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Biomass market
opportunities
China 1. General country information
2. Economic indicators
3. Biomass availability
4. Energy profile
5. Energy & biomass policies
6. Funding opportunities
7. Business Climate
8. Important contacts
[Market Opportunities for Biomass in China] | [April 10, 2014]
Page 2 of 16
Colophon
Date April 10, 2014
Status Final
This study was carried out in the framework of the Netherlands Programmes Sustainable Biomass by
Name organisation Partners for Innovation BV
Contact person Emiel Hanekamp
Although this report has been put together with the greatest possible care, NL Enterprise Agency does not accept
liability for possible errors.
Contact
Netherlands Programmes Sustainable Biomass
Jobert Winkel
NL Enterprise Agency
NL Energy and Climate Change
Croeselaan 15, 3521 BJ Utrecht
P.O. Box 8242, 3503 RE Utrecht
The Netherlands
Email: [email protected]
Phone: +31 - 88 - 602 7969
www.rvo.nl/biomass
Partners for Innovation BV
Emiel Hanekamp, Saskia de Lint and
Floor Osseweijer
Partners for Innovation BV
Cruquiusweg 20
1019 AT Amsterdam
The Netherlands
Email: [email protected]
Phone: +31 (20) 6200511
www.partnersforinnovation.com
This document
This document is part of a series of 16, providing information on biomass markets in:
Europe: Germany, France, United Kingdom, Spain and Finland
EU/Asia: Russia and Latvia
Asia: China, India and Thailand
North- and South-America United States of America, Canada and Brazil
Africa: South-Africa and Ghana
Australia Australia
The selection of countries is done in close cooperation with NL Enterprise Agency. The objectives of the
country documents are: To provide companies a first impression of doing businesses in a country; To provide sources and contacts for more detailed information; To sketch opportunities how companies can be further supported when doing business in a country.
[Market Opportunities for Biomass in China] | [April 10, 2014]
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In the upcoming five years, China will become world’s largest energy consumer. Investment projects that
convey clean energy production, such as biogas, are given priority in entering the market. Dutch
companies are actively participating in Chinese projects focussing on converting municipal waste into
biodiesel and biogas. March 24th 2014, China and the Netherlands singed a MoU, initiating a better
collaboration in the field Sustainable Energy. Potential cooperation / international trade topics are: - Landfill gas extraction: export of equipment and technical and management expertise;
- Anaerobic digestion: co-research fermentation process, transfer dry fermentation technology and
biogas plant equipment export /co-manufacturing;
- Biogas upgrading: export of low cost technologies;
- Gasification: supply of new gasifier manufacturing technology and process;
- Cellulose conversion: export enzymes and reaction process;
- Co-combustion: export low capital cost gasifier and O&M;
- Flue gas/ash/slag cleaning/processing: export knowledge and equipment of improved technologies;
- Torrefaction: export equipment and knowledge of improved processes/technologies;
- Sludge drying: export of mature anaerobic digestion technologies and management experience.
1. GENERAL COUNTRY INFORMATION
Country profiles at RVO: http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/china
Descriptions of business sectors, key market players and business trends via Business
Monitor International: http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/marktvergelijkingen/bmi
The Economist Intelligence Unit provides you with articles and short reports about Country
Analysis, Risk Analysis and Industry Analysis:http://www.rvo.nl/onderwerpen/internationaal-
ondernemen/landenoverzicht/marktvergelijkingen/eiu
Im- and export figures can be found at the International Trade Centre Databank: http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/marktvergelijkingen/trademap
Information U.S. Energy Information Administration:http://www.eia.gov/countries/country-data.cfm?fips=CH
2. ECONOMIC INDICATORS
China 2009 2010 2011 2012
GDP (current billion US$) 4,991.26 5,930.53 7,321.94 8,227.10
GDP growth (annual %) 9.2 10.4 9.3 7.8 GDP per capita (current US$) 3,749.3 4,433.4 5,447.3 6,091.0 Population (Total, million) 1,331.26 1,337.71 1,344.13 1,350.70 Source: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD, http://data.worldbank.org/indicator/NY.GDP.PCAP.CD
Source: IRENA Renewable Energy Country Profiles 2013: http://www.irena.org/REmaps/countryprofiles/asia/China.pdf#zoom=75
[Market Opportunities for Biomass in China] | [April 10, 2014]
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AON Risk Rating 2013
AON's risk rating combines market, political and security risks, allowing you to make informed
decisions regarding your operations and investments. Used risk Ratings are: VH=Very High,
H=High, MH=Medium High, M=Medium, ML=Medium Low, L=Low and NR=Not Rated.
Risk type Rating Risk type Rating
Exchange transfer M
Political violence H
Sovereign non-payment M
Risk of doing business H
Political interference H
Banking sector
vulnerability
M
Supply chain disruption M
Inability of government to
provide stimulus ML
Legal & regulatory risks MH
Overall risk rating MH Source: AON political Risk Map, Q3 2013, http://www.riskmap.aon.co.uk/Political_Risk_Map.aspx
3. BIOMASS AVAILABILITY
Land Use Parameters
Country Land area
(km2)
Agricultural
area (km2)
Arable land
(km2)
Permanent
crops (km2)
Forestry area
(km2)
China 9.327.489,90 5.195.411,87 1.119.298,79 149.239,84 2.098.685,23
per 1000 capita
6,91 3,85 0,83 0,11 1,55
Source 2012: http://data.worldbank.org/indicator/AG.SRF.TOTL.K2
Agricultural and Forest Production
Country Forest production (m3) 2012 Agricultural production (1000 kg) 2012
China 488.245.525 933.996.721
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Biomass Resources
Source: Distribution of the major feedstock supply baseshttp://add-energy.ro/en/cei-mai-relevanti-factori-referitori-la-cresterea-
asteptata-a-bioenergiei-in-china-in-anii-urmatori/
Source: https://www.air-worldwide.com/Publications/AIR-Currents/Agricultural-Risk-and-the-Crop-Insurance-Market-in-China/ China Agricultural Regions and Planting/Harvesting Dates by Insured Crops of Importance, FAO
[Market Opportunities for Biomass in China] | [April 10, 2014]
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Source: Bioraffinage in China, Jingmin Kan
Available Biomass Residues
Agricultural residues: In 2007 a total of 752,000,000 ton was produced, less than 30% being
used for mainly cattle feed. It mainly contains the plant stem and straw from rice, wheat and
maize.
Forestry residues: In 2007 a total of 2.45 billion ton was produced, especially in the south-
west and north-east.
Manure from medium large cattle farms: In 2007 a total of 2.48 ton was produced, cows
producing 57.6% and pigs 31% of this amount.
Industrial and domestic waste water and solid waste: In 2007 a total of 24 billion ton of
industrial and 31 billion ton of domestic waste water was produced. In total 1,908 million ton
of solid waste is produced, 1,756 ton being industrial. Source: China National Statistics Bureau (NBS)
4. ENERGY PROFILE
National Energy Profile
• Total Primary Energy Supply: 94,799.8 PJ - Of which renewables: 11,282.7 PJ (11.9%)
• Energy self-sufficiency: 90.9%
• Fuel imports: 203.8 billion USD (11.1% of total imports)
• Electricity generation: 3,780.8 TWh - Of which renewables: 645.4 TWh (17.1%)
• Electricity use per capita: 2,650 kWh
• Electrical capacity: 890.3 GW - Of which renewables: 216.6 GW (24.3%)
• Electricity access rate: 99.4%
• Share of population using solid fuels (2010): 46%
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Biomass Related Projects
BNEF-Database
• Biodiesel: 119 million litres per year by mid 2013 (1 project); 1,500 million litres
announced (11 projects)
• Bioethanol: More than 2,500 million litres per year announced (13 projects)
• Biomass: 176 MW by end 2015 (6 projects); more than 6,500 MW announced Source: IRENA Renewable Energy Country Profiles 2013: http://www.irena.org/REmaps/countryprofiles/asia/China.pdf#zoom=75
China-European Projects
China Renewable Energy Scale-up programme http://www.cresp.org.cn/english/
Biogas project waste to energy http://www.ruralpovertyportal.org/country/voice/tags/china/biogas
http://www.ecotippingpoints.org/our-stories/indepth/china-biogas.html
Biomass to energy http://www.lenovo.com/social_responsibility/us/en/Biomass_Waste_to_Energy_Project_Description.pdf
Energy Sources and Forecast
ReneWable electricity generation by source in billion kWh
Source: International Energy Outlook 2011, IEA
[Market Opportunities for Biomass in China] | [April 10, 2014]
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Source: National Energy Administration, "生物质能发展“十二五”规划," [The 12th Five-Year Plan on Bio-Energy Development], July 24,
2012 National Development and Reform Commission, “可再生能源“十一五”规划,” [The 11th Five-Year Plan on Renewable Energy] July,
2008, Azure analysis.
5. ENERGY & BIOMASS POLICIES
Targets
• 15% of primary energy from renewables by 2020
• Start construction of additional 120 GW of hydro by 2015
• 100 GW of wind capacity by 2015
• 15 GW of solar capacity by 2015
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[Market Opportunities for Biomass in China] | [April 10, 2014]
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Source: Bio-energy cooperation between China and the Netherlands – Azure
The general federal policies and laws can be found at the website of Netherlands Enterprise
Agency, http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/china/wetgeving.This part contains
more detailed information on renewable energy policies.
Due to its enormous economic development, China has become the second largest off-taker of
crude oil in the world. Energy shortages in combination with a growing environmental impact
(also impacting economic growth) has increased awareness and the necessity in China to
stimulate the biobased economy. The Chinese central government has established policies
boosting biomass energy development. These favourable policies may foster an era of
accelerated growth for alternatives to fossil fuels. It is stipulated in the Outline of the 12th
Five-Year Plan (2011-2015) for National Economic and Social Development that by 2015 non-
fossil energy will rise to 11.4 percent in the national total primary energy consumption, energy
consumption per unit of GDP will drop by 16 percent from 2010, and CO2 emission per unit of
GDP will decrease by 17 percent from 2010.
The Chinese government has made the commitment that by 2020 non-fossil energy will
account for 15 percent of its total primary energy consumption, and CO2 emission per unit of
GDP will be 40-45 percent lower than in 2005. As a responsible nation, China will make every
effort to fulfil its commitment. The state has also established a feed-in tariff (FIT) system for
wind and photovoltaic power generation, and a renewable energy development fund.
The Chinese biobased market will keep growing in coming years, especially for biotechnology.
This will create many opportunities for Dutch companies like DSM and Applikon.
Source: Whitepaper on China’s Energy policy 2012 http://english.gov.cn/official/2012-10/24/content_2250497_3.htm
6. FUNDING OPPORTUNITIES
Dutch-Chinese opportunities Chapter 5: http://www.dienst-regelingen.nl/sites/default/files/Bio-
energy%20cooperation%20between%20China%20and%20the%20Netherlands%202013.pdf
Current development of biorefinery in China; Tan et al. 2010
7. BUSINESS CLIMATE
Overall rating
World Bank Ease of Doing Business index 2013 (Ranking out of 189 countries). In comparison,
the Netherlands is ranked 28 (2014) and 30 (2013). On this website information about
necessary permits, administration time, specific laws et cetera is present.
[Market Opportunities for Biomass in China] | [April 10, 2014]
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Topic DOING BUSINESS 2014 DOING BUSINESS 2013
Total rating 96 99
Starting a Business 158 153
Dealing with Construction Permits 185 185
Getting Electricity 119 116
Registering Property 48 47
Getting Credit 73 82
Protecting Investors 98 95
Paying Taxes 120 122
Trading Across Borders 74 74
Enforcing Contracts 19 19
Resolving Insolvency 78 80 Source: http://www.doingbusiness.org/data/exploreeconomies/china Logistics and Infrastructure
Based on a worldwide survey of operators on the ground, such as global freight forwarders and
express carriers, the Logistics Performance Index (LPI) measures the logistics "friendliness" of
155 countries. In 2012, the ranking of China is place 26, scored 80.5% of highest performer Source: World Bank
web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:23188613~pagePK:210058~piPK:210062~theSitePK:239071,0
0.html
Culture and Education
The UNDP Human Development Index (HDI) is a composite statistic of life expectancy,
education, and income indices, used to rank countries into four tiers of human development:
very high, high, medium and low. According to HDI, China belongs to the group of “High
human Development” and is ranked 101 out of 186.
HDI rank (2012)
Life Expectancy at Birth (2012)
Mean Years of Schooling (2010)
Expected Years of Schooling (2011)
101 73.7 7.5 11.7
Source: Human Development Index https://data.undp.org/dataset/Table-1-Human-Development-Index-and-its-components/wxub-qc5k
8. IMPORTANT CONTACTS
Dutch Embassy + Consulates
• Embassy of the Kingdom of the Netherlands in Peking
• Netherlands Consulate General in Hongkong en Macao
• Netherlands Consulate General in Chongqing
• Netherlands Consulate Generalin Guangzhou
• Netherlands Consulate Generalin Shanghai Source: http://www.rijksoverheid.nl/onderwerpen/ambassades-consulaten-en-overige-vertegenwoordigingen
Netherlands Business Support Office (NBSO)inDalian, Jinan, Nanjing, Qingdao, WuhanandChengdu.
Chamber of Commerce
Dutch Chamber of Commerce China: http://www.dccc.nl/
Universities and Research Institutes
China Agricultural University - Energy Engineering and Low Carbon Technology Lab http://www.pciaonline.org/china-agricultural-university-EELC-RRL
University of Science and Technology of China - http://en.ustc.edu.cn/
City University of Hong Kong – School of Energy and Environment - http://www.cityu.edu.hk/see/
Peking University – College of Environmental Sciences and Engineering - http://web5.pku.edu.cn/huanjing/
Beijing University of Chemical Technology - http://www.buct.edu.cn
Qingdao Institute of Bioenergy & Bioprocess Technology (QIBEBT)- http://english.qibebt.cas.cn/
[Market Opportunities for Biomass in China] | [April 10, 2014]
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Chinese knowledge institutes involved in bio ethanol R&D
Source: Bioraffinage in China, Jingmin Kan
Chinese knowledge institutes involved in bio fuelsR&D
Source: Bioraffinage in China, Jingmin Kan
Other organisations
National Development and Reform Commision -www.ndrc.gov.cn
Ministry of Science and Technology - www.most.gov.cn
Ji Lin Fuel Alcohol Co., Ltd. - www.cnpc.com.cn
Henan Tianguan Fuel Ethanol Co., Ltd. - www.tge.com.cn
Anhui Fengyuan Fuel Ethanol Co. Ltd. - www.zlfysh.com
Longyan Zhuoyue New Energy Development Co. Ltd. - www.zyxny.com
National Bureau of Statistics of China - http://www.stats.gov.cn
Biogas association (German) http://www.biogas-
china.org/index.php?option=com_flexicontent&view=category&cid=18&Itemid=35&lang=en
China Biogas Society (CBS)
Chinese Renewable Energy Industries Association (CREIA) (Europe-China Clean Energy Centre)
Existing agreements
Memorandum of Understanding on Sustainable Energy between China and the Netherlands
singed March 24th 2014. This initiates better collaboration in the field of energy, such as
knowledge transfer, investments in the different types of renewable energy and achieving the
energy targets.
Bilateral treaties: http://www.minbuza.nl/producten-en-diensten/verdragen/zoek-in-de-
verdragenbank?treatytitle=&formsubject=&formtreatyparty=&f=&t=&formlocation=&formspecialyear=&formspecialnr=&formtreatytype
=true#jump
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