1. Summary

The Project is a consequence of conclusions from China's Rural Energy Development Study, which was completed in 1996. This study recommended an integrated agricultural development approach to improve the livelihood of farm households in rural China. In March 1999, the Ministry of Agriculture elaborated a project proposal stating that this development approach was an option endorsed by central and local government authorities to mitigate the shortage of energy resources, improve the environment, promote the growth of small cities, and develop and improve the local economy in rural areas. China's environment is being degraded by deforestation, communal grazing, excess waste and the widespread use of coal. Furthermore, low-intensive farming has led to increased soil erosion and poverty in the rural areas. In such areas, farm households also have limited access to modern energy sources due to low income.
The actual project intended to increase the living standard of the rural population by, on the one hand, increasing household income and, on the other, decreasing energy shortages and environmental pollution. Appropriate options should be required to help solve the energy shortages by utilising agricultural waste products to produce fuels and produce biogas for farms, villagers, and farming enterprises as well as improve overall agriculture production. This fitted into the rural development strategy of the Chinese Government and the objectives of poverty alleviation and improvement of the environment through sustainable development.
The project wanted to support small farm households by expanding organic greenhouse vegetable, fruit, crop production and animal farming to increase incomes and to establish integrated farming systems with on farm biogas plants to generate clean energy and fuels. Agricultural wastes from crops and waste from human and/or animals will fuel the biogas plants on the farms. The resulting decrease in rural poverty also serves as an incentive for poor farmers and Small Medium Enterprises (SMEs) to participate in current and future Renewable Energy (RE) promotion.
The project intended also to support large biogas plants to treat the waste of large intensive livestock farms, and other bio-energy plants to produce cleaner and more efficient energy to supply rural households as well as small rural villages using decentralised systems.
The scope and the content of the work-package one (WP1) as requested by the E.C. contract has been to collect precise information about market conditions for biomass compaction and utilisation technologies, to assess actual market and market potential and to identify possible barriers, customer habits and financial instruments available in the selected provinces.
It was necessary to make an assessment of the agriculture resources and available residues, the amounts of residues not yet utilised, the potential of wastes and energy crops. To identify the market needs it was useful to evaluate the market trend evolution, the socio-economics, demographics, market barriers and the existing local, provincial, national, international financial mechanisms and application procedures
This project was also of huge importance to the EU, which can offer sound and efficient technologies for R.E. and in particular bio-energy systems for decentralised clean energy production and also for other, high value industrial commodities not yet widely available in China. Therefore the transfer of E.U. technologies and know-how, training activities and the establishment of joint-ventures will be of great importance in contributing to the economic growth of rural districts in China.

It is expected that the project thus will promote business cooperation mainly for the production of clean modern energy, by the transfer of sound technologies, its certification to increase the quality of these technologies on the national market, increasing the capacity of local technicians and contractors in the three selected provinces, providing adequate operation and maintenance (O&M) support, promoting investment in small rural infrastructures and establishment of local SMEs for manufacture and services.

Further information and the complete report: contact@carmen-ev.de

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