Las Vegas, Nevada and Xinhua, China [RenewableEnergyAccess.com] China Holdings, Inc., a global diversified assets holdings company and its subsidiaries announced this week that the company has signed a development contract for the rights to develop and construct the Biomass Renewable Energy Project, which has a power capacity of 50 megawatts (MW) through its controlled subsidiary ‘China Power, Inc.’ with the local government in HeBei Province, the People’s Republic of China.
The Biomass Energy Project (Power Capacity: 50MW) has a total expected annual power generating capacity of 400 million kilowatt hours (kWh) and expected annual revenues of approximately 250 million Yuan [US $33.3 million]. According to a press release issued by China Holdings, the project is expected to be in full production in approximately 2 years.
The Biomass Renewable Energy Project creates energy from straw. The release states that official statistic information from the Ministry of Agriculture in May 2005 shows that the annual production of straw in China is about 650 million tons, which is equal to about 13.7% of China’s 2004 coal production. According to the company, crop straw is the fourth energy resource after coal, petroleum and natural gas.
By the year 2010, China will have had discarded 350-370 million tons of straw. If used to generate electrical power, this is equivalent to a 90 million KW generator running 5000 hours per year and generating 450 billion KWH of electricity, according to the release. The company says that this will gear the development of a greener economy and a greater sustainable economic development of China.
The release says that according to China Energy Research Institute’s 2006 update report, China’s biomass energy implementation and development has reached its power capacity of 2 gigawatts (GW) in 2005. China’s biomass energy capacity will reach a total of 5 GW in 2010, and 30 GW in 2020.