Development: China's Biomethane Sector Accelerates onto the Fast Track

As a strategic industry under China's "dual carbon" goals, biomethane is transforming from traditional rural biogas projects into a modern, green energy system. This transition is driven by both policy and technological forces, yet it also faces practical challenges in its industrialization process.

In recent years, as the global energy structure shifts towards green and low-carbon development, biomethane, as a crucial renewable energy source, has gradually become a hotspot in the energy sector. Propelled by the "dual carbon" goals, the biomethane industry is experiencing unprecedented development opportunities. In the past year, under the guidance of the Department of Science and Technology and the Department of Agricultural Ecology and Resource Protection of the Ministry of Agriculture and Rural Affairs, organizations like the China Biogas Society and the China Rural Energy Industry Association have focused on the biomethane industry. They have organized a series of industrial exchange and matchmaking events, bringing together experts and representatives from enterprises, research institutes, and industry management departments to discuss topics such as technological innovation, policy incentives, and engineering practices for biomethane, aiming to promote the comprehensive development of biomethane and related industries.

Transformation and Upgrading: The Leap from Biogas to Biomethane

Biomethane is a green, low-carbon, clean, and renewable natural gas produced from various urban and rural organic wastes—such as crop straw, livestock and poultry manure, kitchen waste, and agro-processing wastewater—through anaerobic digestion, purification, and upgrading. It is primarily derived from purified biogas and represents a key direction for high-value utilization of biogas.

For a long time, rural biogas, as an important livelihood project, played a significant role in improving rural production and living conditions, promoting green agricultural transformation, advancing energy conservation and emission reduction in agriculture and rural areas, and protecting the ecological environment. The development of rural biogas in China has spanned half a century, going through five stages: the initial development stage before the 1980s, the technological maturity stage from the 1980s to 2000, the rapid development stage from 2001 to 2006, the stage emphasizing both construction and management from 2007 to 2014, and the current transformation and upgrading stage starting from 2015.

In this current transformation and upgrading stage, China's rural biogas is moving towards biomethane production. Currently, there are 66 biomethane projects nationwide primarily using agricultural waste as feedstock, with a total digester capacity exceeding 1.56 million cubic meters and an annual biomethane production reaching 125 million cubic meters. The function of biogas projects has gradually expanded from solely energy production to encompass comprehensive energy, environmental, and ecological benefits. The range of fermentation feedstocks has also broadened from straw and manure to include urban and rural organic wastes like kitchen waste, agricultural product processing residues, and toilet waste.

According to Professor Duan Na from China Agricultural University, this shift not only reduces carbon dioxide and methane emissions but also, through the multi-pathway substitution of low-quality traditional energy sources like bulk coal and firewood with biomethane, achieves the harmless treatment, resource utilization, and high-value use of urban and rural waste. Replacing chemical fertilizers with organic fertilizers reduces pollution, improves soil fertility, and reconstructs the agricultural ecological cycle.

Application Breakthrough: Extending the Industry Chain from Fuel to High Value-Add

Liquefied biomethane (LBM), identical in nature to liquefied natural gas (LNG) but derived from biomass feedstocks, is now being targeted for the international shipping market. Currently, conventional fossil fuels like diesel remain the main marine fuels. Facing gradually rising carbon costs, biomethane, with its significantly lower carbon emissions compared to conventional natural gas, is expected to become a key option for decarbonizing the international shipping industry.

According to forecasts by the International Energy Agency (IEA), global biofuel demand will reach approximately 200 billion liters by 2028. Data shows that China's technical potential for biomethane exceeds 180 billion cubic meters by 2060, yet production in 2023 was only 500 million cubic meters, indicating immense market growth potential.

The industry's potential has attracted diverse players. For instance, Sinopec Green Energy Geothermal Co., Ltd. completed the country's first "interconnected, gas-certificate integrated" transaction last year, seamlessly integrating biomethane into the conventional gas grid while bundling green certificate trading, pioneering market-oriented exploration for the sector. According to the "Guiding Opinions on Promoting the Industrialized Development of Biomethane," China's biomethane production target exceeds 20 billion cubic meters by 2030, clearly laying out the development blueprint.

"Bioenergy, with its advantages of zero carbon emissions, renewability, and sustainability, is an important means to address global climate change and energy crises," noted Professor Sun Yong from Northeast Agricultural University. He pointed out that biomethane is extending into high-value-added fields like green hydrogen and green methanol through technological innovation. For example, combining wind-solar hybrid power generation with biomass gasification can significantly reduce the carbon footprint of methanol production; synthesizing green methanol and fertilizers from anaerobic digestion byproducts can create a cycle between energy and agricultural production; cellulosic ethanol biorefining models can produce ethanol products for fuel and chemicals from corn stover; and co-producing biochar, heat, gas, and fertilizer can enhance the value of end products.

The cross-sectoral effects of biomethane are becoming increasingly evident. In provinces like Gansu and Liaoning, biomethane is not just an energy product but also provides a solution for treating urban and rural organic waste. In Gaotai County, Zhangye City, Gansu Province, an ecological recycling project capable of producing 20,000 cubic meters of biomethane and organic fertilizer daily is in operation. Crop straw, livestock manure, vegetable waste, and agro-processing residues are processed through anaerobic digestion to produce biomethane, while simultaneously yielding high-quality organic fertilizer, biogas slurry fertilizer, and seedling substrates, building a complete circular economy chain from waste collection and storage to organic farming. In Shenyang City, Liaoning Province, Shanda Biomass Technology Co., Ltd. uses a "dry anaerobic digestion + efficient aerobic composting" process, treating 350,000 tons of livestock manure annually, producing 7 million cubic meters of biomethane per year, and reducing CO2 emissions by 46,000 tons annually. It supplies biomethane to industries like automotive and tire manufacturing while providing biogas fertilizers to surrounding rice and corn growing areas. Furthermore, some companies are experimenting with producing carbon nanomaterials from biomethane, further expanding the boundaries of the industry chain.

Critical Juncture: Industry Faces Multiple Challenges Including Technology and Cost

As a renewable energy source, biomethane can effectively replace fossil fuels, reduce carbon emissions, and is of great significance for achieving the "dual carbon" goals. Industry experts generally believe that China's biomethane sector currently faces rare opportunities.

Domestically, China is a large agricultural country with abundant biomass resources, generating substantial amounts of livestock manure and crop straw. As the control of total energy consumption and intensity shifts comprehensively to the control of total carbon emissions and intensity, China's demand for renewable energy will continue to grow. Internationally, against the backdrop of global joint efforts to combat climate change, industries like international shipping face green transformation and growing demand for low-carbon and zero-carbon green fuels.

Despite the broad prospects, the industry still faces practical bottlenecks. Sun Yong stated frankly that the development of bioenergy, as a new economic driver, faces multiple challenges. Key factors restricting industry development include the urgent need for breakthroughs in technology and equipment, the need to improve economic viability, and the imperfection of standards and certification systems.

To promote the sustainable and healthy development of the bioenergy industry, Sun Yong suggested adopting a balanced approach that values foundational research, strategic planning, and cutting-edge exploration simultaneously. At the **technological level**, increase R&D investment, vigorously promote pilot projects, and strengthen international cooperation and exchange. At the **industrial level**, enhance collaboration among departments such as electric power, agriculture and rural affairs, and forestry to jointly develop the industry, and foster close cooperation across the upstream (material supply), midstream (processing), and downstream (end-use) chains. Regarding **standards**, benchmark against EU norms and regulations to establish a sound certification standards system, while improving systems for carbon trading markets and carbon quota management. At the **policy level**, provide incentives such as tax breaks, subsidies, and loan guarantees to reduce initial enterprise investment costs and promote fair competition between biomethane and other fuels.

Currently, the path forward is gradually becoming clear. Since January 1st of this year, China's first energy-specific law, the **People's Republic of China Energy Law**, came into effect, encouraging the rational development and utilization of biomass energy according to local conditions. Biomethane, being included in the encouraged category, has entered its "highlight moment."

The rise of biomethane represents not just a change in the energy structure, but also an experiment concerning the circular economy and a low-carbon future. It requires sustained support from policy and technology, while also testing the market's recognition of green value. As the "dual carbon" deadline approaches, this industry chain, turning "waste into treasure," may well reshape the green foundation of China's energy landscape.

Source: Farmers' Daily