Bio-natural gas industry in China: Current status and development

Lei Zheng, Shikun Cheng, Yanzhao Han, Min Wang, Yue Xiang, Jiali Guo, Di Cai, Heinz-Peter Mang, Taili Dong, Zifu Li, Zhengxu Yan and Yu Men

Renewable and Sustainable Energy Reviews, 2020, vol. 128, issue C

Abstract: China has promoted its biogas industry for a long time and begun to support bio-natural gas (BNG; also known as biogas upgrading or biogas-to-biomethane) projects for the first time in 2015 at the central government level. This study presented a comprehensive overview of the BNG industry in China, including its status quo, national strategic planning, upgrading technologies, investment cost, potential, and opportunities and challenges. A total of 65 BNG demonstration projects were approved by the central government between 2015 and 2017, and 197 projects are expected to have been built by 2020 as part of the 13th Five-Year Plan (2016–2020). BNG is an emerging industry, and its development provides several opportunities, including a huge natural gas demand, national policy incentives, integrated agriculture, and reduced carbon emissions. The challenges and barriers to such developments include the high upgrading cost, fluctuating natural gas prices, unsound market access mechanism for biomethane and biofertilizer, scarce competition-oriented feedstock resources, incomplete standard system and cross-sectorial management, imperfect policy and subsidy mechanism, and lagging technology and equipment. China can learn from other developed countries in four ways. First, the country must enhance the cost effectiveness of its subsidies. Then, China must highlight the operations of its BNG industry and evaluate its performance; prioritize digestate management in the planning stage; improve its project service level and reinforce research and development. The findings of this work provide a valuable reference for other developing countries that intend to address energy shortage issues and integrate waste management into their regional planning.

Keywords: Biogas; Bio-natural gas; Biomethane; Potential; China (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.rser.2020.109925

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