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Bioenergy in China

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Very large disparity in living conditions between urban and rural ... Increase in imports due to population growth, decline in arable land and higher demands ... – PowerPoint PPT presentation

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Title: Bioenergy in China


1
Bioenergy in Chinas Agriculture Sector
Challenges and Opportunities
  • Lin Gan
  • Sustainable Bioenergy Conference
  • Bonn, October 12-13, 2006

2
China in Two Faces
  • Very large disparity in living conditions between
    urban and rural areas
  • The gap is widening
  • Strong measures needed to reduce this gap

3
Agriculture Development
  • Economic 9.5/y between 1978-present
  • Agriculture stagnation in production and prices
  • Increase in imports due to population growth,
    decline in arable land and higher demands
  • Growing disparity between the rich and the poor
  • Farmers migrate to urban areas as economic
    migrants, due to limited jobs in agriculture
    areas and low income from agriculture production
  • Energy use divided switch to fossil fuels in
    coast regions and rely on traditional biomass use
    in west regions
  • Key problems land loss due to urbanization,
    surplus labor force from agricultural sector

4
The Development and Environment Challenge
  • GDP grows by 10.4/y, some regions excess 14
  • Environmental protection objectives for 10th
    Five-Year Plan were not realized
  • Energy consumption increases faster than GDP
  • Western regions are far more energy inefficient
    than coast regions (2-3 times)
  • Climate change has seen its impact, e.g.
    droughts, floods, hurricanes, which led to
    hundred-billion Yuan of losses and damages

5
Drought in Sichuan Province
6
The Western Regions
  • Lag behind in economic development than the coast
    regions
  • Vulnerable in eco-systems
  • Poverty still a social problem (40-80 million)
  • Farmers still rely on traditional use of
    agriculture biomass for cooking and space heating
  • Focus on raw materials industry and energy will
    not make the regions rich
  • Attitude on GDP growth leads to ecological
    consequences
  • Weak in human resources and management capacities

7
Traditional Use of Biomass
8
Biomass for Cooking and Heating
9
Transition from Traditional to Modern Biomass use
  • 200 million tons of agri. residues/y
  • Most of them are burned in fields
  • If 20 million tons (10 of the total) are used
    for biomass CHP, US 750 million income for
    farmers

10
Reduce Coal Use
  • Coal a major source of pollution
  • Lots of waste in burning of coal
  • Health impact of coal production and use is high
  • Infrastructure for burning coal can be used for
    biomass utilization

11
Miao in Guizhou
12
Traditional lifestyle
13
Impact of Indoor Air Pollution
  • Household use of coal for cooking, heating and
    drying of agriculture products
  • Open stove use as local culture and tradition
  • Problems found from early 1980s
  • Preventive measures are undertaken from recent
    years

14
Health Effects of Fluoride Poison
  • Thyroid gland
  • Kidneys
  • Brain and nervous system
  • Immune system
  • 1/30 people, or 45 million, in China are affected

15
Children Are Most Affected
16
Dental Fluorosis
  • Effects to teeth and bones
  • Common in China due to air and water pollution
  • More than 45 million people affected
  • Once affected, it remains for life

17
Arsenic poison in Guizhou
  • Concentrated in Southwestern region
  • Household coal use related
  • Due to local resource, climate, economic
    situation and tradition

18
Household bioenergy Applications
  • Independent off-grind power systems for
    households and villages to provide electricity to
    35 million people by 2010
  • Biogas a major technology in agriculture sector
    for sustainable energy and farming practice
  • Tens of millions of users already, but further
    market expansion is needed

19
Biomass Transition
  • Requires an Integrated Approach for bioenergy
    development
  • From centralized to decentralized power systems
    development
  • Agricultural wastes for biogas, power and heat
    production
  • Direct biomass burning to reduce coal use
  • Develop pellets market demand in rural
    households stoves for cooking and heating
  • Develop heat market for bioenergy use
  • Large potentials on biofuels in transport
  • Biomass CHP relevant for small cities and local
    residential areas

20
Biomass Potential
  • If 20 million tons of agriculture residues were
    uses, it could..
  • Save 10 million tons of coal
  • Reduce CO2 emissions of 25 million tons
  • Generate 15 GWh of electricity
  • Produce 60 million GJ of heat
  • Enough for 25MW x 350 CHP plants

21
Social Benefits
  • Income generation
  • Job creation from biomass production, transport,
    equipment and services (150,000 jobs for 30GW)
  • Improvement in Health and living conditions
  • Reduce migrant pressure to urban areas

22
Biomass Applications
  • 2020 Electricity generation target from biomass
    30GW
  • Biogas CHP plants in feedstock farms
  • Biomass CHP with agriculture residues
  • Biogas with municipal and residential residues
  • Biofuels (ethanol biodiesel)
  • Pellets and bio-briquette production
  • Investment in CHP 30-36 bn

23
Development of Biomass Technologies
  • Efficient biomass stoves
  • Pellets production
  • Biogas technology for households and feedstock
    farms

24
Opportunities for International Cooperation
  • Investment cost for CHP 0.6-0.7 yuan/KWh
  • Joint key equipment production pellets machines,
    boilers and feeding systems for CHP plants
  • CHP power system designs and operation
  • Biofuels production technology for transport
  • Biomass resource production and management
  • Biomass stoves for various applications, e.g.
    households, restaurants
  • Service company management and marketing

25
Technology Management Barriers
  • Modern bioenergy is new to China
  • Lack of combustion and gasification technologies
  • Lack of biofuel production capacity and
    technologies
  • Disparity in resource situation in different
    regions
  • Little experience on resource costs, collection
    and transportation systems, business services in
    market application
  • Lack of RD capacity and management skills

26
Barriers on Market Development
  • Weak in incentive policies
  • Lack of effective financial instruments, e.g.
    public funds, venture capital, tax policy,
    micro-credit
  • Monopoly of utilities access to e-grid
  • Low coal prices
  • Lack of appropriate technologies for rural
    applications, e.g. efficient stoves, small
    gasifies

27
Key Issues for Consideration
  • Priority should be on meeting local demands for
    rural residents
  • Substitutions for fossil fuel use important
  • Social development issues should be linked to
    bioenergy development
  • Local conditions have to be respected
  • Appropriate technologies would be more effective
    in application than modern technologies
  • Capacity building are important
  • Incentive polices are needed at central, regional
    and local levels

28
Thanks for your Attention!
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