New Energy
Black Fungus Waste Bag Biomass Pellets Production and Processing Project of Jilin City
1 Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Biomass pellet fuel has multiple advantages. Firstly, it has high thermal efficiency. The calorific value of biomass pellet fuel is about 0.7-0.8 times that of standard coal, which means 1.25 tons of biomass pellet fuel is equivalent to the calorific value of 1 ton of standard coal. Secondly, it occupies a small space. Biomass pellet fuel undergoes high-temperature compression, saving storage space and is easy for transportation. Thirdly, it enjoys energy security. Biomass pellet fuel is derived from natural biological waste and does not contain hazardous chemicals, making it safe and reliable. Fourthly, it enjoys sustainability. Biomass pellet fuel is converted from waste or residual raw materials, and the burned furnace ash can be used as fertilizer.
The project utilizes Huangsongdian Fungus waste bags to produce biomass pellets, fundamentally solving the problem of waste accumulation and discharge, environmental pollution, and achieving comprehensive resource utilization, providing support for the high-quality development of the fungus industry in Jilin City.
1.1.2 Market prospect
(1) Current analysis of biomass energy industry
Biomass energy refers to the use of biomass energy from biomass raw materials for power generation or other forms of energy utilization, and is a type of renewable energy. Biomass resources come from a wide range of sources, mainly including five categories: Forestry resources, agricultural resources, domestic sewage and industrial organic wastewater, urban solid waste, and livestock manure. As one of the main ways of utilizing biomass energy, biomass power generation mainly includes direct combustion power generation, gasification power generation, and coupled power generation.
Biomass power generation originated from the oil crisis in the 1970s, and Denmark was the first to promote biomass power generation technologies such as straw burning, which gradually gained attention worldwide. In recent years, with the global energy transition and increasing environmental awareness, the scale of biomass power generation industry has continued to grow and has become an important force in international energy transition.
The biomass energy industry mainly includes multiple sub sectors such as biomass power generation, biomass heating, bio natural gas, and bio liquid fuels. Biomass power generation is the main utilization method, among which waste incineration power generation, agricultural and forestry biomass power generation, and biogas power generation are the main forms. In addition, biomass energy can also be used to produce high value-added products such as bio-based chemicals and bio-based materials.
Biomass power generation: Including direct combustion power generation, gasification power generation, and coupled power generation. Direct combustion power generation mainly utilizes agricultural and forestry waste and garbage for combustion power generation; Gasification power generation is achieved by converting biomass into combustible gas through a gasification device for power generation; Coupling power generation is the process of combining biomass with other fuels to generate electricity.
Biomass heating: Biomass heating is a method of using biomass energy for heating, which has the advantages of green, low-carbon, and clean economy. It is an important measure to replace coal-fired heating in counties and rural areas.
Biogas: Biogas is produced through biomass fermentation and purified to obtain bio natural gas, which can be used as a substitute for fossil natural gas.
Biological liquid fuel: Producing liquid fuels such as bio-diesel and bio-methanol through biomass conversion technology, which can be used to replace traditional fuels.
The cellulose portion of biomass can be used to produce industrial products such as pulp and fiberboard, especially in the context of increasing environmental and sustainable development requirements, in this case, straw has the potential as a substitute for wood as a raw material.
The upstream of the biomass energy industry chain consists of fuel resources and auxiliary equipment, mainly including biomass fuels (such as straw, garbage, etc.) and biomass power generation equipment (such as boilers, steam turbines, auxiliary equipment, etc.). The midstream involves the conversion and production of biomass energy, including biomass thermochemical conversion, biomass biochemical conversion, and biomass direct combustion for power generation. The participating entities are biomass energy power generation enterprises. The downstream involves the application and sales of biomass energy products, including power generation, heating, gas supply, and other fields, with participation from state-owned power grid enterprises and other energy users.
By the end of 2023, the newly installed capacity of renewable energy generation in China will reach 305 million kilowatts, with a total installed capacity of 1.516 billion kilowatts and a power generation capacity of nearly 3 trillion kilowatt hours. Among them, the national grid-connected installed capacity of biomass power generation is about 44.14 million kilowatts, an increase of 2.82 million kilowatts from the previous year.
In 2023, China's biomass power generation will be approximately 198 billion kilowatt hours, an increase of 15.6 billion kilowatt hours from the previous year; The annual on-grid electricity consumption is about 166.7 billion kilowatt hours, an increase of 13.6 billion kilowatt hours from the previous year.
The biomass energy market reached 227.481 billion yuan by the end of 2024. It is expected that by 2030, the global biomass power generation market will further grow in size, and the output of the biomass fuel industry will also increase significantly.
The country attaches great importance to the development of biomass energy and has introduced a series of encouraging policies and plans. For example, departments such as the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have issued documents such as the Guiding Opinions on Promoting the Development of Biomass Energy Heating, which clearly set out the development goals and policy measures for biomass energy. In addition, with the proposal of the Carbon Peaking and Carbon Neutrality Goals, biomass energy, as a zero carbon energy source, plays an important role in the energy transition and carbon neutrality process, and policy support will be further increased.
In recent years, breakthroughs have been made in biomass power generation technology and conversion technology, resulting in continuous improvement of biomass energy utilization efficiency and gradual reduction of production costs. In the future, biomass power generation technology will become more mature and efficient, while biomass energy will also develop towards diversified utilization. For example, the production of biogas and bio liquid fuels through technologies such as biomass gasification and fermentation, including heating, gas supply, and by-product ethanol, has gradually matured and begun to be applied on a large scale.
The development of biomass energy faces challenges such as technological bottlenecks, high costs, and dispersed resources. To overcome these challenges, it is necessary to increase technological research and development efforts, improve resource utilization efficiency, and reduce production costs. Meanwhile, biomass energy also faces enormous development opportunities. With the advancement of global energy transition and carbon neutrality, biomass energy, as a zero carbon energy source, will receive more attention and support. In addition, biomass energy can also be combined with agriculture, forestry, environmental protection and other fields to form a good trend of industrial coordinated development.
(2) Current biomass pellet industry
Biomass pellets are granular products made from agricultural waste through processes such as crushing, mixing, drying, and extrusion. They are a new type of clean fuel that can be directly burned. Biomass pellets are classified according to their raw material sources, including sawdust, straw, rice straw, rice husks, peanut shells, corn cobs, camellia shells, cottonseed shells, etc; According to specifications, it can be classified into granular products with diameters of 8mm, 6mm, 10mm, 12mm, 20mm, 60mm, and other multiple specifications.
Biomass pellets have the characteristics of low cost, high added value, high density, convenient storage and transportation, high efficiency and energy saving, wide application and strong applicability, green energy, clean and environmentally friendly, and enjoy the reputation of "green coal". Biomass pellet fuel can be used for warming, heating, cooking, gasification combustion, heat drying, air drying, power generation, etc. With the gradual depletion of non-renewable fuels such as coal, people's awareness of energy crisis is gradually emerging and awakening, and the development and rise of new energy has become the trend.
With the increasing pressure on environmental protection and the continuous consumption of non-renewable energy, environmentally friendly biomass pellets have become one of the key development areas of the future energy industry. The production of biomass pellets in China mainly meets domestic market consumption and a small portion for export. In 2023, the output of China's biomass pellet industry will be 8.18 million tons, with exports of 25000 tons and an apparent demand of 8.155 million tons.
The upstream of the biomass pellet fuel industry chain includes the raw material industry, mainly consisting of agricultural and forestry waste such as sawdust, straw, and rice straw, as well as the auxiliary processing equipment industry, including loaders, crushers, conveyor belts, molding presses, granulators, dryers, packaging machines, etc; The midstream is the industry of biomass pellet fuel research and development, production, and sales; The downstream industries are in demand, including agricultural and forestry biomass power generation, centralized heating, combined heat and power (CHP), feed processing, etc. Among them, biomass power generation is the most important application area.
Straw is an important raw material for biomass pellet production. As a major agricultural producer, China's crop planting area continues to increase, and the amount of straw is steadily increasing. The comprehensive utilization of straw has broad development space. At present, China's straw resources are mainly concentrated in the East China, Central and Southern China, Northeast China, and Southwest regions with high grain production and developed agricultural production, with less distribution in the North China and Northwest regions. For the convenience of collection, transportation, storage, on-site processing and conversion, and nearby consumption, agricultural and forestry straw utilization projects are usually distributed in areas with abundant forestry resources and crop straw resources. Biomass power generation is an important field for the application of biomass pellets.
(3) Market demand in the project location
Located in the Changbai Mountains in Northeast China, Huangsongdian Town is known as the characteristic town of edible fungi in Jiaohe City. The forest coverage rate of the whole town is 91%, with an average altitude of 474 meters. The winter is cold and long, and the temperature difference between day and night in summer is over 15℃. In addition, the abundant forestry resources make Huangsongdian very suitable for the growth of fungal substances. The unique geographical climate has contributed to the excellent quality of Huangsongdian black fungus and yellow Ganoderma, which have become the leading industries and advantageous characteristic industries in the entire town. Huangsongdian has been designated by the General Administration of Quality Supervision, Inspection and Quarantine as a "National Demonstration Park for Standardized Planting of Ten Thousand Acres of Black Fungus". At present, "Huangsongdian Black Fungus" is a regional public brand of agricultural products created by Jiaohe City, with its development centered on Huangsongdian Town and radiating to 17 townships and blocks throughout the city. Currently, 350 million bags of black fungus are planted in the entire town, with a yield of 15000 tons and an output value of 1.05 billion yuan. More than 95% of farmers are engaged in the black fungus planting industry. As the fungus industry continues to expand, 350 million bags of discarded fungus bags and approximately 2 million tons of discarded sawdust are generated. To solve the problem of stacking discarded fungus bags, combined with the demand for enterprise acquisition, reasonable waste bag stacking points are set up in each village, and three enterprises, Shengda Biomass Granules, Mengfei Biotech, and Dunhua Housheng Energy Company, recycle and reuse the waste fungus bags. The recycled waste fungus bags are separated and sold to the plastic particle processing plant in the town. The wood chips in the waste fungus bags are processed into bio-fuel particles. With the development of the industry and the increase in black fungus production capacity, the existing biomass particle production capacity in the town can no longer meet the demand.
1.1.3 Technical analysis
The technology for producing biomass pellets from discarded fungus bags mainly includes the following steps: Raw material pretreatment, mixing treatment, compression molding, drying and packaging. This technology is mature with a wide range of market applications and no technical barriers.
1.1.4 Advantageous conditions of project construction
(1) Policy advantageous
In 2024, the National Energy Administration issued the Guiding Opinions on Energy Work in 2024, proposing to deeply implement the Carbon Peaking and Carbon Neutrality Goals tasks, vigorously promote the high-quality development of non-fossil energy, steadily promote the development of green and clean liquid fuels, orderly promote the innovation and industrialization of non-grain fuel ethanol technology such as cellulose, and focus on the pilot demonstration of bio-diesel promotion and application. The diversified development and utilization of biomass energy has been steadily promoted.
The Implementation Opinions on Comprehensively Promoting the Comprehensive Utilization of Straw (2023-2025) in 2023 clearly stipulate that through technological innovation, policy innovation, and institutional innovation, the construction of a long-term mechanism for comprehensive utilization of straw shall be accelerated, agricultural efficiency should be promoted, and farmers' income shall be increased. A new pattern of modernization construction with harmonious development between humans and nature shall be formed, and comprehensive resource conservation and circular utilization shall be promoted.
The Implementation Opinions of Jilin Provincial Department of Finance on Supporting Green and Low Carbon Development and Promoting Carbon Peak and Carbon Neutrality in 2023 clearly encourage the diversified development of biomass energy such as biomass power generation, biomass clean heating, and biogas.
The Investment Promotion Policy of Jilin City clearly states that the investment projects of Jilin City's Industrial Investment Guidance Fund shall comply with national and relevant industrial policies and development plans, with a focus on investing in tourism, medicine and health, aviation, information technology, new materials, advanced equipment manufacturing, biotechnology, energy conservation and environmental protection, new energy, cultural creativity, modern agriculture, modern service industry and other related industries in Jilin City's "6411" industrial plan, as well as other areas supported by the municipal government for development. Guiding funds can adopt investment methods such as follow-up investment and direct investment, in addition to setting up sub funds through equity participation; Newly introduced investment projects that meet the conditions shall enjoy tax reductions and exemptions in accordance with the current national and provincial tax policies. For projects with a significant contribution rate in Jilin City, in accordance with the spirit of the Notice of the State Council on Relevant Matters Concerning Tax Preferential Policies (Guofa [2015] No. 25), relevant departments shall assist enterprises in applying for tax exemptions and reductions in accordance with the law and regulations; Special funds for the development of industrial enterprises shall be established to encourage the introduction of major projects in traditional industries such as chemical, automotive, metallurgical, and agricultural product processing in the "6411" industrial system that comply with national industrial policies, have strong industrial support, and have significant driving effects; The introduction of emerging industries such as medicine and health, new materials, advanced equipment manufacturing, and electronic information shall be encouraged. Such projects shall be given priority in the allocation of production factors and national and provincial special funds for support.
(2) Resource advantageous
In 2023, Jiaohe City has planted 350 million bags of black fungus, with a production of 15000 tons and an output value of 1.05 billion yuan. Jiaohe City is located in the foothills of Changbai Mountain, with a high and cold terrain and a large temperature difference between day and night, giving it a unique advantage in cold resources. At present, more than 90% of villages in Huangsongdian Town are developing the edible fungi industry, and over 95% of farmers are engaged in industries related to edible mushrooms. More than 90% of farmers' income comes from the edible fungi industry.
Jiaohe City has a large stock of available land resources for development, and newly added and reserved land can meet the needs of new projects. The land prices are at a low level among 41 cities in Northeast China.
(3) Talent advantageous
Jilin City has universities such as Northeast Electric Power University, Jilin General Aviation Vocational and Technical College, Jilin Electronic Information Vocational and Technical College, Jilin Industrial Vocational and Technical College, etc. These universities and colleges provide a continuous stream of talent support for enterprises. These talents not only possess rich practical experience, but also have high technical level and innovation ability, which can solve various technical problems in the production process, improve production efficiency and product quality. At the same time, these professional skilled talents can actively participate in the technological innovation and product research and development work of the enterprise, providing strong guarantees for the sustainable development of the enterprise.
Jiaohe City adds more than 4000 new laborers every year, and various vocational education and training institutions can train more than 8500 people in various occupations according to the needs of enterprises every year.
(4) Location advantageous
Jiaohe City is located at a key hub with developed transportation. It is situated at the axis of the three northeastern provinces and the center of the Northeast Asian economic circle. It borders the Tumen River economic circle to the east, connects Russia and North Korea ports to the Sea of Japan, connects the China Mongolia corridor to Outer Mongolia and Europe to the west, connects Shenyang and Dalian to the Bohai Rim to the south, and connects Russia to the Harbin-Dalian-Qiqihar Economic Corridor to the north. The Changchun-Hunchun Expressway, Changchun-Hunchun high speed Railway, National Highway 302, Provincial Yujiang Highway, and Tumen-Beijing and Tumen-Harbin railways run through the entire area. Jiaohe has fully integrated into Jilin's "half-hour economic circle" and Changchun's "1-hour economic circle". With the deepening implementation of the national Changchun-Jilin-Tumen development and opening-up pilot zone strategy, Jiaohe has become an ideal city for building a processing base and logistics distribution center that connects the Greater Northeast and radiates to five countries in Northeast Asia.
1.2 Contents and scale of project construction
1.2.1 Scale of project construction
The total area of the project is 33000 square meters, and after completion, it can produce 40000 to 50000 tons of biomass pellet products annually.
1.2.2 Contents of project construction
The total construction area of the project is 30000 square meters, mainly including the construction of raw material warehouse, pretreatment workshop, preparation workshop, granulation workshop, packaging workshop, and waste treatment center.
1.3 Total investment of the project and capital raising
1.3.1 Total investment of the project
The total investment of the project is 120 million yuan, including the construction investment of 97.2 million yuan and working capital of 22.8 million yuan.
1.3.2 Fundraising
Fundraising by enterprises independently.
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales income will be 90.47 million yuan, its profit will be 21.42 million yuan, its investment payback period will be 8 years (after the tax, including the construction period of 1 year) and its investment profit rate will be 17.8%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
As a waste product in agricultural production, if not handled properly, discarded bags of black fungus can cause serious pollution to the environment. Through biomass pellet production and processing projects, these waste bags can be converted into biomass pellet fuel, achieving the resource utilization of waste.
The products of the project can provide processing raw materials for the high value-added comprehensive utilization project of biomass in Jilin City, extending and improving the industrial chain of biomass. This not only helps to reduce the accumulation and discharge of waste, reduce environmental pollution, but also conforms to the green development concept advocated by the country, and helps promote the construction of ecological civilization in Jilin City and even in China. By recycling and selling discarded bags, farmers can obtain certain economic benefits, provide more employment opportunities for rural areas, and promote the diversified development of rural economy. It can also solve the problem of collecting biomass raw materials for other projects, further promote industrial development, increase the added value of products after deep processing, and improve the economic benefits of industries in the region, which truly play the role of leading and demonstrating.
1.5 Cooperative way
Joint venture, other methods can be discussed offline.
1.6 What to be invested by the foreign party
Funds, other methods can be discussed offline.
1.7 Project construction location
Huangsongdian Town, Jiaohe City, Jilin Province.
1.8 Project progress status
This project is in the planning stage.
2. Introduction to the Partner
2.1 Basic information
Name: Huangsongdian Town, Jiaohe City
Address: Huangsongdian Town, Jiaohe City
2.2 Overview
Huangsongdian Town is located in the eastern part of Jiaohe City, Jilin Province, with an area of 585.31 square kilometers. The production of edible fungi in Huangsongdian originated in the 1960s and 1970s, with a history of more than 60 years. The variety has developed from the early single fungus to the current three major series of black fungus, wood Ganoderma, and mushrooms, with dozens of varieties, and the scale continues to grow and expand. More than 95% of the agricultural households in the town are engaged in the production, processing, and sales of edible mushrooms, and over 90% of their economic income comes from this industry. As of 2023, Huangsongdian Town has planted a total of 350 million bags of black fungus, with a production of 15000 tons and an output value of 1.05 billion yuan. However, at present, the resource utilization rate and economic benefits of discarded black fungus bags in Jilin City are relatively low, and there is a large surplus of untreated black fungus bags. This project has broad development space.
2.3 Contact method
Contact method of cooperator:
Contact unit: Jiaohe Municipal Bureau of Commerce
Postal code: 132000
Contact person: Wu Han
Tel: +86-432-67250237
+86-15948553866
E-mail: jljhjhj@163.com
Contact method of the city (prefecture) where the project is located:
Contact unit: Investment Promotion Service Center of Jilin Municipal Bureau of Commerce
Contact person: Jiang Yuxiu
Tel: +86-432-62049694
+86-15804325460
E-mail: jlstzcjfwzx@163.com