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In the 1970s, to address energy needs in rural areas, China began to promote the development of biogas. In 1979, the State Council approved the \"Report on Several Issues Concerning Current Rural Biogas Development,\" which stipulated that biogas development should be based on \"member-initiated efforts, with **collective support as a supplement.\" Given the scale of the projects, the amount of gas produced, and the specific uses, small-scale household biogas systems became the dominant option at that time, and they were able to be rapidly promoted with the support of policies. “30 years ago, in rural China, households were the main units of production, so developing small-scale household biogas was the right choice; even a decade or so earlier, it was necessary to provide moderate encouragement for such small-scale biogas systems. ”Li Jingming, head of the Renewable Energy Section at the General Station for Agricultural Ecology and Resource Conservation under the Ministry of Agriculture, highly affirmed the role and value of small-scale household biogas at that time. However, in recent years, problems related to small-scale household biogas systems have been emerging continuously. “It has a low gas production rate, requires no dedicated maintenance, and its quality varies; improper use can even cause certain environmental problems. ”Du Xiangwan, an academician of the Chinese Academy of Engineering, told reporters in an interview about the current drawbacks of small-scale household biogas systems. With the acceleration of urbanization, a large number of rural workers have moved to cities, significantly reducing the ability of household units to maintain biogas systems. At the same time, as agricultural production becomes increasingly scaled up, the issue of small-scale household biogas becomes more prominent. Furthermore, low winter temperatures, unstable biogas production, and increased operating costs in the northern regions of our country lead to a decline in the utilization rate of biogas, which also constitutes an important factor affecting the development of household biogas systems. Against the backdrop of dramatic changes in the rural production and living environment, it has become difficult to maintain household biogas systems stably, making transformation imperative. In April 2015, the **National Development and Reform Commission and the Ministry of Agriculture jointly issued a notice titled \"Notice on Promptly Submitting Applications for Central Budgetary Funding for Rural Biogas Projects in 2015,\" which specified that 2 billion yuan would be allocated for central funding to support large-scale biogas projects in rural areas. According to Li Jingming, out of the 2 billion yuan in dedicated funds, approximately 1.1 billion yuan was used to support pilot projects for ultra-large-scale biogas projects. “Whether at the **strategic level or in terms of industrial development, the necessity of transformation has been recognized, but in reality, policy adjustments in recent years have always lagged behind market changes. Recently, it seems there are signs of moving toward another extreme. ”From a long-term perspective of industrial development, scaling up is indeed the trend. However, Li Jingming predicts that in the next 5–10 years, the capacity to collect raw materials for ultra-large-scale projects as well as the market demand for such projects will likely be very limited; therefore, it is appropriate to develop medium and large-scale biogas projects on a scale that suits local conditions.