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Market-based operating mechanism for large-scale biogas plants in China

Biogas for cooking and electricity

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Biogas is a gaseous mixture generated during anearobic digestion processes using waste water, solid waste (e.g. at landfills), organic waste, and other sources of biomass. Biogas can be upgraded to a level compatible with natural gas (‘green gas’) by cleaning (removal of H2S, ammonia and some hydrocarbons from the biogas) and by increasing its methane share (by removing the CO2).

Clean Development Mechanism market status: 

[This information is kindly provided by the UNEP Risoe Centre Carbon Markets Group.]

The following CDM methdologies are applied for biomass gasification projects: AMS-I.D.: Grid connected renewable electricity generation AMS-III.I.: Avoidance of methane production in wastewater treatment through replacement of anaerobic systems by aerobic systems, AMS-III.H.: Methane recovery in wastewater treatment, AMS-I.A.: Electricity generation by the user and AMS-I.C.: Thermal energy production with or without electricity for small-scale projects.

As of March 2011, there are 14 biomass gasification projects in the CDM pipeline, out of which 8 are registered and for 1 project CERs have been issued.

To introduce a new market-based operating and service mechanism for large- and medium-sized biogas projects, and to draft a code for the design of them, so that biogas projects can run viably over the longer term.


39° 55' 44.04" N, 116° 23' 16.8" E
Main activity and output: 
  • Analyse the current operating status of large and medium-sized biogas projects in Beijing
  • Study market-based management experiences for similar livestock farm biogas project in Europe, particularly Germany
  • Design a market-based operation management model for biogas projects
  • Draft the code for designing of large and medium-sized livestock farm biogas projects in Beijing
  • Identify a biogas project operation company to operate the built projects in Beijing.
  • Compile and conduct a training course for 20-40 biogas project managers as well as stakeholders on how to operate the facility, including a site visit.
  • Hold a workshop to share experiences on actual market-based operations
Expected impact: 
  • Smooth and cost-effective operation of large and medium-sized biogas projects thanks to a well-established operation mechanism which ensures long-term viability.
  • Lower operation costs and guaranteed performance will provide stronger incentive for future investment.
  • Improved living environment for farmers and villagers while reducing living expenses
  • Reduced use of fossil fuel and firewood, thus contributing to climate change mitigation and environmental conservation.
  • Provides a new business model for Chinese environmental industry, expanding the sector in width and depth.