to achieve the following overall results:


1. Component A: Support of ‘best practice’ demonstration projects

  • Biogas sector stakeholders are aware of financial and ecological opportunities of investment in Medium- and Large-Scale Biogas Plants (MLBGPs)
  • To achieve this goal, the projects offers training interventions to designers, governmental decision makers and operators and providing consulting services to the demonstration projects and the ADB-financed biogas plants.


2. Component B: Capacity building and mechanisms to promote broader dissemination and replication

  • The knowledge how to implement and better operate ‘best practice’ MLBGPs will be disseminated to a wider group of stakeholders in China and used in ADB financed and other MLBGPs
  • The project organizes trainings for biogas designers, operators as well as technicians in order to disseminate the capacity on how to plan, finance, operate and analyze ‘best practice’ MLBGP projects and to develop an active sector dialogue. Additionally, business plan recommendations and initial support is provided for the establishment of training centre laboratories.


3. Component C: Sector policy framework

  • Sector policy is adjusted to enhance the motivation to invest in MLBGPs under the aspect of renewable energy production
  • Networking events, as well as policy round tables and workshops are organized to raise awareness between policy makers on the importance of

(1) high technology standards and

(2) an operation-focused support schemes. A China Biogas Handbook will be issued at the end of the project.


4. Component D: Technical support to the PMO for ADB Project implementation

  • The conceptual approach, technical design and -feasibility of MLBGPs sub-projects funded under the ADB loan are improved
  • The project offers consulting services to all interested ADB sub-projects regarding the planning and operation of MLBGPs.


Scope of Innovations for Demonstration Projects

  • International 'best practice' technology for large-scale biogas plants, fitting to extreme cold climatic conditions in North & West China for electricity generation up to 6 MW
  • Business concepts based on Centralized Biogas plants and Co-digestion of alternative feedstock
  • Biogas purification to Bio-methane
  • Improved process performance based on technology selection, process control and operation
  • Cooperation with International partners, designers, equipment suppliers, research institutions, strategic investors, and CDM developers
  • Support of CDM, new methodologies and CDM compliant design and operation


Further Information


References