Two major problems in the development of biomass industry

With the development of industrialization and agricultural modernization in China and the rapid consumption of non-renewable energy such as oil and coal, the contradiction between waste and environment is becoming more and more serious. Under the great pressure of energy and environment, biomass energy, which is a clean and renewable energy based on agricultural and forestry wastes and oil plants, has attracted more and more attention from the society. Especially for agriculture, the development of biomass industry can also solve the environmental pollution caused by straw open-field burning, livestock and poultry manure, plastic film and so on.

However, the biomass industry, which is widely valued by the society, has encountered difficulties in its development. This topic was strongly concerned by industry experts and exhibitors at the 9th China Energy Saving stoves Expo and 2015 Energy Saving and Environmental Protection stoves (boilers) and Biomass molded fuel Industry Development Forum held in Langfang, Hebei Province in April this year.

"under the influence of macro-economy, the development of biomass industry has been impacted to a certain extent in recent years, which is also the main reason why people pay more attention to the development direction and prospect of the industry in the future." Wang Zhengyuan, vice president and deputy secretary-general of China Rural Energy Industry Association, said.

Subsidy canceled, enterprises encountered policy bottleneck

The "macroeconomic impact" mentioned by Wang Zhengyuan refers to the abolition of financial subsidies to the biomass industry. In October 2008, the Ministry of Finance issued the interim measures for the Administration of subsidy funds for Straw Energy Utilization, which is supported by enterprises engaged in straw energy production, such as straw molding fuel, straw gasification, straw distillation and so on. At the same time, some provinces and cities have also introduced corresponding subsidy policies. Under the encouragement of these policies, the output of biomass molded fuel in China increased from less than 1 million tons in 2007 to 5.5 million tons in 2012, relevant industry standards were formulated and issued one after another, and the biomass industry system was initially formed. drive the new output value of the molding fuel related industry chain to reach more than 12 billion yuan.

However, there are many problems in the rapid development. Wang Fei, director of the Agricultural Department of the Agricultural Ecology and Resources Protection General Station of the Ministry of Agriculture, found in the survey that most biomass energy-related enterprises are small in scale, with 70% of biomass molded fuel enterprises producing less than 10,000 tons per year and 70% of them being sold in the province. The profits of these enterprises are generally low, so financial subsidies are very important to the survival and development of these enterprises. 50% to 60% of biomass stove enterprises have received subsidies, which account for about 70% of the turnover and income of these enterprises.

Relying on subsidies can make a living, so some enterprises use false invoices, false accounts and false sales and other improper means to defraud state financial subsidy funds. The subsidy has been suspended by the Ministry of Finance since 2013, and there is no recovery timetable.

It is a little gratifying that the subsidy policy of some provinces and cities did not end with the suspension of the subsidy policy of the Ministry of Finance. In Hebei Province, where the task of reducing emissions is extremely difficult, Li Huibin, director of the Provincial Agricultural Resources Office, said that the financial subsidy funds in Hebei Province reached 240 million yuan in 2014, and may continue to increase subsidies this year. Used in the province's clean stove promotion, coal-fired substitution and biomass briquette production and so on.

Wang Fei believes that state subsidies are very important to cultivate the market, but after all, subsidies are only phased, and the long-term development of enterprises still depends on the research and development of product technology and market development. Yang Xiaoliang, general manager of Hebei Tiantai Biomass Energy Development Co., Ltd., believes that "scale, specialization and marketization are the way out for the biomass molding fuel industry in the future." Only when we get out of the traditional manufacturing mode, can we have a future for innovation and development. "

Coal prices fall, biomass loses its price advantage

The serious haze over many cities accelerates the adjustment of China's energy structure, and the national haze governance policy provides a broad space for the development of biomass energy. Biomass briquette is an important development direction of renewable energy in the world. China is rich in available biomass resources. At present, about 440 million tons of standard coal biomass resources can be used as energy. In recent years, in the governance of haze, especially in Beijing-Tianjin-Hebei region, some coal-fired boilers have been replaced by biomass boilers. Coupled with the advantages over coal prices, biomass briquette fuel has ushered in an unprecedented peak sales season.

However, the good times did not last long, with the continuous decline of coal prices, the price advantage of biomass briquette was gradually lost, and coal was burnt again in the boilers of some enterprises. In some enterprises, coal is burned in the boiler, but the boiler room is full of biomass fuel.

It is reported that this phenomenon is widespread in the Beijing-Tianjin-Hebei region. "this is already an open secret in the industry." "some biomass power plants are secretly burning coal while taking state electricity price subsidies," said an expert at the China Rural Energy Industry Association. "

There is clearly no good reason to criticize these companies, because it is the market that is the determining factor. Last year, the price of coal in China fell below 500 yuan per ton, and this year it may fall below 400 yuan per ton, while the factory price of biomass briquette fuel is 250,350 yuan per ton, and the ex-factory price per ton of molded fuel after processing is about 800,000yuan. Under such price advantage, biomass molded fuel can not become the first choice of enterprises.

Both the government and enterprises should make a difference in how to solve the difficulties.

Some industry insiders believe that the dilemma encountered by the development of the biomass industry today is directly related to the policy orientation of our country. It is understood that at present, China's biomass energy industry is a typical private investment-led industry, most of which are small in scale, lack of strong financial and technical support, and lack the stamina for the development of enterprises. After the implementation of subsidies in 2008, China's biomass briquette has achieved a golden period of development. However, due to the over-reliance on subsidies and the non-standard operation of some enterprises, the industrial development is facing a dilemma after the suspension of the subsidy.

Zhang Bailiang, deputy director of the expert committee of the China Rural Energy Industry Association and former president of Henan Agricultural University, believes that under the current conditions of imperfect laws and regulations and inadequate responsibilities of the main body of law enforcement, it is normal that there is something wrong with the subsidy policy, but it should not stop. Give up eating for fear of choking. Considering from the aspects of environment, ecology and energy, the development of straw biomass energy has public welfare in rural areas, and the government should support and invest in it.

Under such realistic conditions, enterprises need to change the mode of development. The implementation of the subsidy policy is to give support at the initial stage of development, focusing on helping enterprises to find endogenous power and helping the industry to cultivate a market-oriented mechanism. In the words of Hao Fangzhou, director of the professional committee of energy-saving stoves of the China Rural Energy Industry Association, "it is necessary to integrate government subsidies with market-oriented operation." However, at present, the business decisions of many enterprises are based on subsidy policies, and production plans are also made with government procurement orders, which are lack of market research and analysis of user needs. This dependence psychology restricts the development of enterprise innovation mode and the improvement of product research and development ability.

On April 25, 2015, at the demonstration site of the Ninth Furnace Expo, although the exhibitors set their stoves on fire, they could not hide the worry on their faces. At this time next year, they will still come to this place. I hope the fire will be red at that time.