Thoughts on the industrialization of forest biomass energy
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Thoughts on the Industrialization of Forest Biomass Energy Jiang Shu1, Song Weiming1, Li Nuyun2 (1 School of Economics and Management, Beijing Forestry University, Beijing 100083; 2 Afforestation Department, Forestry Bureau, Beijing 100714) Abstract: Based on an analysis of the meaning and natural characteristics of forest biomass energy, this paper provides a brief overview of China’s current energy situation. Given that the development and utilization of forest biomass energy in our country is still in its initial stages and no substantial industrialization has yet taken place, this paper analyzes in detail the resource, technical, and policy issues associated with the industrialization of forest biomass energy in China. It also puts forward policy recommendations regarding the selection and cultivation of energy-bearing tree species, innovation in technology for development and utilization, as well as production and investment aspects. Keywords: Wood biomass energy; Advantages and disadvantages analysis; Industrialization; Policy recommendations. Chinese Library Classification Number: F316.23. Document Code: A. Article ID: 1673-338X(2007) 01-0016-03. 1 Background of the proposal for the industrialization of wood biomass energy. In the process of economic development in countries around the world today, energy shortages may be one of the most prominent constraints. According to statistics, the total amount of energy produced and consumed globally each year exceeds 10 billion tons of standard coal, of which around 90% is fossil fuel. However, fossil fuels are non-renewable; their large-scale exploitation rapidly depletes the precious resources that have accumulated on Earth over millions of years. This not only puts humanity under pressure due to resource depletion but also leads to serious environmental problems such as climate change and ecological damage, directly threatening sustainable human development. At present, improving energy efficiency, developing and utilizing renewable energy, protecting the ecological environment, and achieving sustainable development have become common actions by the international community. Among renewable energy sources, the research and utilization of wood biomass resources hold an important position. Wood biomass energy comes from wood that results directly from photosynthesis, as well as residues from logging such as roots, stems, and leaves, and processing residues such as sawdust, chips, and wood shavings. It also includes various types of wood product waste that can be used as energy sources. Forest biomass energy is abundant and highly renewable. Against the backdrop of global energy shortages and environmental degradation, the development and utilization of forest biomass energy can effectively alleviate energy shortages, adjust the energy structure, and improve the ecological environment. Biomass energy has always been an important source of energy for human survival, and it is the fourth largest source of energy after coal, oil, and natural gas. Today, forest biomass energy has become an important component of energy sources, holding a significant role in the research on the development and utilization of renewable energy. China is the most populous developing country in the world, and resource and environmental issues pose serious constraints on its development. To address the challenges of energy shortages, environmental pollution, and the migration of rural labor force, and to accelerate the development of a resource-conserving and environment-friendly society, the forestry authorities are, based on successful experiences from abroad and in close consideration of the country’s actual conditions, actively working on formulating development plans and measures for wood biomass energy that meet the country’s own development needs, thereby promoting the research, development, and industrialization of wood biomass energy. 2 Current Status of the Development of Wood Biomass Energy in Our Country 2.1 Current Status of Wood Biomass Energy Resources It is estimated that 5 tons of processed wood biomass can replace 1.5 tons of crude oil, while 1.5 tons of wood biomass can replace 1 ton of standard coal. Of the existing forest biomass in China, there is over 300 million tons of biomass that can be collected for use as industrial energy. If all of this 300 million tons could be utilized, it could replace approximately 200 million tons of standard coal, or 90 million tons of crude oil, thereby reducing current fossil fuel consumption by one-tenth. At present, the main sources of forest biomass energy in China include the following categories. (1) Wood resources. China currently has over 200,000 hectares of fuelwood forests, which can yield approximately 80 million to 100 million tons of biomass with high combustion value each year. The total area of shrublands across the country is over 3 million hectares, and these need to be cut back once every 3 to 5 years. These are all excellent wood fuels. Currently, it is estimated that around 100 million tons of woody fuel resources can be harvested each year (Lü Wen, 2005). In the country’s existing timber forests, there are approximately 3.8 million hectares of young and middle-aged forests. With proper tending and thinning, and assuming an output of 2 cubic meters of timber per hectare, these forests can provide over 100 million tons of raw material for biomass energy production. At the same time, the residues from timber harvesting and processing in forest areas, as well as the branches resulting from pruning for street greening in cities, can also provide a significant source of biomass energy material. (2) Woody oil resources. China currently has a total area of woody oilseed forests exceeding 1.35 million hectares. The annual yield of fruits from the main oilseed species amounts to over 2 million tons, many of which serve as raw materials for biodiesel production. Such as Vernicia fordii; in China, there are currently about 967,000 hectares of such areas, but the utilization rate is still less than 1/5. In addition, Jatropha curcas L., also known as the castor oil plant, is found in regions such as Sichuan, Yunnan, Guizhou, and Guangxi in China. Its fruits have an average oil content of over 40%, and the average fruit yield after 5 years of growth can reach 4,500 to 7,500 kg/hm2, enabling the production of 100 to 150 kg or more of biodiesel. In addition to its wild occurrence, Jatropha curcas has been cultivated on 20,000 hectares in Sichuan and Yunnan. Another example is Pistacia chinensis; it has a wide wild distribution area of approximately 267,000 hectares (Wang Tao, 2005). The oil content in its seeds is over 40%, and 2.5 tons of these seeds can be used to produce 1 ton of fuel. Some of the existing resources on forest-friendly barren mountains and lands can also be used to develop woody oil crops. 2.2 Current status of the development and utilization of forest biomass energy in China At present, the development and utilization of forest biomass energy in China is still in its initial stages; most efforts are focused on testing and demonstration, with no substantial industrialization yet taking place. (1) Biodiesel. Overall, the development of forest biomass diesel in our country is progressing rapidly, and some of the research achievements have reached international advanced levels. Many research institutions and universities have actively worked on the development of energy plants; various new varieties of woody fuel plants with high oil content and strong adaptability have been developed, and these varieties have been demonstrated and promoted on a certain scale. A solid foundation has also been established in the technology for converting woody fuel plants into biodiesel. For example, the College of Life Sciences at Sichuan University and the Sichuan Academy of Forestry have made breakthrough advances in the breeding of Jatropha and its conversion into diesel; the Hunan Academy of Forestry has bred species such as Phoebe zhennanensis and Melia toosendan. The research covers the selection of oil-bearing tree species, the choice of improved varieties, their cultivation, as well as the processing techniques and equipment, and has achieved phased results. In March 2005, significant progress was made in the research on the key technologies for biodiesel production in China; the various parameters of the resulting product met the American ASTM6751 standards, making it fully suitable as fuel for diesel internal combustion engines. Within the next 5 years, China will build industrial demonstration projects for biodiesel production with an annual capacity of 20,000 to 50,000 tons. (2) Fuel alcohol. Bioethanol is one of the most widely discussed petroleum alternatives in recent years. At present, bioethanol based on food starch has largely achieved large-scale production. Countries around the world use various types of plant cellulose – including fast-growing trees, residues from forestry harvesting and processing, and crop straws – as abundant and inexpensive raw materials for producing fuel alcohol. Utilizing lignocellulose to produce fuel alcohol is one of the main ways to address raw material shortages and reduce costs. Since the 1950s, China has carried out research and practical applications on the chemical acid hydrolysis of biomass as well as cellulase hydrolysis. In the near future, the large-scale production of bio-alcohol from lignocellulose is expected to become possible. (3) Wood fuel power generation. China currently generates hundreds of millions of tons of forestry waste and processing residues each year. Shrub resources adapted to desert conditions are also very abundant; alone in Inner Mongolia and Liaoning, there are 146,700 hectares of such shrubs. However, the actual utilization rate at present is only 5%, indicating great potential. Nationwide, there are over 3 million hectares of fuelwood forests. These resources are all biomass with a high calorific value; their heat of combustion typically ranges from 4,000 to 4,800 kcal/kg. They serve as important raw materials for the development of solid biomass fuel and gasification-based power generation. In recent years, solid biomass fuels derived from wood and gasification-based power generation have become increasingly mature in terms of technology, and industrial-scale demonstration projects have been carried out; this will lay a solid foundation for the large-scale conversion of wood waste, shrubs, and other such resources into energy. 2.3 Organizational guarantees for the development and utilization of wood biomass energy: To strengthen the overall planning and coordinated management of energy-related affairs, the State Council established an **Energy Leadership Group in 2005, with the **Premier serving as its head. The Energy Leadership Group is primarily responsible for overseeing forward-looking, comprehensive, and strategic tasks related to energy strategic planning and key policies, energy development and conservation, energy security and emergency response, as well as international cooperation in the field of energy. In line with this, the development and utilization of forestry biomass energy, as an important component of strategic energy, have also strengthened organizational support. In order to vigorously develop forest biomass energy and strengthen the leadership and coordination of efforts related to its development, the **Forestry Bureau established a leading group for forest biomass energy in July 2005, with its office located in the Department of Afforestation.
3 Analysis of the factors influencing the industrialization of forest biomass energy in China 3.1 Factors unfavorable to the industrial development of forest biomass energy (1) Resource issues. Although China is rich in various types of forest biomass energy resources, there is a lack of long-term, systematic, and in-depth research on them; in particular, insufficient research has been conducted on the costs associated with the collection, processing, and utilization of biomass energy, as well as on energy balance. In fact, despite the great potential of forest resources, the amount that can be utilized on a large scale is small; these resources are scattered, making their collection and transportation difficult and costly. When research institutions invest human and material resources in research and achieve initial results, they fail to receive a response from the business community; as a result, it is difficult to achieve economies of scale (Zhang Ruiqin, 2004). The different uses of biomass give it various values. For the same tree species, its value as an energy forest can differ greatly from its value as an economic forest. Moreover, the lack of unified conversion coefficients and methods makes comparisons difficult and unreliable; as a result, it is very challenging to determine consistently the economic viability of utilizing tree biomass. (2) Technical issues. The limitations in the technological level of the manufacturing industry have slowed down the process of localizing and commercializing the equipment needed for the development and utilization of biomass energy. The technology for developing and utilizing forest biomass energy lags significantly behind the world’s advanced levels, with the gap being particularly evident in terms of the industrialization and commercial production of related technical equipment. At present, these technologies abroad have largely been put into industrial production; some of them, such as large and medium-sized biogas projects and technologies for generating electricity and providing heating by directly burning wood, have reached an industrial scale (Zhang Ruiqin, 2004). China is currently in the early stages of industrialization; some projects are still at the demonstration stage, and there is a lack of corresponding technical and product standards and regulations. The history of the development of science and technology worldwide shows that industrialization and commercialization are driving forces behind the acceleration of scientific and technological progress, and they are also the fundamental means for transforming scientific and technical achievements into productive forces. (3) Policy issues. Since the development of forest biomass energy is still a new field at present, **there is a lack of specific legislation regarding forest biomass energy, as well as appropriate operational mechanisms to achieve policy objectives, which prevents the full realization of the effects of these policies. For example, although a policy providing a subsidy of 0.25 yuan/kW for biomass power generation has been introduced, there are still no specific implementation rules or coordination mechanisms in place. In cases where the proportion of agricultural and forestry waste used in combustion is less than 80% of the total heat value, no subsidy is provided, which limits the adoption and dissemination of this mixed-combustion technology. (4) Other issues. When it comes to the development and utilization of forest biomass energy, in addition to obstacles related to resources, technology, and policies, factors such as the financing environment, market potential, and the extent of guidance, as well as public environmental awareness, consumer preferences, and information dissemination, also need to be taken into account. Since forest biomass energy remains a non-commodity energy source, many obstacles must be overcome during its market penetration, such as opportunity costs, production costs, and competing industries. There is also a certain degree of conflict regarding the establishment of enterprises for the cultivation and processing of forest biomass energy resources. Some experts believe that energy forests should be cultivated in areas near processing plants, while processing enterprises argue that areas without such energy forests are not suitable for setting up factories; this, in turn, **limits the number of enterprises engaged in the processing of forest biomass energy. Furthermore, although forest biomass energy is a typical clean energy source compared to fossil fuels, if it is to be utilized on a large scale, it is necessary to pay attention to protecting biodiversity, as well as natural scenic areas and environmentally sensitive zones. At the same time, strict control over the emission of wastewater and waste gases is also required (Zhang Ruiqin, 2004). 3.2 Favorable factors for the industrial development of wood biomass energy (1) **Attention. **In his speech at the Beijing International Renewable Energy Conference, President **** stated that China attaches great importance to the development and utilization of renewable resources, considering it a key measure for promoting economic and social development. More efforts must be made to develop renewable energy. Zeng Peiyan, Vice Premier of the State Council, said at the meeting that China has made accelerating the development of renewable energy sources such as wind power, solar energy, and biomass energy an important task for energy development during the 11th Five-Year Plan period. **The Forestry Bureau has also identified the development of forest biomass energy as an important new area for forestry development during the 11th Five-Year Plan period, and has made the cultivation of energy forests a new project within forestry development during this period. (2) Relevant policies, regulations, and planning support. On June 30, 2004, the State Council approved the \"Outline for the Medium- and Long-Term Energy Development Plan (2004–2020)\". On February 28, 2005, the Ren Party passed the Renewable Energy Law of the People’s Republic of China, which came into effect on January 1, 2006. At present, the relevant departments are working swiftly to formulate corresponding policy measures. In addition, a series of laws regarding biomass energy power generation have also been formulated and implemented. **Given China’s vast territory, significant variations in natural conditions, and uneven socioeconomic development, the Forestry Bureau is formulating a \"National Development Plan for Forest Biomass Energy\" to guide the cultivation and utilization of forest biomass energy resources in various regions, thereby laying the foundation for the development and utilization of forest biomass energy in China. (3) Foster multi-departmental collaboration to actively promote the development of biomass energy. Departments such as the Ministry of Science and Technology in our country, **the Science and Technology Department of the Forestry Bureau, as well as relevant research institutions and universities, have increased their support for technology development and have achieved numerous technical results. **The relevant departments attach great importance to the development of biomass energy, and are actively stepping up efforts in promotion as well as cooperation and exchanges. Attract more domestic and foreign capital, talent, and technology to get involved, develop it as an industry, and continuously adjust and improve it through certain market operation models, thereby gradually achieving industrialization, scale, and efficiency. 4 Policy and Measure Recommendations for the Industrialization of Forest Biomass Energy in Our Country 4.1 Selection and Cultivation of Energy Tree Species ①Energy forests are classified into three categories based on total resource volume, technically exploitable reserves, and economically viable reserves; predictions and plans for their development are made, as well as for project design and evaluation. On this basis, strict specifications and standards for equipment are established. ②Provide a certain amount of direct subsidies for the planting of energy forests, and offer loans to farmers for several years. ③Post-harvest subsidies are provided to farmers, in the form of a certain percentage subsidy when purchasing energy crops. ④A series of standards have been established, such as the oil content in the fruits of certain tree species having to reach a certain percentage, and the power generation capacity per unit having to exceed a certain level. ⑤Encourage the introduction of high-quality tree species from abroad and carry out collaborative research with foreign breeding institutions. ⑥Formulate policies to protect the seeds and fruits of our country’s endemic energy tree species. 4.2 Innovation, transfer, and adaptation of development and utilization technologies ① Provide a subsidy equal to a certain percentage of the technology cost in one lump sum. ②A certain amount of funding for research and development (R&D) is provided each year to encourage the adoption of advanced foreign technologies and management practices, with cost subsidies given at a certain percentage for the technologies purchased. ③Adhere to policies that promote the transfer of proprietary technology, while simultaneously encouraging the acquisition of professional qualifications within the framework of personnel mobility programs (theoretical and technical training, practical experience in this industry). ④Formulate policies to protect patents related to the development and utilization of forest biomass energy in our country. 4.3 Investment Policy ① Establish investment funds for investing in power plants. ②Provide investors with a subsidy equal to a certain percentage of their investment cost. ③Provide technical support to investors, including publications, seminars, one-on-one assistance, equipment financing, technical and energy assessment studies, marketing research, and other mechanisms for delivering information on energy efficiency and renewable energy options and projects to consumers. 4.4 Production Policy ① Purchase Renewable Energy Certificates (RECs). Organizations that purchase renewable energy certificates can profit from selling biomass energy. ②Grid operators are obligated to include compliant power plants in their operational networks, to purchase all the electricity supplied by such plants on a priority basis, and to make the required payments accordingly. The grid operator who is technically capable of integrating it into their grid and is located closest to the power plant site bears the obligation outlined below. Without compromising the priority of the aforementioned power plants, situations in which current can be accommodated through economical expansion of the power grid are also considered technically feasible for the grid to accommodate it. Under these circumstances, the grid operator is obliged to expand the grid immediately at the request of the original transmitter. ③Subsidies of different amounts are provided based on different installed power capacities. 4.5 Consumer policies: Consumers are encouraged to use products based on forestry biomass energy, and subsidies are provided to them at a certain rate. Through the design of the policy framework for the industrialization of forest biomass energy in our country, it is possible to determine the necessary policy directions for advancing this industrialization. This provides a theoretical basis and practical model for such industrialization, as well as a foundation and reference for the forestry sector to formulate relevant policies. (Responsible editor: Zhao Xuan)