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Published on: March 1, 2019

Original title: 国家能源局综合司关于征求对《关于促进生物天然气产业化发展的指导意见（征求意见稿）》意见的函 国能综函新能〔2019〕72 号
Links: Source document (in Chinese) (link).
Annex

Guiding opinions on promoting the development of the bio-natural gas industry
(Draft for comments)

Bio-natural gas refers to green, low-carbon, clean, renewable, non-conventional natural gas produced by anaerobic fermentation and purified and refined, from all kinds of urban and rural organic wastes such as crop straw, livestock and poultry manure, municipal solid waste and industrial organic wastewater. The biogas residue and slurry produced during anaerobic fermentation processes can further be utilized as organic fertilizer。In order to implement the spirit of such documents including the "Opinions of the CPC Central Committee and the State Council on Strengthening ecological environmental protection and resolutely fighting for pollution prevention and control" of the first meeting of the Central Financial and Economic Affairs Commission, the "Notice of the Central Committee of the Communist Party of China on a Strategic Plan for Rural Revitalization (2018-2022)", and the "State Council's Notice on a three-year plan of action to win the war for blue skies", to accelerate the industrialized development of bio-natural gas, the following opinions are hereby put forth。

1. Key opinions on promoting the industrialized development of bio-natural gas

Build a distributed system for production and consumption of clean renewable gas, and effectively replace the scattered use of coal in household stoves etc. in rural areas。Develop bio-natural gas, build a distributed production and consumption system for clean gas, with local feedstock collection, local processing and conversion, and local consumption. Increase guaranteed access to natural gas sources at the county level, accelerate the replacement of coal, especially in rural areas, and control air pollution and help win the war for blue skies。

Ensure large-scale treatment of organic waste, and protect the urban and rural ecological environment。Develop bio-natural gas, in order to handle the various types of urban and rural organic wastes an industrialized and specialized manner, build a commercial sustainable development mechanism, and accelerate solving the problem of environmental pollution caused by pollutant discharges from livestock and poultry farming, and open burning of crop stalks, etc. At the same time, turning waste into treasure, and realize the industrialized utilization of urban and rural organic waste to energy。

Optimize the natural gas supply structure and develop a modern new energy industry。Develop bio-natural gas, based on domestic and endogenous development, to serve as an important supplement to conventional natural gas, and to provide benefits by filling supply shortages of natural gas, to reduce import dependence, and to improve energy security。Promote the transformation and upgrading of biomass energy, accelerate the application of renewable energy in the gas sector, and cultivate and develop emerging renewable energy industries。

Currently, bio-natural gas is in the early stages of development, and is faced with problems and difficulties such as immature technology, an imperfect industrial system, and insufficient policy support。The new era urgently needs strengthened support, improved policies, and accelerated pace of the industrialized development of bio-natural gas。

2. Overall requirements

(1) Guiding principles。

Adhere to the guidance by Xi Jinping thought on socialism with Chinese characteristics for the new era, fully implement the spirit of the 19th National Congress of the Communist Party, and of the Second and Third Plenary Sessions of the 19th Central Committee, adhere to the new development concept, achieve commercialized and industrialized sustainable development of bio-natural gas, with the target of forming a green, low-carbon, clean, emerging industry for renewable gas, integrate bio-natural gas into the national energy system, and strengthen overall coordination。Give full play to the role of markets, establish an industrial system, innovate institutional mechanisms, improve policy measures, accelerate the specialized, market-interpreted, and large-scale development of bio-natural gas, increase the supply of natural gas, protect the urban and rural environment, and promote the construction of an ecological civilization。

(2) Basic principles。

Comprehensive coordination, joint promotion。Coordinate the support policies for the production, supply, storage, and sales of renewable energy and natural gas, let bio-natural gas be integrated into large energy sources, and promote industrialized and market-oriented development。Coordinate flows of various feedstocks in urban and rural areas, coordinate production and consumption, integrate support measures for various aspects, and jointly accelerate the development of bio-natural gas。

Establish systems, circular development。Establish key systems such as guaranteed collection of feedstock materials and bio-natural gas consumption systems, and improve the industry service system。Leverage advantageous resources and flexible distribution, promote the distributed production and consumption of bio-natural gas, directly replacing coal-fired heating supply on the consumer side, forming a circular development model for waste to energy utilization of urban and rural organic wastes, and effectively control air pollution。

Technological progress, driving innovation。Accelerate the advancement of bio-natural gas technology and the modernization of project construction, and improve industrial technology and innovation capabilities。Cultivate and develop emerging markets and value chains for bio-natural gas, innovate investment and financing models and business models, and accelerate the formation of innovative and modern industries。

Market-oriented, supported by policy。Give full play to the role of markets, optimize the market environment, and better mobilize the activity of enterprises and society。Innovative mechanisms and increase policy support, and establish a bio-natural gas policy support system。Simplify administrative management, optimize services, establish an efficient administrative management system, and support the industrialized development of bio-natural gas。

(3) Development targets。

Initial development stage。By 2020, achieve the initial development of bio-natural gas, with initial industrial system establishment, and basic formation of a policy system。The annual production of bio-natural gas will exceed 2 billion cubic meters, replacing circa 3.4 million tons of scattered coal use in household stoves and small-scale boilers in rural and urban areas, and reducing emissions of carbon dioxide by circa 6.2 million tons。Annual waste treatment will exceed 10 million tons of crop straw, 25 million tons of livestock waste, and 5 million tons of other urban and rural organic wastes。

Accelerated development stage。By 2025, bio-natural gas will achieve a considerable scale, forming a low-carbon, green, clean, emerging industry for renewable gas。The annual production of bio-natural gas will exceed 15 billion cubic meters, replacing circa 25 million tons of scattered coal use in household stoves and small-scale boilers in rural and urban areas, and reducing emissions of carbon dioxide by circa 46 million tons。Annual waste treatment will exceed 75 million tons of crop straw, 180 million tons of livestock waste, and 30 million tons of other urban and rural organic wastes。

Steady development stage。By 2030, achieve a steady development of bio-natural gas。The production scale will be the largest in the world, with annual output of bio-natural gas of more than 30 billion cubic meters, accounting for a significant share of domestic natural gas production。This will replace over 50 million tons of scattered coal use in household stoves and small-scale boilers in rural and urban areas, and reducing emissions of carbon dioxide by more than 93 million tons。Annual waste treatment will exceed 150 million tons of crop straw, 350 million tons of livestock waste, and 40 million tons of other urban and rural organic wastes。

3. Strengthen planning guidance

Strengthen national planning guidance。Prepare national-level medium and long-term development plans for bio-natural gas, clarify the road-map for sustainable development and commercialization of bio-natural gas, clarify the professionalized, market-oriented and large-scale development of bio-natural gas, formulate goals and tasks for modern emerging industries, propose a layout of key areas for bio-natural gas development, propose policy measures, and guide the industrialized development of bio-natural gas。

Strengthen national planning alignment。National-level medium- and long-term planning objectives, responsibilities, and layout of bio-natural gas development etc., should be incorporated into national energy development planning, renewable energy development planning, biomass energy development planning, and natural gas development planning, etc., and be properly and comprehensively be connected and balanced with relevant national planning and the energy planning of key bio-natural gas development areas。

Integrate bio-natural gas development planning。Bio-natural gas is to be included in the natural gas development strategy and planning, and in the natural gas production, supply, storage and sales systems, with clarification of the position and role of bio-natural gas in the natural gas development strategy and planning。As a distributed form of natural gas, incorporate it into natural gas production, supply, storage and sales systems, with integrated development and a good interaction with conventional natural gas。

Prepare provincial-level development plans。Guide key areas in preparing provincial-level bio-natural gas development plans, on the basis of comprehensive evaluation of such aspects as urban and rural organic waste resources and natural gas markets in the administrative region. In connection with environmental protection, and clean heating supply, etc., propose development goals, tasks and major layout of bio-natural gas in the administrative region, and propose measures to accelerate the development of bio-natural gas。Strengthening the inter-connectedness of provincial-level planning with relevant other planning, shall be the basis for bio-natural gas development in the administrative region。

Prepare city or county-level development plans。Cities or counties (or equivalent administrative areas) that are rich in urban and rural organic waste resources shall prepare bio-natural gas development plans, determining project layout within the administrative area, and clarify the specific layout of major projects。They shall further determine measures to protect urban and rural organic waste feedstocks, measures for bio-natural gas market consumption, and measures for organic fertilizer consumption。Integrate these into related plans and measures of the administrative area for air pollution control, gas development, clean heating and others。The city or county-level plan shall serve as the basis for development and construction of bio-natural gas projects in the administrative region。

Prepare development plans for key enterprises。On the basis of national-level planning and key areas' provincial-level planning, large energy enterprises and other powerful enterprises shall draw up their own bio-natural gas development plans, and propose project layout for national planning purposes。Enterprises in the gas sector, shall integrate bio-natural gas into the gas layout and gas network infrastructure construction, and include it in the gas business scope, to achieve convergence with the development of conventional natural gas。

4. Accelerate the industrialized and commercialized development and construction of bio-natural gas

Commercialized distributed development and construction。Form industry with local collection of feedstocks, local utilization, and a scattered layout。Create a layout on the basis of optimizing resource volumes, aimed primarily at project capacities with a daily production of 10 to 30 thousand cubic meters, focusing on advancing entire counties, with a decentralized layout, meeting the various requirements for industrialization, and build commercialized projects with sustainable operations。

Implement professional and profit-oriented investment and construction management。Actively support energy companies and other powerful enterprises, implement specialized management and services for investment, construction, and operation, for development and construction of bio-natural gas。Support enterprises focusing on bio-natural gas, opening up a new development path。Support enterprises to develop multiple bio-natural gas projects within the same area, integrating resources, constructing systems, reducing production costs and improving efficiency。

Encourage enterprises active in the natural gas sector to develop and construct bio-natural gas projects。Encourage natural gas companies to develop and construct bio-natural gas projects in conjunction with the development of urban natural gas distribution。For investment in and construction of projects as well as for the feeding in of bio-natural gas into natural gas networks by natural gas enterprises, the state-owned oil and gas enterprises, under the premise of market-oriented conditions, will provide support in the planning for and distribution of conventional natural gas。Companies that invest in importing and infrastructure construction for conventional natural gas are encouraged to invest in the development and construction of bio-natural gas projects。

Accelerate the formation of modernized emerging industries。Actively promote specialization and industrialization of bio-natural gas design, construction, technology, processing, operating, services, safety, environmental protection, and other industry links。Support various market actors to specialize in bio-natural gas consultancy, research and development, equipment manufacturing, etc.。Guide demonstration and comprehensively promote, to accelerate the industrialization process of bio-natural gas, and form a modernized emerging industry。

Cultivate and innovate commercialization models。Expand the fields of application diversified with bio-natural gas, and promote integrated operation of gas, heating, cooling, and electricity supply, etc., and integrate and expand industry chains for organic fertilizer, green feed, organic agriculture, etc., foster the development of new market demand and value, and improve profitability。Design and develop a methodology for carbon emission reductions by bio-natural gas, and promote its participation in carbon emissions trading。

Promote progress of bio-natural gas technologies。Integrate technology introduced from aboard and developed domestically, focusing on breakthroughs in key technologies such as fermentation with a variety of mixed feed-stocks and high-efficiency fermentation, etc., and solve technical bottlenecks。Perform research and promote application of advanced feedstock pre-treatment, anaerobic fermentation, purification and refining, rapid aerobic fermentation to produce fertilizer, automatic monitoring equipment and other complete sets of equipment, and accelerate the standardization of a series of complete sets of equipment。In accordance with local conditions, promote research and development of energy crops on marginal lands。

Strengthen standardization of bio-natural gas construction。Develop and implement industry standards for various industry chain links including engineering and design, construction, operation and management, feed-in into the gas grid, emission of pollutants, and equipment manufacturing, etc., promote the establishment of certification systems for engineering certification corporate certification, establish an industry testing and certification center, to improve the level of development of the industry。

5. Establish and improve a bio-natural gas industry system

Coordinate the utilization of the various urban and rural organic waste feed-stocks。Conduct resource surveys, coordinate the utilization of various agricultural wastes such as crop stalks, livestock and poultry manure, and cultivation waste, as well as urban and rural household waste, river and lake sludge, and various industrial organic wastes such as industrial organic wastewater and sludge, etc. Enhance the capabilities to manage feed-stocks for bio-natural gas, protect the urban and rural environment, and improve the rural living environment。

Establish a feed-stock collection and safeguard system covering both urban and rural areas。In conjunction with establishing a project layout, establish a collection and safeguard system for bio-natural gas feed-stocks that is suited to the variety of resources, and that covers both urban and rural counties。Improve field collection, packaging, transportation and other aspects, and establish a commercial collection, storage, and transportation system for crop straw。Establish a secure and efficient collection system for manure。Encourage bio-natural gas companies to integrate rural land rights transfers and circular agricultural development, and innovate collection and safeguard models for crop straw feed-stocks。

Establishment of biological diversification of natural gas consumption system。Actively develop bio-natural gas cooking and heating in urban residential areas, and incorporate in various application areas including the urban natural gas pipeline network, and for use in power generation, transportation fuel, boiler fuel, and as an industrial feed-stock, forming a diversified consumption system。In areas that have suitable conditions, establish a system of production and consumption that integrates the production, transport, distribution, and storage of bio-natural gas。Give full play to advantageous characteristics on the consumer side, and accelerate the replacement of coal-fired applications in final user sectors。

Establish a system that integrates development of bio-natural gas and town gas。Let bio-natural gas be an significant share of the local town gas, and strengthen coordination and convergence of bio-natural gas and town gas development planning。The layout of bio-natural gas projects and the construction of town gas pipeline network infrastructure should be mutually adapted, and developed in coordination。Bio-natural gas should not carry responsibilities for town gas emergency reserves and peak regulation。

Establish a production and consumption system for organic fertilizer。Actively support bio-natural gas companies to extend their industrial chain, with biogas slurry and biogas residues as the feed-stocks in the bio-natural gas production process, focusing on large-scale projects with an annual production capacity of more than 10,000 tons of solid and liquid organic fertilizer, construct integrated organic fertilizer production bases, establish an organic fertilizer production and consumption service system, and accelerate and promote the specialized, market-oriented, and industrialized development of the organic fertilizer sector。

Strengthen environmental protection throughout the entire bio-natural gas chain。Bio-natural gas companies should co-ordinate the various organic waste feed-stocks, coordinate production, supply, sale, and utilization, establish a environmental protection system that covers all processes including feedstock collection, bio-natural gas project construction, biogas slurry and residue utilization, and other industry links, strengthen environmental protection work, and effectively prevent secondary pollution。Pollution control facilities should be designed, constructed and put into operation simultaneously with the main project。Strengthen the publication of environmental information, and accept societal supervision。

Establish bio-natural gas monitoring systems。Establish a "self-monitored projects, unified industry monitoring, government strengthening supervision" bio-natural gas monitoring system。Project companies are to establish systems and measures for the monitoring of operations, and monitor all process steps including feed-stock delivery to the plant, gas production by fermentation, biogas purification and refinement, and other process steps。Establish a unified and open industry monitoring platform, that monitors the entire industry, and strengthen self-management。The competent energy authorities and other relevant departments will implement efficient supervision。

6. Safeguard measures

Strengthen the organization and coordination。Led by the National Energy Administration, and jointly with other relevant departments, strengthen the organization and leadership for industrialization of the bio-natural gas industry。Incorporate bio-natural gas into the work program for promotion of the coordinated and stable development of natural gas, the work program for production, distribution, storage and sales of natural gas, and the clean winter heating plan for the northern region, etc.。The provincial-level energy authorities shall incorporate bio-natural gas into key relevant work plans, and strengthen co-ordination。

Construct a planning system。Establish a three-tiered planning system for bio-natural gas development。The National Energy Administration shall organize the preparation of medium- and long-term development plans for bio-natural gas, and guide the provinces (autonomous regions, municipalities) in preparing bio-natural gas development plans for their administrative region, and guide central government-controlled state owned enterprises preparing enterprise development plans。Provincial-level energy authorities are responsible for guiding city or county-level governments in preparing bio-natural gas development plans。Planning at all levels should strengthen coherence and coordination with other related planning。

Improve support policies。Revise town gas management regulations, and incorporate bio-natural gas into it, and support the integration of bio-natural gas into the gas pipeline network and consumption of town gas。Formulate policy measures for the preferential utilization of bio-natural gas, and study and establish a green gas quota mechanism。Establish a mechanism for linking the development and utilization of bio-natural gas with the allocation of conventional natural gas and import volumes, and encourage the development of bio-natural gas。Study the formulation of bio-natural gas production subsidies。Implement preferential tax, loan, and land policies etc., for bio-natural gas projects, and have it enjoy green financial support policy。

Simplify administrative management of projects。The National Energy Administration shall develop administrative management guides for bio-natural gas projects, and guide the efficient and simplified administrative management of bio-natural gas by local governments。Deepen the "decentralization of services and administrative management", create a good development environment, and provide good services。Formulate guidelines for the preparation of bio-natural gas planning, project construction and operation management guidelines, etc., and guide various levels of energy authorities and investors。Strengthen the safety conditions and production safety supervision of bio-natural gas projects, and sort out the procedures for the review of safety conditions。Strengthen supervision and administrative management of the industry, and promote self-directed sustainable development by the industry。

Strengthen construction of demonstration projects and technological progress。The National Energy Administration shall organize the construction of industrialized demonstration projects for bio-natural gas, advance technological progress, and establish a system for industrialization。Relying on demonstration projects, organize industry organizations and key enterprises to carry out major technical research projects and work on the localization of equipment production, accelerate the pace of establishment of a system of industrialization standards, and promote the commercialized, sustainable and healthy development of bio-natural gas。