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Potential usage, vertical value chain and challenge of biomass resource: Evidence from China’s crop residues

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  • Yang, Jun
  • Wang, Xiaobing
  • Ma, Hengyun
  • Bai, Junfei
  • Jiang, Ye
  • Yu, Hai

Abstract

China’s energy needs and its environment are facing great challenges because of the country’s rapid urbanization and industrialization. It is China’s strategic choice to exploit renewable energy to guarantee its energy security and reduce CO2 emissions. Crop residue has been identified and targeted by the Chinese government as a promising renewable energy resource. The purposes of this study are to investigate the potential supply of crop residue nationally and regionally, the vertical value chain from the field to final usage of these crop residues, as well as to conduct cost-benefit analysis on power plant-based crop residue. Our results show that the large amount of crop residue in China has great potential to meet the country’s demand for renewable energy. Crop residues, however, are distributed unequally across regions. Therefore the use of crop residues to produce energy should be different across provinces, especially with respect to large power generation plants. Government supports right now are critical for power plants based on crop residue to survive. Based on our findings, it is suggested that China should attach more importance to technology innovation and creative policy reforms to improve the overall efficiency of the industry and reduce the cost of feedstock.

Suggested Citation

  • Yang, Jun & Wang, Xiaobing & Ma, Hengyun & Bai, Junfei & Jiang, Ye & Yu, Hai, 2014. "Potential usage, vertical value chain and challenge of biomass resource: Evidence from China’s crop residues," Applied Energy, Elsevier, vol. 114(C), pages 717-723.
    • Handle: RePEc:eee:appene:v:114:y:2014:i:c:p:717-723
    DOI: 10.1016/j.apenergy.2013.10.019
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    2. Shafie, S.M. & Masjuki, H.H. & Mahlia, T.M.I., 2014. "Rice straw supply chain for electricity generation in Malaysia: Economical and environmental assessment," Applied Energy, Elsevier, vol. 135(C), pages 299-308.
    3. Montuori, Lina & Alcázar-Ortega, Manuel & Álvarez-Bel, Carlos & Domijan, Alex, 2014. "Integration of renewable energy in microgrids coordinated with demand response resources: Economic evaluation of a biomass gasification plant by Homer Simulator," Applied Energy, Elsevier, vol. 132(C), pages 15-22.
    4. Sastre, C.M. & González-Arechavala, Y. & Santos, A.M., 2015. "Global warming and energy yield evaluation of Spanish wheat straw electricity generation – A LCA that takes into account parameter uncertainty and variability," Applied Energy, Elsevier, vol. 154(C), pages 900-911.
    5. Zhao, Zhen-Yu & Zuo, Jian & Wu, Pan-Hao & Yan, Hong & Zillante, George, 2016. "Competitiveness assessment of the biomass power generation industry in China: A five forces model study," Renewable Energy, Elsevier, vol. 89(C), pages 144-153.
    6. Menglin Xing & Fuzhou Luo, 2018. "Comparative Study on the Optimization Path of Industrial Value Chain in China’s Resource-Based Cities," Sustainability, MDPI, vol. 10(5), pages 1-20, April.
    7. Sun, Dingqiang & Ge, Yang & Zhou, Yingheng, 2019. "Punishing and rewarding: How do policy measures affect crop straw use by farmers? An empirical analysis of Jiangsu Province of China," Energy Policy, Elsevier, vol. 134(C).
    8. Kaiyan Luo & Xingping Zhang & Qinliang Tan, 2016. "Novel Role of Rural Official Organization in the Biomass-Based Power Supply Chain in China: A Combined Game Theory and Agent-Based Simulation Approach," Sustainability, MDPI, vol. 8(8), pages 1-23, August.
    9. Liang Meng & Ahmed Alengebawy & Ping Ai & Keda Jin & Mengdi Chen & Yulong Pan, 2020. "Techno-Economic Assessment of Three Modes of Large-Scale Crop Residue Utilization Projects in China," Energies, MDPI, vol. 13(14), pages 1-19, July.
    10. Chen, Xiaoguang, 2016. "Economic potential of biomass supply from crop residues in China," Applied Energy, Elsevier, vol. 166(C), pages 141-149.

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