fbpx 49438-001: National Biomass Heat Supply Development Strategy | Asian Development Bank

China, People's Republic of: National Biomass Heat Supply Development Strategy

Sovereign (Public) Project | 49438-001 Status: Closed

The proposed technical assistance (TA) aims to assist in developing a clear strategy, policy framework and specific measures to advance the commercialization of untapped biomass-based heat sources in the PRC. It will conduct an in-depth assessment of the current biomass-to-heat market in the People's Republic of China (PRC), in general; and will identify the different challenges and opportunities for a successful commercialization faced by the entire chain of a biomass-to-heat system, in particular. The TA also includes the production of a sourcebook on biomass-to-heat commercialization to broaden the knowledge dissemination on worldwide biomass-to-heat technology advancement and valuable lessons from international experiences on biomass-to-heat markets and systems. International workshops, conferences, and technical trainings will provide opportunities for key stakeholders to gain hands-on learning experiences from international and domestic technical and policy experts on biomass-to-heat chains.

Project Details

Project Officer
Yamamura, Shigeru East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name National Biomass Heat Supply Development Strategy
Project Number 49438-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9112-PRC: National Biomass Heat Supply Development Strategy
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Renewable energy generation - biomass and waste

Gender Equity and Mainstreaming No gender elements
Description

The proposed technical assistance (TA) aims to assist in developing a clear strategy, policy framework and specific measures to advance the commercialization of untapped biomass-based heat sources in the PRC. It will conduct an in-depth assessment of the current biomass-to-heat market in the People's Republic of China (PRC), in general; and will identify the different challenges and opportunities for a successful commercialization faced by the entire chain of a biomass-to-heat system, in particular. The TA also includes the production of a sourcebook on biomass-to-heat commercialization to broaden the knowledge dissemination on worldwide biomass-to-heat technology advancement and valuable lessons from international experiences on biomass-to-heat markets and systems. International workshops, conferences, and technical trainings will provide opportunities for key stakeholders to gain hands-on learning experiences from international and domestic technical and policy experts on biomass-to-heat chains.

Based on all these elements, the TA will prepare a policy note that formulates the national strategy to advance biomass-to-heat commercialization in the PRC. This policy note will discuss broad policy objectives, realistic mid- and long-term targets of biomass share in the heating sector, and quantified greenhouse gas emissions reduction associated with these targets. It will also detail (i) the proposals of technical standards for various forms of biomass-based heat sources in commercialization; (ii) adequate subsidy schemes; (ii) biomass collection policies; (iv) environmental standards for various biomass-heat generation technologies and equipment; and (v) research and development as well as technology transfer support to advance biomass-to-heat technologies domestically.

Project Rationale and Linkage to Country/Regional Strategy

Providing heating to the population residing in the northern part of the PRC has posed a challenge to the low-carbon development, an important component of the PRC's ecological civilization process. The municipal governments of major cities address this challenge by banning the use of coal for heating in order to mitigate poor air quality and encourage the use of low-carbon and renewable energy sources. Yet, many institutional and financial barriers exist for clean and renewable heat sources to compete with cheap and abundant coal. The Government of the PRC therefore aims to create enabling policy and market conditions for renewable energy sources. One of the most promising and widely available renewable resources is biomass. Other renewable energy sources such as photovoltaic, water, and wind are already gradually adopted in the PRC's energy system, whereas biomass remains underexploited despite its potential to replace significant amounts of coal-based heating.

The PRC's forestry waste for biomass production potential is at about 300 million metric tons (MT)/year, that for animal waste between 135,170 million MT/year, and of the 179 million MT/year of municipal solid waste, about 60% is organic waste. The agricultural sector can supply about 250 million MT/year of crop residues for biomass-based energy production provided the prices for such residues are attractive enough.

In the European Union, the technological leader in biomass energy, almost half of the 2014 renewable energy consumption came from biomass. Germany, France, and Sweden are the leader in biomass-to-heat systems. With a turnover of close to 42 billion (est. $47 billion) in 2013 and employing 380,200 people of which many are in rural areas, the European biomass and biogas sectors are providing a good example for successful commercialization. Yet, current biomass utilization in the PRC is mostly small household- and/or community-based and lacks a supportive institutional framework that could boost its commercialization to reach its full potential. Weak enforcement of environmental standards, including restrictions on crop residue burning by farmers that causes extreme air pollution each year after harvesting season, is reducing the opportunities to turn particularly agricultural waste into renewable energy. To exploit the existing opportunities, the PRC needs to improve its regulatory system, develop clear industry standards, tap into foreign expertise on biomass and close its technological gaps, specifically on biomass combined heat and power, biomass pellet boiler, biogas digestion and purification, and biomass gasification.

The National Energy Administration plans to support commercialization of biomass by simultaneously designing an adequate policy framework and taking measures to support the biomass technology enhancement. Reiterating the importance of these efforts, the Suggestions of the CPC Central Committee on the 13th Five-Year Plan for National Economic and Social Development included, under the Green Development and Ecological Environment Improvement section, the accelerated development of biomass as one of the energy sources supporting the country's low-carbon and circular economy targets, while also putting an increased emphasis on waste including organic waste-treatment and usage.

Impact Biomass supply in the PRC heating systems expanded.
Project Outcome
Description of Outcome Biomass-based heat sources in the PRC successfully commercialized
Progress Toward Outcome Not yet due.
Implementation Progress
Description of Project Outputs

Study on the current biomass-to-heat market in the PRC prepared

Sourcebook on advanced biomass-to-heat technologies, institutions, and international best practices on biomass-to-heat commercialization produced

Capacity strengthening on biomass-to-heat commercialization implemented

Policy note on the PRC's strategy to advance biomass-to-heat commercialization developed

Status of Implementation Progress (Outputs, Activities, and Issues) The inception report was well received during the inception workshop. The interim workshop is scheduled on 21 March in Beijing.
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

The proposed TA will engage a consulting firm consisting of four international consultants (5 person-months), and four national consultants (31 person-months) with expertise in biomass-to-heat policy, biogas and biomethane technology, gasification technology, biomass molding fuel boiler technology, waste management and policy research, and environmental engineering.

The consulting firm will be engaged in accordance with Asian Development Bank's Guidelines on the Use of Consultants (2013 as amended from time to time), using the quality- and cost-based selection method with a quality-cost ratio of 90:10 by requiring the submission of a simplified technical proposal covering all aspects of the terms of reference.

Responsible ADB Officer Yamamura, Shigeru
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
National Energy Administration
38 Yuetan Nanjie, Beijing, 100824
Timetable
Concept Clearance 14 Mar 2016
Fact Finding 17 Mar 2016 to 17 Mar 2016
MRM -
Approval 13 May 2016
Last Review Mission -
Last PDS Update 22 Mar 2018

TA 9112-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 May 2016 13 Jun 2016 13 Jun 2016 31 May 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 13 May 2016 297,771.56

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 9112 10 Nov 2016 CECEP Consulting Co., Ltd. (China, People's Republic of) 16TH FLOOR, BUILDING A, JIENENG MANSION, XIZHIMEN NORTH STREET, HAIDIAN DISTRICT, 100082, BEIJING, CHINA National Energy Administration 349,182.00

Procurement Plan

None currently available.