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2022

New Policy on Subsidies for Biomass Energy

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　　I. The project is primarily divided into three major areas.

　　1. Through policy incentives and support, farmers are encouraged to independently and proactively engage in the comprehensive utilization of crop residues, thereby refraining from burning them.

　　2. Promote the comprehensive utilization of crop straw, primarily through practices such as returning straw to the field (e.g., receiving additional subsidies for purchasing straw‑related agricultural machinery), supporting the production of organic fertilizer from straw, fostering the development of straw‑based feed processing industries (e.g., silage corn processing), advancing straw‑derived substrate industries (e.g., cultivating edible mushrooms using straw), and promoting energy‑conversion applications of straw (e.g., straw carbonization technologies).

　　3. Establish straw collection and storage stations, with townships, villages, enterprises, or brokers serving as the main entities.

　　II. How much can be reimbursed?

　　The central government provides subsidies of RMB 10–20 million per project county (city/district). The specific subsidy amounts and disbursement methods are determined locally—meaning that each county receives a different set of projects and subsidy levels. Subsidies are generally calculated based on the volume of straw processed, measured in tons, with individual project amounts ranging from RMB 10,000 to RMB 10 million.

　　III. Who is eligible to apply?

　　In certain major grain-producing regions and in provinces where the burning of crop residues is a particularly pressing issue, pilot programs for the comprehensive utilization of crop residues have been launched, with the scope of these pilots appropriately expanded and implemented on a county-wide basis.

　　The implementation area covers 10 provinces and autonomous regions: Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Anhui, Shandong, and Henan. Many other regions not on this list have also begun to implement the policy independently; for example, Sichuan, Hunan, Beijing, Tianjin, Chongqing, and Shanghai all have adopted it as well.

　　IV. Specific Provisions of the Policy

　　1. Subsidies for straw-handling agricultural machinery

　　Eligible recipients: farmers, as well as new agricultural business entities such as family farms, agricultural enterprises, and farmer cooperatives.

　　Purchase agricultural machinery and equipment for straw management, such as straw balers, straw choppers, straw briquetting machines, and straw pelletizers. Typically, in addition to the national subsidies for agricultural machinery purchases, municipal or county-level governments provide an extra subsidy of 30% to 50%, with the exact amount depending on the price of the equipment and calculated as a percentage of that cost.

　　2. Subsidy for the three‑stage storage and one‑step utilization of crop straw

　　The “three storage, one conversion” approach specifically refers to: silage of crop residues, semi‑dry silage of crop residues, microbial silage of crop residues, and ammoniation of crop residues.

　　Eligible recipients: farmers, as well as new agricultural business entities such as family farms, agricultural enterprises, and farmer cooperatives.

　　3. Subsidy for the Energy Utilization of Straw through Comprehensive Utilization

　　Eligible recipients: Agricultural enterprises.

　　Enterprises engaged in the production of biomass fuels, ethanol, straw-based solid fuels, and other forms of energy derived from agricultural residues—such as biomass pellet manufacturers—are eligible to apply for this type of subsidy.

　　4. Subsidy for Straw Chopping and Returning to Fields

　　Eligible recipients: farmers, as well as new agricultural business entities such as family farms, agricultural enterprises, and farmer cooperatives.

　　Promote technologies such as mechanical deep tillage with precision return to field, rapid straw decomposition, and bioreactors, and support the implementation of mechanized operations for returning corn straw to the field, including mechanical chopping, deep plowing, and harrowing.

　　5. Subsidy for the Construction of Storage and Procurement Centers

　　Eligible recipients: Township and village enterprises or brokers.

　　Eligible regions: Beijing, Shanghai, Chongqing, Shandong, Shanxi, Henan, Hebei, Jilin, Liaoning, Heilongjiang, Inner Mongolia, Jiangsu, Anhui, Sichuan, Hunan, and other areas.

　　6. Other

　　Straw polysaccharides, straw starch, papermaking, and board products can also be submitted for project applications to secure subsidy funding.

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大地生物旗下公司：

Beijing Biwode Technology Development Co., Ltd.

Dirun Energy Technology (Hubei) Co., Ltd.

Hubei Nordford Biotechnology Co., Ltd.

Wuhan Dadi Mingyao Biotechnology Co., Ltd.