Renewable and Sustainable Energy Reviews 117 (2020) 109474

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Renewable and Sustainable Energy Reviews

journal homepage: http://www.elsevier.com/locate/rser

A systematic comparison of biogas development and related policies

between China and Europe and corresponding insights
Shengrong Xue a, b, Jinghui Song a, b, Xiaojiao Wang a, b, *, Zezhou Shang a, Chenjing Sheng a,
Chongyuan Li a, Yufan Zhu a, Jingyu Liu a
a
College of Agronomy, Northwest A&F University, Yangling, 712100, Shaanxi, China
b
Shaanxi Engineering Research Center of Circular Agriculture, Yangling, 712100, Shaanxi, China

A R T I C L E I N F O A B S T R A C T

Keywords: In order to promote China’s biogas industry development, this paper comprehensively compared the biogas
Biogas development status and related policies between China and Europe and tried to find the shortage and potential implications.
Biogas industry China has access to abundant biomass resources, with considerable biogas potential and an annual theoretical
Biogas-related policy
output of 73.6 billion m3. Household-based biogas digesters coexist with medium and large-scale biogas plants
Policy framework
(MLBPs) in China. Although the number of MLBPs in China was almost two times higher than Europe, the annul
Biogas plant
Biogas commercialization biogas production yield was only half of those in Europe. In China, biogas is mainly used for heating and cooking,
and its power generation capacity is far lower than that in Europe. Overall, biogas industry is more commer­
cialized in Europe than China. In terms of biogas related policies, China has an advantage in quantity, but is weak
in their implementation. Biogas related policies in China mainly focus on agricultural and rural development,
while in Europe, they are aimed at increasing the utilization of renewable energy and reducing greenhouse gas
emissions. In addition, policies in China are mostly filled with encouragement, lacking detailed subsidy schemes
and modes, whereas in European countries are more targeted and scientific. Based on the dissimilarity of current
status and the disparity in policies, a series of countermeasures and suggestions for the development of the
Chinese biogas industry are presented.

1. Introduction
Waste treatment is an effective way that can decrease the de­
pendency on fossil fuels and minimize pollution. Angenent, Karim
(2004) points out that a paradigm shift has occurred in which the
concept of waste disposal has been replaced with attempts to utilize
waste, particularly for sustainability [1]. As a biological processing
strategy, biogas has an important role in waste treatment and utilization.
As a biomass energy, the future of biogas made from organic waste
and wastewater will be determined according to political priorities,
societal needs, economics, technical feasibility, and simplicity [1,2].
Global aims of improving the economy, promoting social advancement,
and meeting the ever-growing material and cultural demands, have
shifted the focus of biogas to pollution control and resource exploration.
Biogas has since made large contributions in these areas, for example, as
of 2015, global biogas production was about 57 billion cubic meters
(bcm), of which German biogas production exceeded 9 bcm, and
Swedish biogas met 30% of the country’s automotive gas demand [3,4].
In China, by 2015, the annual biogas production capacity reached 15.8
bcm, about 5% of the natural gas consumption [5]. Biogas replaces fossil
energy equivalent to approximately 11 million tons of standard coal per
year in China, contributing positively to optimize the national energy
structure and enhance national energy security. According to the needs
and political priorities of building a sustainable society, the

Abbreviations: MLBPs, medium and large-scale biogas plants; bcm, billion cubic meters; PCC, the Party Central Committee; SC, the State Council; IEA, the In­
ternational Energy Agency; IRENA, the International Renewable Energy Agency; EU, the European Union; CO2, carbon dioxide; NDRC, the National Development and
Reform Commission of the People’s Republic of China; MARA, the Ministry of Agriculture and Rural Affairs of the People’s Republic of China; REN 21, Renewable
Energy Policy Network for the 21st century; TS, total solid; CHP, co-generation of heat and power; EBA, European Biogas Association; GHG, the greenhouse gas; PRC,
the People’s Republic of China; NPC, the National People’s Congress; MEE, Ministry of Ecology and Environment of the People’s Republic of China; MF, Ministry of
Finance of the People’s Republic of China.
* Corresponding author. College of Agronomy, Northwest A&F University, Yangling, 712100, Shaanxi, China.
E-mail address: w-xj@nwsuaf.edu.cn (X. Wang).

https://doi.org/10.1016/j.rser.2019.109474
Received 28 May 2019; Received in revised form 20 September 2019; Accepted 6 October 2019
Available online 22 October 2019
1364-0321/© 2019 Elsevier Ltd. All rights reserved.
S. Xue et al.
development of biogas technology plays a vital role in addressing the
conflict between the environment, ecology, energy, and economic
development. Environmental pressure caused by large-scale livestock
and poultry farming is extensive in both developed and developing
countries [6,7]. Large-scale farming also creates additional environ­
mental problems, including an increase in municipal sewage [8,9], do­
mestic waste [9,10], and agricultural residues [11,12]. Corresponding to
this, China’s rapidly developing economy has increased the energy de­
mand. Under the current power consumption structure in which fossil
fuels such as coal and petroleum still dominate, environmental problems
have gradually become one of the predominant issues restricting eco­
nomic development. Thus, the development of the biogas industry is of
particular economic importance. The development of biogas has become
a focus for numerous countries worldwide, corresponding to the
formulation of relevant policies and regulations to support the growth of
the industry. Similarly, the Chinese government attaches great impor­
tance to the development of the biogas industry, promoting
biogas-related policies or regulations annually. Particularly in rural
areas, the Party Central Committee (PCC) and the State Council (SC) have
focused seriously on the progress of biogas. Since 2004, the Central
Document No. 1 has included clear requirements for rural biogas
development every year [5]. As a result, China’s biogas industry has
achieved certain advancements. However, it remains underdeveloped
compared to European countries, and urgently requires advancement
and reform.
For biogas industry development in China, there are many related
researches contributing to it. Firstly, several researches reported the
evaluation of biogas potential [13,14], biomethane producing potential
[15], the performance of distributed and centralized biomass technol­
ogies [16], etc. And then, researchers also studied on the status and
technical trends of biogas production in Europe and China [17]. The
policy has great function in promoting biogas industry development
[18]. Thus, there are many literatures studying on renewable policies
and biogas related policies. For renewable energy, it compared the
policies and status of renewable energy in Australia and China, giving
suggestions for China [19]. In detail, it discussed the history and status
of biogas production and evaluated future biogas potential of China by
five models, proposing some recommendations for biogas related pol­
icies and strategies [20]. And three subsidy alternatives for biogas in­
dustry had been assessed, contributing to biogas industry development
and management [21]. Most literatures focused on the present status
and policies of biogas industry in China, with giving some useful rec­
ommendations and suggestions. However, the development of biogas
industry in Europe gets ahead of other countries. And its success and
successful cases can release much useful experience, being worth
learning by other countries. Obviously, it is lacking of the literature
which presents the experience learning from European successful for
biogas industry.
Thus, it is important to form some literatures to provide some sug­
gestions for government and stakeholders to develop biogas industry of
China. And this study is one kind of them. Therefore, the main purpose
of this paper is to compare the application of biogas in China and Europe
and explore the differences in terms of policy. Based on a review of the
literature and policies, directives for the development of biogas in China
are provided, along with suggestions for future policy design. The results
could be valuable for policymakers to design more appropriate policies
for biogas industry and for stakeholders to make perfect decision to
capture more profit. And these also can be benefit on the Rural Revital­
ization and the Ecological Civilization of China.
2. Status of biogas in China and Europe
2.1. Biomass energy resources potentiality
By 2023, renewables shares for meeting global energy demand are
estimated to grow by one-fifth, reaching 12.4% in the next five years
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
[22]. Renewable power has become the principal technology in the
electricity market, estimated to occupy almost two-thirds of global ca­
pacity additions by 2040 [22]. According to statistical data, the Inter­
national Energy Agency (IEA) has determined that renewables will
experience the fastest growth in the global electricity sector, offering
30% of power requirements by 2023, compared to 25% in 2018 [22].
The use of renewable power sources has experienced significant growth
worldwide in recent years [4]. According to IEA, the share of renewables
in the energy sector is expected to continue increasing, benefitting from
supportive government policies and technological advances, but also
owing to abundant biomass resources. Fig. 1 shows renewable energy
consumption from 2017 to 2023, illustrating that bioenergy was the
approximate equivalent of 460.1 million tons of oil (Mote) in 2017 with
accounting for 16.5% of the increase in 2018–2023. And it reported that
bioenergy would remain the predominate source of renewable energy.
“About three-quarters of the world’s renewable energy use involves
bioenergy, with more than half of that consisting of traditional biomass
use” [23]. That is to say, the majority of renewables have not been
effectively utilized with modern bioenergy technologies, including
biogas produced through anaerobic digestion of wastes or residues,
wood pellet heating systems, and other technologies. Thus, the devel­
opment and utilization of bioenergy resources must be focused on, and
has great potential for exploitation.
According to statistical data by the International Renewable Energy
Agency (IRENA), biomass has a remarkable potential to boost energy
supply in populous countries with growing energy demands such as
Brazil, India, and China [23]. China holds a tremendous volume of
biomass energy resources including agriculture residues, livestock
manure, forest and horticulture residues, and various municipal and
industrial organic wastes. However, according to recent calculations,
1.04 billion tons of crop straw are produced annually in China, but only
900 million tons can be collectible, leaving 140 million tons that is not
effectively utilized (Table 1). Similarly, 2.05 billion tons of livestock and
poultry manure are produced annually in large-scale livestock and
poultry farms, but 56% of this waste is still not effectively utilized [5].
According to Scarlat, Fahl [24], approximately 1.35 billion tons of
manure is generated annually in Europe, with around 1.2 billion tons in
the European Union (EU). And approximately 70% of manure is
collectible in Europe and 72% in EU (Table 1). The significant difference
in collection rates illustrates that China has not formed up an effective
biomass storage and transport system with unevenly distribute re­
sources, as the same finding reported by Asian Development Bank [25].
It also reported that there are no criterions on collection, storage and
transport equipment system or processing, manufacturing. As a result, it
is difficult to have adequate supplies of feedstock for biogas plants. Thus,
it is also one of obstacles to the development of biogas industry in China.
Depending on scientific and technological advancement and socio-
economic development, China has adopted and applied a variety of
bioenergy technologies in processing biomass resources [3,5]. Biomass
resources are processed into a variety of renewable energy, including
electricity, liquid biofuels, and biogas, using modern bioenergy tech­
nologies which align with environmental protection, health, safety, and
sustainable development concepts. For example, the amount of biogas
produced by one household-based biogas digester can replace approxi­
mately 1.5 tons of firewood and straw combined every year. This is
equivalent to the annual biomass of 3.5 mu timber, reducing 2 tons of
carbon dioxide (CO2) emissions each year [5]. According to statistical
data, the total amount of agricultural waste resources that can be used
for biogas production in China is about 1.404 billion tons annually,
which can yield 73.6bcm of biomethane (upgraded biogas), replacing
about 87.6 million tons of standard coal [5]. However, total biogas
production in China was only 15.8 bcm (9.3 bcm methane equivalent) in
2015 [5]. Comparatively, the average biogas production only from
manure in EU was 16.08 bcm [24], higher than its total yield of China
despite having higher amount of manure than EU (Table 1). It presents
the finding reported by Asian Development Bank once again, lacking of
S. Xue et al. Renewable and Sustainable Energy Reviews 117 (2020) 109474

Fig. 1. Renewable energy consumption by technology, 2017–2023 (*source: [22]).

Table 1
Total amount of manure and crop straw wastes annual production and their utilization rate in China and Europe.
Manure Crop straw

Total (billion tons) Collectible (billion tons) Utilization rate (%) Total (billion tons) Collectible (billion tons) Utilization rate (%)

China 2.05 0.90 44 1.04 0.9 87

Europe 1.35 0.94 70 – – –
European Union 1.20 0.86 72 – – –

*Source: [5,24]

an effective biomass collection and transport system [25]. According to 2017 and 2023 are displayed in Fig. 2. It presents that bioenergy con­
the Renewables 2018 report by the IEA, the results obtained from the sumption is far higher in Europe than China. In China, the bioenergy
bioenergy share of renewable energy consumption in major markets in consumption share is less than 20% of that in EU, mainly because a large

Fig. 2. Renewable consumption in major market, 2017 and 2023 (*Source: [22]).

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S. Xue et al.
amount of agricultural waste is not utilized for biogas production or
bioenergy generation [26]. According to estimates by the IEA, China will
become the largest consumer of renewable energy, exceeding the EU,
and come to lead global growth, owing to policies to decarbonize all
sectors and reduce harmful local air [22]. However, the development
and utilization of biomass energy in China is still a challenging task.
2.2. Status of biogas industry
Biogas is a mixture of gas mainly consisting of methane (CH4) and
CO2. It is produced using modern bioenergy technologies for anaerobic
digestion of a series of biomass resources, including the organic food
waste, municipal sewage wastewater, sewage, industrial organic efflu­
ents, energy crops, and agriculture residues (crop straw, livestock and
poultry manures, horticultural residues, etc.). Biogas can be purified
into biomethane by separating the CO2 and other gases. Using separa­
tion and purification to obtain biomethane could enable more conve­
nient utilization to fuel transportation and for injection into the natural
gas network. Biogas production has gradually become industrialization
and commercialization as energy demand and environment protection
becomes more urgent. The application of biogas is also increasing, and it
is now used in vehicles fuels, power generation, and for injection into the
natural gas network [2,4,27]. Traditionally, biogas was principally
yielded in small, household-based digesters for cooking and heating in
developing countries. In contrast, the expansion of biogas in developed
countries has been industrially driven as a commercial medium and
large-scale biogas plants (MLBPs) (a single digester volume is more than
300 m3, and total volume is more than 300 m3 [28]). Various support
programs have been carried out to develop biogas production as one of
the most sustainable alternative energy sources to reduce consumption
and reliance on fossil fuels, mitigate the fossil fuel crisis, cut carbon
emissions and hazardous materials, avoid deforestation, and improve
soil fertility. Moreover, the different end-use capabilities and utilization
efficiency of biogas are favorable, as discussed in the following sections.
2.2.1. Biogas production yield
Biogas production is an important tool to reduce corporate carbon
footprints [29], with production increasing steadily over the past years.
Production capabilities in different areas vary due to various biomass
resources, climate conditions, science and technology development
levels, industrialization and commercialization, and socio-economic
status [20]. Since 2000, global biogas yields increased from 13 bcm,
to 42 bcm in 2008, and reached to 59 bcm by the end of 2015 [4,20].
Biogas has replaced fossil energy of about 11 million tons of standard
coal per year, playing a positive role in optimizing the energy structure
and enhancing energy security worldwide. By 2015, the total annual
biogas production was 15.8 bcm in China, taking up about 5% of the
domestic natural gas consumption [5]. While in Europe reached 31.24
bcm, sharing 4.0% of the natural gas market, respectively. In Europe,
compared to the 1.48 bcm of biogas produced in 2000, this production
growth displays 20 times increase over the past decade. As illustrated in
Fig. 3, the biogas yield of Europe represented nearly half of the global
Fig. 3. Biogas yields in 2015 (Unit: bcm) (*Source: [4,5,24]).
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
biogas production worldwide in 2015, and was twice as much as that of
China. Based on the IRENA report, the total biogas generation in the EU
has the potential to rise to 70 bcm in 2030 using available organic wastes
[30]. In addition, the “Gas for Climate: a Path to 2050” report estimates
that entire annual biomethane yields will reach 98 bcm, contributing to
approximately 22% of the current natural gas market [31]. Similarly,
the National 13th Five-Year Plan for Rural Biogas Development has set
biogas development goals for biogas production reaching a yield of 20.7
bcm in 2020, with adding digester volume of 22.77 million m3 [5]. The
total output biogas in China is far below that in Europe, which could be
due to technology, market orientation, or policy, as discussed in the
following sections.
2.2.2. The number of biogas plants
According to data released by the National Development and Reform
Commission of the People’s Republic of China (NDRC), by the end of 2015,
the number of household-based digesters reached 41.93 million,
benefiting 200 million people. More than 110,000 biogas plants were
constructed at this time, with emerging centralized gas supply and
power generation pilots. Positive results were also achieved in the
integration of the urban natural gas pipeline network, and the number of
rural service outlets reached 110,000, covering more than 74% of
household biogas users [32]. The Chinese government actively devel­
oped household-based digesters, in a policy determined by the funda­
mental economic and social realities of the country. According to
statistical data from the Ministry of Agriculture and Rural Affairs of the
People’s Republic of China (MARA), China had built 22,406 MLBPs with
the number gradually increasing as of 2009, as shown in Fig. 4. During
the “12th Five-Year Plan” period, NDRC and MARA arranged a total of
14.2 billion CNY of investment in the central budget for rural biogas
construction, and continuously optimized the investment structure. As
of 2015, the number of MLBPs rose to 32,070, increasing by 43%
compared to 2009. Furthermore, the development goal of the National
13th Five-Year Plan for Rural Biogas Development is to build 172
large-scale biomethane facilities and 3150 large-scale biogas projects.
Additionally, household-based digesters and small-scale biogas plants
will be developed further, adding digester volume of 22.77 million m3,
and biogas production capacity of 4.9 bcm. An annual new straw pro­
cessing capacity of 8.64 million tons is also planned, along with the
addition of 71.83 million tons of livestock and poultry manure treatment
capacity. The plan will benefit more than 230 million people who are
biogas consumers in rural areas of China [5]. Such measures illustrate
that China’s biogas industry has an absolute advantage in terms of
numbers.
In Europe, the Annual Report 2018 illustrates that the number of
MLBPs has experienced steady growth, with well establishing biogas
market. As shown in Fig. 4, from 2009 to 2016, the number of European
biogas plants experienced a dramatic increase. Based on the existing
plants in 2009, substantial growth of 68.75% was achieved by 2010, and
growth remained consistent in the following years. Compared to 2009,
Europe displayed a grown of 180% by 2015, a rate significantly higher
than that of China. As of 2017, 17,783 biogas plants and 540 bio­
methane plants are in operation [31]. The number of European biogas
plants continue to increase to fulfill the goals of the “Gas for Climate: a
path to 2050” directive. Although the number of MLBPs in China was
almost two times higher than Europe, the annul biogas production was
only half of those in Europe. This demonstrates that biogas plants in
Europe have far higher efficiency and better operating models, and
China must look to such strategies in order to foster its own biogas
development.
The year 2015 was a pivotal time for China’s biogas industry. Pre­
viously, the Chinese government had directed more funds into the
development of household-based digesters than MLBPs. Conversely, the
European biogas industry vigorously developed large-scale plants,
focusing on commercializing and industrializing biogas. China has
subsequently been gradually altering its strategy to develop more MLBPs
S. Xue et al. Renewable and Sustainable Energy Reviews 117 (2020) 109474

Fig. 4. Annual growth rate of medium and large-scale biogas plant number in China and Europe (*Source: [2,18,33]).

of high efficiency. stoves were installed, and more than 126 million people directly used
biogas for cooking and heating, predominantly in China (112 million
people) and India (10 million people) [29]. In 2016, around 13 bcm
2.3. Biogas utilization methods
biogas from household-based digester facilities was used for cooking,
taking account of 82% of total biogas production of this year, according
Raw biogas can be directly combusted to generate power and/or
to the Renewables 2018 of REN 21 report [29]. There are serval reasons
heat, or converted into biomethane that can be injected into the natural
why most biogas was used for cooking in the past time. In the past few
gas grid [31]. It must be noted that the utilization methods of biogas
decades, China has achieved a great success in popularization of
display a series of different functions and have been highly industrial­
household-based digestors in rural area [2]. It aimed to provide energy
ized and commercialized in European countries [20]. Facing a shift to­
for rural area, especially remote areas and insufficient infrastructure
wards renewable energy, 15 European countries have generated
areas. Because of small scale and low efficiency [2,20,25], the amount of
biomethane for direct industrial use, injecting it into the existing natural
biogas is just enough for cooking. In addition, annual biogas generation
gas grid as of 2017. In 2018, three additional countries (Belgium,
for electric installed capacity in Europe also steadily increased, with a
Estonia, and Ireland) connected their first biomethane plants to their
growth rate far exceeding that of China (Fig. 5). Considering Figs. 4 and
national gas grids [31]. European biogas production has embarked on
5 together, China hold a large number of biogas plants, but little biogas
the road to commercialization. However, in China, biogas produced
installation capacity, rising to 455 MW in 2017 from 0 in 2007. During
from household-based digesters is almost entirely used for domestic
this decade, European biogas installed capacity increased from
cooking [34]. Globally, by the end of 2016, over 50 million biogas-cook

Fig. 5. Trends in biogas installed capacity in China and Europe (*Source: [23]).

5
S. Xue et al.
4100 MW in 2009 to 12010 MW in 2017. Compared to Europe, China
installed capacity is negligible. Actually, everyone is able to use and
afford the electricity in everywhere of China since 2015 [35]. And it
leads to more and more families choosing cleaner and more efficient
energy resources (e.g. electricity and solar power) with the change of
energy consumption structure in rural areas [2]. Biogas using for
cooking takes up a smaller and smaller proportion in rural energy.
Therefore, there is no doubt that the way to convert biogas into elec­
tricity to realize industrialization and commercialization is an important
aspect that China must learn from Europe.
2.4. Utilization efficiency of biogas
In rural areas of China, most households obtain energy for cooking
and heating by directly burning coal and biomass like firewood and crop
stalks, with low efficiency stoves which are 2.5 times less efficient than
biogas cookers [36]. Due to the significantly lacking energy infrastruc­
ture, only a small portion of rural residents use biogas, despite many
household-based digesters being deployed in rural areas. According to
GB/T 4750-2016 and NY/T 2142-2012, the design volumetric biogas
production rate of household anaerobic digesters is more than 0.15
(north area) and 0.2 (south area) m3/(m3⋅d), and which of crop straw
anaerobic digestion engineering exceed 0.8 m3/(m3⋅d) [37,38]. How­
ever, the operational efficiency of biogas plants in China is low with low
volume loading rate, which limits profits and cannot keep sustainable
development, comparing with developed countries [25,39]. On the
other hand, in terms of co-generation of heat and power (CHP), the ef­
ficiency of biogas generators in China ranges from 20% to 30%, ac­
cording to reports in recent years [40]. In Europe, Germany has led the
way for domestic combustion engine power generation technology used
in biogas. In dual-fuel units with installed capacity below 200 KW,
power generation efficiency is 33%–37%, and for the installed capacity
of gas-fired biogas engines above 200 KW, is about 34%–37% [40–42].
China’s biogas industry requires similar innovation in technology to
advance biogas utilization.
3. Biogas-related policies
The report of IRENA presented five main actin areas that one was the
exchange of good practices in the design of national policy frameworks,
and in the integration of larger shares of variable renewables into power
systems [43]. Renewable energy can effectively solve environmental
problems caused by the utilization of fossil energy for development.
Thus, renewable energy has featured prominently in the process of
global energy transformation in the context of policy guarantees. New
policy priorities and technological innovation have transformed the
world energy landscape, providing dual benefits of a healthy earth and a
prosperous economy. And governments have played a vital role in
accelerating renewable deployment and global energy transitions,
providing long-term certainty and a positive environment for investors
and producers. Ultimately, evidences show that government policies
guide the development of renewables and the transformation of global
energy. It has been demonstrated that countries with rapid biogas
development have corresponding incentive policies, as seen in the Eu­
ropean biogas industry [44]. Thus, analyzing the implementation policy
and investment environment can provide guidance for biogas develop­
ment in China.
3.1. Number of renewable-related policies for the biogas industry
Appropriately focused can dramatically stimulate the renewable
energy market. For instance, due to supportive policies measures and
long-term targets, the share of market consumption of renewables in the
EU increased dramatically from 9% in 2005, to 16.7% in 2015. Addi­
tionally, EU renewable consumption is on track to achieve the goal of
20% in 2020 [30]. Over the past 20 years, the EU has kept ahead of
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
global biogas deployment, benefitting from its renewable energy pol­
icies [42]. Such policies were published by serval sectors of the gov­
ernment as well as official organizations such as European Parliament and
Council, and the European Biogas Association (EBA). As these sectors and
organizations well operated, new policies are introduced and existing
policies are reformulated to adapt to the changing market environment
and provide a steady framework for investments. That has resulted in
more and more renewable energy policies. According to incomplete
statistics, many countries have carried out a number of renewable en­
ergy policies and measures under the Renewable Energy Directive (Fig. 6),
including Germany (7), Italy (32), Denmark (28), the Netherlands (23),
and the United Kingdom (118). This directive is a common framework,
and it is the main reference basis for countries to formulate their own
national policies for the promotion of renewable energy in Europe. In
the same way, China has also promoted a series of policies and regula­
tions to support renewable development. As early as 1950, the leaders of
the party and country had affirmed that biogas was an important
component of rural energy construction, which lead to biogas booming
throughout the country. Since then, the Chinese government has issued
and implemented many policies to encourage and support its develop­
ment. Additionally, agriculture has an important strategic position in
China, and most renewable-related policies are referring to it. In Fig. 6
and 252 policies for renewables in China are presented, which are
formulated at the national level, with the majority concerning biogas
development. Of these policies, 95 are carried out by the MARA, which is
an integral part of the State Council in charge of agriculture and rural
economic development. Renewable-related policies opened the way for
China’s biogas development, with many achievements that must
continue to reach further targets.
3.2. Policy framework for biogas industry
3.2.1. The basis of policy on biogas industry
The EU established the basis of renewable energy development and
targets in 1997, with Energy for the Future: Renewable Sources of Energy-
White Paper for a Community Strategy and Action Plan [46]. At that time,
the share of renewable consumption in the European energy market was
6%. The targets required to double the renewable energy consumption
to achieve 12% by 2010. In 2007, the European Commission proposed
an integrated energy and climate change package on the EU’s commit­
ment to change (Energy policy for Europe (COM (2007) 1 final) [47] along
with Limiting Global Climate Change to 2 � C– The way ahead for 2020 and
beyond (COM (2007) 2 final) [48]. In these policies, the EU committed to
reducing at least 20% of the greenhouse gas (GHG) emissions, achieving
20% share of the energy market for renewable energy consumption by
2020, compared to the levels in 1990. In 2014 with A Policy Framework
for Climate and Energy in the Period from 2020 to 2030 [49], the EU set a
higher target for the reduction of GHG emissions of 40% by 2030, and at
least 27% renewable consumption. At the end of 2016, the EU published
a revised Renewable Energy Directive (COM (2016) 767 final/2) to secure
the deployment of the goals detailed in A Policy Framework for Climate
and Energy, and ensure that the EU was a global leader in renewables
[50]. It can be observed that the EU’s basic renewable policies display
definite targets and directions. In addition, individual EU countries hold
their own unique biomass resources and varied energy markets. As
illustrated in Fig. 6, these countries issued their own policy measures to
meet individual development situations, called the National Renewable
Energy Action Plan. All plans follow distinctive paths to meet nation
obligations under the Renewable Energy Directive, including the legally
binding 2020 targets. It is undeniable that renewable-related policies in
Europe have specific aims and legally binding agreements, contributing
greatly to biogas industry development.
Contrasting to the EU, the policies and regulations referring to biogas
in China have been designed based on laws and agricultural demand.
Article 54 of the Agriculture Law of the People’s Republic of China (PRC)
[51], implemented in 1993 and revised in 2012, states: “governments at
S. Xue et al.
Fig. 6. Number of renewable policies and measures in China and European countries (*Source: the data of Europe comes from the National renewable energy action
plan under the Renewable Energy Directive [45]; the data of China based on country level comes from the government website, including MARA (95), NDRC (24), the
National Energy Administration (5), the State Council (119), the National People’s Congress (9).).
all levels shall formulate plans for agricultural resources, agricultural
environmental protection and rural renewable energy development.”
Article 4 of the Energy Conservation Law of PRC [52], implemented in
1997 and revised in 2007 and 2016, stipulates: “The State encourages
the development and utilization of new and renewable energy sources”;
Article 11 stipulates that the government provide financial support to
development renewable energy. This law has undergone three revisions,
stipulating that the development of agriculture should be accompanied
by the development of renewable energy in rural areas. This means the
biogas industry will develop effectively, especially following agricul­
tural development. Article 18 of the Renewable Energy Law of PRC [53],
promulgated in 2006, stipulates: “The State encourages and supports the
development and utilization of renewable energy in rural areas. Local
governments should formulate plans for the development of renewable
energy in accordance with local economic and social development,
ecological protection and comprehensive health management needs.
And they should promote and apply technologies such as biogas and
other biomass resources conversion technologies with providing finan­
cial support.” Article 40 of the Environmental Protection Law of PRC [54],
revised in 2014, stipulates that the state promote cleaner production and
recycling of resources. As mentioned above, the policy framework of
biogas in China has been based on law, and normative documents
formulated by the National People’s Congress (NPC) and its Standing
Committee. It stipulates that the government take a position of support
and encouragement for biogas development. The government can be
seen to have attached great importance to biogas and renewable
development, formulating a series of policies and measures to guarantee
healthy development.
3.2.2. Policy in detail
Policies and regulations are capable of reducing the market access
threshold to accelerate renewable deployment. Setting appropriate,
reliable, and stable policy framework and support schemes is illustrated
to be the preeminent force in overcoming barriers during the industri­
alization and commercialization process [30]. Such obstacles can
change with the external environment, requiring authorities to regularly
formulate new policies and revise existing ones. As a result, an
increasing number of directives for establishing and improving policy
framework appeared. In Table 2, the main biogas-related policies in
China are arranged chronologically. It displays that many departments
have participated in single policy formulation that usually cases some
conflicts like different biogas development targets in MARA and NEA [3,
4]. And there were many policies for biogas issued in 2007. Observing
the name of policies only, the keywords of “biogas” and “agriculture”
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
appear widely in PRC policy names, compared to those in Europe. The
PRC policy was created for renewables involving biogas development
and for agriculture development, considering agricultural and energy
development, emphasizing the important position and role of biogas in
the agricultural system. For example, the National Plan for Agricultural
Sustainable Development (2015–2030) [55], tends to promote the
development of ecological recycling agriculture models such as “rice-­
fish symbiosis”, “pig-biogas-fruit”, and an under-forest economy ac­
cording to local conditions. This policy illustrates how the government
encourages implementing ecological recycling models for practicing
conservation-oriented agriculture technologies. And biogas acts as the
core of the entire recycling system that connects planting and breeding,
with great advantages. The Central Committee of CPC and the State
Council have continually attached great importance to biogas develop­
ment in rural areas. Since 2003, the No. 1 Document has declared clear
requirements for biogas development. Several Opinions of the Central
Committee of CPC and the State Council on Promoting the Construction of a
New Socialist Countryside ([2006] No. 1) [56], for example, points out
that the pace of rural energy construction must be accelerated including
vastly increasing investment into biogas development, speeding up the
popularization of household-based digestors, and supporting the con­
struction of MLBPs are required, enhancing the status of biogas in rural
and agriculture production. The No. 1 Document for 2019 [57] states that
pollution control and ecological environment protection in rural areas
must be strengthened by developing recycling agriculture. Thus, biogas
status has been further promoted with numerous advantages such as
sanitation, renewable energy, reduction of smoke dust, and emissions of
hazardous substances. These renewables policies are related to rural
areas and agriculture. This focus is determined by the basic national
conditions of China as an agriculture country.
The EU has also formulated and revised renewable policies based on
the reality and GHG emission targets. In Nov. 2016, the “Clean Energy for
All” Communication was proposed by the European Commission as a
policy of current renewable energy promotion, formulating a target of
27% share of renewable consumption in the EU by 2030 [58]. Moreover,
the Renewable Energy Directive was amended by EU institutions on 14
July 2018, in which a higher legally binding EU-level renewable target
of 32% by 2030 was designed, with an upward review clause in 2023
[45]. This document includes an annual rise of up to 1.3% for renew­
ables in the heating sector and 14% in the transport sector. The later
targets include a sub-target of 3.5% for advanced biogas and biofuels
[31]. Such requirements mean biogas in Europe must develop toward
higher efficiency and quality. Furthermore, all members of the EU must
convert the directive into national law before 30 June 2021, according
S. Xue et al.
Table 2
The time axis of main biogas-related policies in China after 2000.
Time Policy name
2001 Measures for the Prevention and Control of Pollution in
Livestock and Poultry Breeding
2002 Guidelines for Rural Energy Projects for Rural Small-
scale Public Welfare Facilities Construction Subsidy
Funds
2003 Measures for the Administration of Rural Biogas
Construction National Debt Projects (Trial)
2004 The NO.1 Document: Opinions on Several Policies to
Promote Farmers’ Income Increase
2005 The NO.1 Document: Opinions on Several Policies for
Further Strengthening Rural Work and Improving
Agricultural Comprehensive Productive Capacity
2006 The NO.1 Document: Several Opinions on Promoting the
Construction of New Socialist Countryside
Trial Measures for Price and Cost Sharing Management
of Renewable Energy Generation
Regulations on the Administration of Renewable Energy
Power Generation
2007 The NO.1 Document: Some Opinions on Actively
Developing Modern Agriculture and Solidly Promoting
the Construction of New Socialist Countryside
National Rural Biogas Project Construction Plan
(2006–2010)
Construction Scheme of National Rural Biogas Service
System
Opinions on Further Strengthening the Management of
Rural Biogas Construction
Rural Biogas Project Construction Fund Management
Measures
2008 The NO.1 Document: Some Opinions on Strengthening
Agricultural Infrastructure and Further Promoting
Agricultural Development and Increasing Farmers’
Income
Opinions on Accelerating Comprehensive Utilization of
Crop Straw
The 11th Five-Year Plan for Renewable Energy
Development
2009 The NO.1 Document: Some Opinions on Promoting the
Stable Development of Agriculture in 2009 and
Sustainable Income Increase of Farmers
2010 The NO.1 Document: Some Opinions on Enhancing the
Integration of Urban and Rural Development and
Further Consolidating the Foundation of Agricultural
and Rural Development
2011 The 12th Five-Year Plan for Agricultural Science and
Technology Development
2012 The 12th Five-Year Plan for Energy Conservation and
Emission Reduction
Interim Measures for the Management of Additional
Subsidy Funds for Renewable Energy Tariffs
2013 Livestock and Poultry Scale Breeding Pollution
Prevention Regulations
2014 The NO.1 Document: Some Opinions on Fully Deepening
Rural Reform and Accelerating Agricultural
Modernization
2015 2015 Rural Biogas Project Transformation and
Upgrading Work Plan
National Agricultural Sustainable Development Plan
(2015–2030)
2016 Scheme for Promoting Pilot Utilization of Agricultural
Waste Resources
Guidelines for Regional Eco-circular Agriculture Projects
for Comprehensive Agricultural Development
(2017–2020)
The 13th Five-Year Plan for Biomass Energy
Development
Planning of Agricultural Resources and Eco-
environmental Protection Project (2016–2020)
2017 The NO.1 Document: Some Opinions on Further
Promoting the Structural Reform of Agricultural Supply
Side and Accelerating the Cultivation of New Kinetic
Energy for Agricultural and Rural
National 13th Five-Year Plan for Rural Biogas
Development
Renewable and Sustainable Energy Reviews 117 (2020) 109474
Table 2 (continued )
Time Policy name Department
Department
Guidance Opinions on Construction of Clean Energy NDRC
MEE Utilization Project for Straw Gasification
Action Plan for the Resource Utilization of Livestock and MARA
MARA, MF Poultry Manure (2017–2020)
2018 The NO.1 Document: Opinions on Vigorously SC
Implementing the Strategy of Rural Revitalization and
MARA Accelerating Agricultural Transformation and
Upgrading
SC Rural Revitalization Strategic Plan (2018–2022) MARA
Technical Guidelines for Agricultural Green MARA
SC Development (2018–2030)
Action Plan for the Struggle of Pollution Control in MEE
Agriculture and Rural Areas
SC 2019 The NO.1 Document: Several Opinions on Adhering to SC
the Priority Development of Agriculture and Rural Areas
NDRC On Safe Disposal of Rural Biogas Facilities MARA
Pilot Work Program for the Construction of “Waste-free SC
NDRC Cities”
* Source: http://www.gov.cn/index.htm.
SC
to national conditions. While renewable policies in Europe rarely
MARA directly address biogas development, the countries in Europe formulated
NDRC
the policy for biogas development based on the renewables policy
framework of EU. Prior to the 2018 revision of the Renewable Energy
MARA Directive, the 2009 revision (2009/28/EC) pointed out that biogas gen­
eration from the utilization of agricultural residues and other organic
MARA, MF
wastes has significant environment advantages for generating heat and
SC electricity and for use as biofuel due to the high GHG emission reduction
potential. This document also pointed out the significant contribution of
biogas to sustainable development in rural areas, as well as its capacity
to provide farmers with new income opportunities [59]. Furthermore,
SC
member states are required to formulate distinctive policy measures to
NDRC advance the development of renewable energy under the directive,
named National the Renewable Energy Action Plan 2020. This policy for
SC individual countries was prepared in accordance with Article 4(3) of the
Renewable Energy Directive (2009/28/EC). In response, Germany issued
SC the Ordinance for the Promotion of Biogas Supply into the Existing Gas
System to improve the conditions for treated biogas to enter into the gas
grid to achieve natural gas quality [60]. This policy ensured that the
transmission and distribution tariffs are willing to accept biogas.
MARA
Moreover, the government adjusted the Energy Act accordingly. Shortly
SC afterwards, the Federal Council approved a draft including recommen­
dations for reforming to improve and develop the supply condition of
NEA, MF, biogas and the regulatory framework for biogas feed-ins. Meanwhile, the
NDRC
government published a number of relevant technical rules for biogas
SC
grid connection and connection tariffs, such as DVGW G 260 (Gas
SC Quality), DVGW G 280-1 (Gas Odorisation), and DVGW testing basis VP
265-1 (Installations for Processing and Feeding Biogas into Natural Gas
Grids) [60]. Such directives demonstrate how the German government
MARA, NDRC
supports and encourages biogas development in several ways that are
MARA not confined to policy through technical rules for biogas
grid-connection. In addition, the Energy Tax Act provides a tax exemp­
MARA, NDRC, tion for biogas which is combusted immediately after production. In
MEE
accordance with emission reduction requirements of the TA Luft (Clean
MARA
Air Act), the base remuneration for biogas power generation in Germany
was increased by 1.0 cents/kWh (proportionately until reaching
NEA, NERC 500 kW) for old and new plants requiring pollution control licensing
[60]. This financial subsidy has injected energy driving biogas industry
MARA
development. Biogas-related policies in Germany provide a compre­
SC hensive service for biogas development, combining technical rules,
financial support, reducing barriers to access market, and providing
convenience for adding biogas into the gas grid. Similarly, other EU
member states have also formulated a series of policies to drive biogas
NDRC, MARA
development. Individual member states have formulated and improved
biogas-related policies to meet GHG emission targets and fulfill obliga­
tions under the Renewable Energy Directive, boosting EU’s biogas industry
8
S. Xue et al.
to the forefront globally.
China also has formulated fundamental policies for biogas develop­
ment. As early as 1979, the Report on Several Issues in Current Rural Biogas
Construction pointed out that China had obtained great achievements in
promoting biogas [61]. From then on, policies have promoted the
comprehensive development of biogas in rural areas. Driven by invest­
ment from the Central Committee of CPC, biogas development entered a
new stage of rapid development in the period of 2000–2015. Following
2015, the State Council issued the 2015 Rural Biogas Project Trans­
formation and Upgrading Work Plan, reflecting on suggestions for devel­
opment targets and policy measures for rural biogas transformation and
upgrades in the new period [62]. Moreover, the National 13th Five-Year
Plan for Rural Biogas Development presented a comprehensive deploy­
ment of rural biogas development during the 13th Five-Year Plan period,
including development layout, major projects, and policy measures.
Taking into account the biomass resources, biogas development basis,
economic level, and renewable energy demand, the plan divided 31
provinces into three categories: rich-resources areas, medium-resources
areas, and general-resources areas (Fig. 7). For each area, the plan
provides specific development and construction tasks, as well as classi­
fication guidance. Four major biomethane projects and large-scale
biogas projects are detailed in the plan as the core features to support
rural biogas transformation and upgrade. Here, the policy measures are
mainly to solve the problems of industrial barriers, systemic barriers,
Fig. 7. Distribution map of rural biogas resources in China (*source: [5]).
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
policy bottlenecks, and standards shortage in current construction and
operation of biomethane projects and large-scale biogas projects. Such
directives aim to foster a good environment for the transformation and
upgrade of rural biogas in China. The plan also puts forward relevant
requirements such as strengthening organizational leadership,
strengthening industry supervision, and conducting publicity assess­
ment, to ensure smooth implementation.
Compared to Europe, the main body of China’s biogas-related pol­
icies is contained to rural areas according to national conditions,
neglecting industrialization and commercialization which can bring
profits to constrain biogas plants’ sustainable development. China lacks
such policies which can guarantee biogas products to enter into the
market and stimulate biogas plants operation. There are also no tech­
nical specifications for biogas injection into the gas grid, resulting in
discrimination in the renewables market. Furthermore, European
biogas-related policies elevate the market share of renewable con­
sumption and reduction of GHG emission targets as the main objective,
owning a complete policy system. Conversely, China’s biogas-related
policies not only lack systemic directives that can set unified develop­
ment goals and coordinate the work among different departments, but
also universality, lacking the necessary policy to stimulate the indus­
trialization of the biogas market. In fact, it has been shown that policy
with poor implementation has negative impacts on biogas development.
S. Xue et al.
3.3. Related policy for biogas utilization
Economic benefits from the products generated in biogas plants are a
strong driving force for the long-term development of biogas industry.
Such products must be linked to market demand, meaning that when
biogas enters the market, policy measures must ensure that it will not be
discriminated against by other renewable energy sources through
transmission and distribution tariffs. Biogas is mainly utilized for elec­
tricity production, CHP, injection into the natural gas grid, household
cooking and heating, and transport biofuels.
Both China and the EU have developed renewable-related policies
for biogas integration into the natural gas grid. In the EU, individual
countries have devised plans and framed policy measures to eliminate
the obstacles to biogas being injected into the gas grid, according to
Article 16(7) and Article 16(9) and (10) of Directive 2009/28/EC. In
Denmark, section 20 of the Natural Gas Supply Act states that trans­
mission and distribution companies set tariffs, also applying to biogas,
which can safely be injected and transported through the gas grid [63].
In Italy, the Legislative Decree No 164/2000 states that biogas access into
the gas grid cannot be refused for any reason [64]. The government also
formulated specifications to ensure biogas interoperability and inter­
changeability within the transport and distribution grid system. And
some policies in Italy also have subsidies on substrates for biogas plants
[65]. Current policies in China do not frame measures to ensure biogas
access to the gas grid, although some policies mention it. It is worth
mentioning that biomethane production from biogas purification has
already been implemented as a national energy strategy [3,5]. And
relevant policies and standards for biogas will be improved. In addition,
some EU countries including Germany, the Netherlands, Italy, and
Denmark, have already prepared directives to push biogas as a biofuel
into transport markets. Eliminating discrimination against biogas in the
gas grid, accompanied by related supporting policy measures and
standards of injection for natural gas networks is achievable and China is
working towards such measures.
Due to a developed policy framework, falling relative costs, and
worldwide applications of relative technologies, power generation
based on renewable sources reached approximately 25% of global
generation in 2017 [43]. Most members of the EU adopt incentive pol­
icies to subsidize power generation, which is the main driving force to
promote the rapid development of the biogas industry. In Italy, power
production from the biodegradable fraction of waste has the right to
incentives provided for power generation from renewable sources [64].
In Latvia, generators with installed electrical capacity above 1 MW uti­
lizing biogas or biomass may receive guaranteed payment. In Germany,
remuneration of electricity generation from biogas is at 7.0 cents/kWh,
increasing by 1.0 cents/kWh proportionately until reaching 500 kW, in
accordance with the TA Luft (Clean Air Act) [60]. Furthermore, it also
implements classified subsidies for different substrates of biogas system
[66]. The positive growth of installed capacity for biogas can be seen in
Fig. 5, increasing by 195% from 4100 MW in 2007, to 12082 MW in
2017. Comparatively, the installed capacity for biogas power generation
in China was only 455 MW in 2017, far behind Europe. However, it is
worth mentioning that the Chinese government has formulated many
encouraging and supporting policies for biogas power generation. In
2003, Measures for the Administration of Rural Biogas Construction Na­
tional Debt Projects (Trial) set subsidy standards for household-based
digestors and biogas plants [67], in which the government injected
capital to support biogas development. Following this, as seen in the
policy time axis in Table 2, a series of documents include “Trial Measures
for Price and Cost Sharing Management of Renewable Energy Generation”;
“Regulations on the Administration of Renewable Energy Power Generation”;
“Interim Measures for the Management of Additional Subsidy Funds for
Renewable Energy Tariffs”; etc., starting subsidy measures for electricity
generation of renewable energy. And the subsidy standard is 0.25
CNY/kWh. Furthermore, “Notice on Improving Agriculture and Forestry
Biomass Power Price Policy” implements a uniform price (0.75 CNY/kWh)
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Renewable and Sustainable Energy Reviews 117 (2020) 109474
on agricultural and forestry biomass power generation plants [68].
There are no specific subsidy standards only for biogas power genera­
tion, however, meaning that there is no corresponding policy guarantee
for biogas utilization and there is still discrimination against biogas in
the gas grid. In another way, Opinions of the State Council on Accelerating
the Resource Utilization of Livestock and Poultry Breeding Wastes (2017),
instructs that local government shall implement policy determining
biogas power grid benchmarking price and on-grid full-guaranteed
acquisition policy, and reduce the threshold of single-generator power
generation [69]. At the beginning of 2018, Opinions on Vigorously
Implementing the Rural Revitalization Strategy and Accelerating the Trans­
formation and Upgrading, states that the government must promote the
implementation of biogas power generation on-grid, support bio­
methane grid-connected policies, promote the use of biogas slurry
bio-organic fertilizers, and open up breeding loops [70]. Although the
installed biogas power generation capacity is small due to the recent
adoption of biogas power generation technology in China, the govern­
ment still issues numerous policies to its development and is committed
to implementing subsidy policy in the future. Actually, subsidy policies
in Europe have more details in substrates and products for biogas. China
has paid more attention to the construction of biogas plants, which does
not contribute to keep its sustainable development.
4. Inspiration for biogas development in China
4.1. Necessity and feasibility for developing biogas industry
Global renewable demand. According to IEA, renewable power
generation has demonstrated the fastest increase in the power market,
and it will meet 30% of the power demand in 2030 [22]. Furthermore,
renewable power generation is expected to meet that more than 70% of
global growth [22]. Thus, biogas grid-connected power generation can
make a positive contribution in meeting global energy demand.
Ecological civilization construction. The Chinese government has
committed to reduce 40%–50% CO2 emission by 2020 based on 2005
[19]. Anaerobic digestion can do it. The biogas produced by one
household-based digester can replace about 1.5 tons per year of fuel­
wood and crop straws, equivalent to the annual biomass accumulation of
2333 m2 of forest land, and a 2 tons reduction of CO2 emissions [5].
Biogas digestors can degrade the huge organic waste from agricultural
production. Rural biogas construction conserves green water and green
hills, which is an effective way to protect the ecological environment.
Developing biogas is a positive action contributing to ecological
civilization.
Rural revitalization. China is a large agriculture country, which
contains huge emission from rural areas. Encouraging the utilization of
biogas technology to process urban and rural organic wastes, acceler­
ating the transformation of production and lifestyle, and promoting
rural ecological revitalization contributes to sustaining the countryside.
These practices will aid in the maintaining of a natural living environ­
ment, a flourishing ecosystem, and harmonious coexistence between
man and nature.
Green agriculture development. The development of agriculture
and biogas has obtained the required experience and technology for
integrated development. This can be seen through comprehensive uti­
lization technology for biogas slurry and digestate for fertilization, crop
straw-biogas-power generation technology, high-efficiency utilization
technology of biogas slurry, integrated cultivation and recycling tech­
nologies, and large-scale breeding and combination models (pig-biogas-
vegetable/fruit/tea/field crops). According to the Notice of MARA, it
presents that the government is promoting “zero growth of chemical
fertilizer and pesticide use by 2020” for green agriculture development
[71]. It is a good opportunity for promoting the application of digestate
as organic fertilizer.
Good market prospects. Large-scale biogas plants are attractive
economic prospects. According to the Rural Biomass Energy Report of
S. Xue et al.
PRC, livestock enterprises are motivated to build MLBPs for power
generation and heating. Statistical data from MARA shows that 180 Mt
of crop straw and 56% of manures are not effectively utilized every year,
possessing a huge biogas potential [5]. In addition, the annual produc­
tion capacity of biogas is more than 16 bcm, which is about 13% of
natural gas consumption, and will reduce CO2 emission by more than
50 Mt [5]. The annual production of organic digestate fertilizer is almost
400 Mt, which can reduce the amount of chemical fertilizer and pesti­
cide application by more than 20%. Annual income for farmers pro­
ducing biogas shows a potential increase of 40 billion CNY, and the wage
income of biogas-building technicians could be increased by 8.8 billion
CNY [5].
4.2. Improving policy to drive China’s biogas development
After comprehensive comparison between China and Europe, we
could find that first, China possess nearly the same amount of biomass
resources as the whole Europe, but the utilization rate is almost 40%
lower; second, China hold more biogas plants but is nearly 50% lower in
biogas production efficiency; third, large amount of biogas is produced
annually in China but very little is commercially utilized; and fourth,
China has a lot of top-level policy support, but lacks the support of
detailed policies in operational level. Europe’s progress indicates that
biogas development depends largely on policies, in which incentive ones
have the potential to attract market interest and investment. Based on
comprehensive analysis of biogas development and existing biogas-
based policy systems, the following suggestions are detailed below to
aid future biogas industry development in China.
- Policy framework. The government must redesign policy framework
to be more comprehensive, universally applicable and systematic
which is the outline of sub-policy and can guide it, to ensure the
heathy development of biogas. New policy framework must conform
to the five-sphere integrated plan emphasizing the construction of an
ecological civilization, establish high quality systems, and guide the
transformation of the biogas industry towards industrialization and
commercialization. This framework must include a long-term plan­
ning and different development targets in steps. It shall formulate
and enter into force as early as possible because it is the general
principles to guide the detail policies, e.g., five-year plan, subsidy
policy, taxation policy, national criterion.
- Supervisory policy. Some biogas plants lie idle once the owners have
obtained subsidy payments. To prevent this, the government needs
to establish and improve supervisory policy, including strict super­
vision measures and severe penalties. In addition, the government
should form a special supervision department to supervise and
manage biogas plants’ operation, subsidy, safety production. This
department should formulate biogas industry standards, introduce
national standards for acceptance systems, and provide operational
specifications. A responsible supervision department and the positive
supervisory policy can constrain plants’ ineffective operation and
grantee sustainable healthy development. And this policy is available
for biogas plants already built to continue positive operation for
environment.
- Profit evaluation policy. On the basis of the five development con­
cepts of innovating, coordinating, greening, opening, and sharing,
the profit evaluation mechanism of biogas projects should be
established and improved. A national standard evaluation system for
biogas plants must be published to evaluate environmental and so­
cial benefits as the main criterion to determine the amount of sub­
sidy. This evaluation system need the scientific and diversified
environment assessment tools which can refer to the methods pro­
vided in the literature [72]. This policy should be applicated when
the biogas plants are normally operating.
- Multi-stage subsidy policy. The existing subsidy policies are mostly
ambiguous, requiring projects to be built initially, and then receive a
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one-time payment subsidy which cannot keep the plants’ continuous
profits and sustainable development. Such projects are easily
developed, but struggle to attract investment. In this regard, subsidy
policies should be developed with reference to the European expe­
rience, implementing subsidy by stages and targeted subsidy. Sub­
sidy by stages means that subsidy is distributed to users over many
years or multiple times. Targeted subsidy utilizes different subsidy
modes and amounts for different types of biogas projects. On the
other hand, the subsidy policy in regarding the construction of biogas
should pay more attention to the rate of operation of household-
based digestors, not the investment of it. This policy is a long-term
subsidy policy that can be benefit for sustainable development.
- Environment protection policy. As shown in section 4.1, it plays an
important role in ecological civilization, rural revitalization and
green agriculture development. It is necessary to form related pol­
icies to avoid environment pollution during the process of biogas
production. And this policy should set several stages and targets of
environment protection to realize higher profits of the recycling
economy. It should encourage the plants to research and develop
diversified utilization of biogas slurry and digestate. The operators of
the plants can process the digestate into digestate pellets, nutrient
solution, nitrogen-reduced digestate, etc., which can enter into the
market as meeting the criterion formed by the related policies. It also
can provide some subsidies for the CO2 emission reduction and the
contribution to zero growth of chemical fertilizer and pesticide.
- Biogas power generation policy. Policy supports and encourages
biogas power grid-connection, lowering the market access threshold,
and clearing barriers. Drawing on the experience of European
countries in electricity price subsidy, biogas power generation price
subsidies should be implemented according to China’s national
conditions. An overall framework of biogas power generation must
be created to increase the installed capacity of biogas gradually, and
encourage the development and innovation of highly efficient biogas
generators. This policy is available for plants generating electricity.
And it is the supportive and incentive policy for power generation.
- Biomethane production. First, accelerate technological innovation,
establish a good R&D system, and provide guarantees by relevant
policies; Secondly, it needs policy support, implements investment
subsidies for biomethane production from biogas purification, and
implements tax reduction and exemption for its consumption; And
then establishes a subsidy mechanism for end products; In addition,
promote the market-oriented reform of biomethane and build an
active biomethane market. For biomethane as an emerging strategic
industry, the policy should guarantee its healthy development in
terms of technological and operational innovation, products R&D,
market opening.
- Industrialization. Industry demand must be recognized as beneficial.
To maintain long term stable development, the biogas industry must
be profitable in the market. Furthermore, technological innovation
and product research and development must be carried out to meet
the demands of the changing market. The policy should formulate
industry plan and provide finance and diversified investment
channels.
- Commercialization. The conventional development mode of the
biogas industry must be replaced with a market objective of profit to
provide a constant flow of driving force to propel biogas develop­
ment. The policy could encourage enterprises to R&D new products
to extend industry chain, e.g., biomethane, electricity, digestate
fertilizer, eco-green organic crop. The relevant policies should
guarantee the products market size and reasonable price.
- Informatization. Based on modern communication networks and
database technology, a biogas service system and service network
must be established and constantly improved. Staying informed of
relevant information in the biogas industry and market will promote
stable development in the biogas industry. The policy should
S. Xue et al.
facilitate the establishment of data network for biogas plants, real­
izing real-time monitoring.
5. Trends and perspectives
5.1. Techno-economics analysis
China is a large agricultural country, whose livestock and poultry
farming is numerous, distributed widely. The continuous stirred tank
reactor (CSTR) is the most widely used reactor to treat livestock and
poultry wastes in China, becoming fairly mature in application [20,25].
This technology has been used for nearly three decades, since it was
introduced in 1990 [20]. And biogas plants using crop straw as feed­
stocks mainly choose garage-type dry digestion technology [25]. Here­
after, these technologies will be improved to enhance operational
efficiency based on the current situation. And for household-based
digestors, many of them are not operating in many cases as lack of
feedstocks, skilled manpower, equipment, etc. [2]. As shown in section
4.2, household-based digestors should be well maintained technologi­
cally in existing digestors, not investment in new digestors. And ac­
cording to the plan for rural biogas, biogas industry will have a further
rise in large scale and ultra-large scale biogas plants in both quantity and
quality, and the final products will be better developed and more prof­
itable. Biomethane, upgraded biogas, will enter the market with further
mature technology and lower cost. And the electricity generated by
biomethane and biogas will have a decent share. Thus, biogas industry
can become mature commercialized and industrialized gradually.
In the past, biogas industry as the strategic emerging industry with
high initial investment, lacked of financial attractiveness and invest­
ment enthusiasm from social capitals [2,25]. After transformation and
upgrading and policy guidance, it will form diversified investment
channels, not only from the government. Based on mature technologies
and success cases, biogas industry stakeholders will look for ways to gain
higher returns. They can research and develop the final products to
adapt the market. Therefore, future biogas industry will be
market-oriented and the products will truly realize commercialized
application. Therefore, biogas industry can gain economic benefits to
maintain its sustainable development.
5.1.1. Socio-economic
When biogas industry is truly realized industrialized and commer­
cialized, it will bring many socio-economic benefits. The plants can
removal and disposal a large amount of organic wastes, mainly agri­
cultural wastes which can help increase more income for the neigh­
boring farmers [25]. They play a crucial role on solving the
environmental problems, saving energy consumption, and minimizing
pollution, etc. Biogas upgrading to biomethane which injects into gas
grid can contribute to improving the living quality and health of resi­
dents [73,74]. In addition, the electricity generated by biogas plants can
effectively support local power supply and increase the market shares of
renewable energy. Thus, future biogas industry has significant social
benefits, not only increasing local financial revenue but providing jabs.
5.2. Environmental and policy analysis
The Rural Revitalization and Ecological Civilization Construction of
China has presented high specifications for environment protection,
especially in rural areas. Future thriving biogas industry can hopefully
contribute to energy construction and environment protection efforts
[20]. As green industry, it is more outstanding in the ability of
environmental-friendly treatment of wastes. It can contribute to the
improvement of goal of “zero growth of chemical fertilizer and pesti­
cide” and the target of reducing CO2 emission. Future biogas industry
will have the positive effect on the eco-environment protection and
meeting the low-carbon development demand.
In recent years, Chinese government has continued its efforts to
12
Renewable and Sustainable Energy Reviews 117 (2020) 109474
protecting eco-environment and developing renewable energy. It has
promulgated and implemented relevant policies and plans to assure the
healthy development of biogas industry including laws and regulations,
developing plans, finance and taxation policies [25]. However, policies
need to be further improved for better development of biogas industry.
Hereafter, it will coordinate the departments to formulate a compre­
hensive policy framework including uniform biogas yield targets and
reducing emission targets, compatible subsidy measurements, industry
standards, etc.
5.3. Practical implications of this study
Challenges: It is difficult for the government to formulate a
comprehensive policy framework due to the demand of establishment of
a multi-department collaboration leadership system. And biogas in­
dustry is facing transformation and upgrading, urgently needing new
policies to guarantee smooth development. The others are how to
explore new model of diversified investment channels from social cap­
itals, how to supervise and evaluate the cooperation efficiency of biogas
plants, how to applicate the new research achievements in practical
engineering, etc.
Future work and recommendations: Firstly, biogas industry should
be compared using environmental sustainability tools to assess eco-
environment and economy [72]. And then, it should be compared the
factors that directly affects biogas production and efficiency between
Europe and China, e.g., anaerobic digestion parameters including tem­
perature, pH, organic loading rate, etc., operation parameters, upgrad­
ing technologies, types of reactors, etc. The next, this paper more focus
on policy, thus future research could pay more attention on the market
of products from biogas industry. Furthermore, biomethane upgraded
biogas, as new emerging strategic industry, develops well in Europe and
will be energetically developed in China. Therefore, future work could
focus on biomethane industry development. Finally, researchers can
take a comprehensive design, comparing the policy, economy, tech­
nology, market of biogas industry in China and developed countries.
6. Conclusion
Policy is the key for the guaranteeing the normal and sustainable
development of biogas industry [25]. Although the government will
play an important role on the biogas industry in the initial period,
stakeholders have to look for ways to achieve higher returns leading to
thriving biogas industry under the supportive policies. And biogas in­
dustry will achieve successful commercialization and industrialization
when the developing conditions gradually become mature.
Funding
This work was supported by Youth Talent Cultivation Program
Funding of Northwest A&F University; National Natural Science Foun­
dation of China (51508467, 41871205); and China Postdoctoral Science
Foundation (2016T90950, 2015M582708).
Acknowledgement
This work was financially supported by Youth Talent Cultivation
Program Funding of Northwest A&F University, National Natural Sci­
ence Foundation of China (51508467, 41871205), China Postdoctoral
Science Foundation (2016T90950, 2015M582708). We’d like to express
our appreciation to Xingang Lu for his advice and help for this research.
We also thanks for Jun Yang provided help for the graph.
S. Xue et al. Renewable and Sustainable Energy Reviews 117 (2020) 109474

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