Investment highlights: We recently went to Beijing to attend the “Rural Biomass Application Technology Seminar and Efficient Biomass Gasification Power Generation Technology Experience Exchange Meeting” hosted by the National Renewable Energy Center and hosted by Jin Tongling and others. Leaders of relevant government departments and industry experts discussed and analyzed the biomass energy industry and Linyuan Technology's biomass gasification power generation project, a subsidiary of Jin Tongling. What are the development prospects of the biomass energy industry? Will Linyuan Technology's biomass gasification power generation project be replicated and developed on a large scale in the future? The discussions in this seminar answered these questions quite clearly. The main points of the speeches of the participants in this seminar are summarized as follows: 1. Leaders of the New Energy Department of the National Energy Administration: The development of biomass energy is closely related to the three agricultural issues. China attaches great importance to the development of renewable energy, making it clear that by 2020, non-fossil energy consumption will account for about 15% of total primary energy consumption. By 2030, the share will reach around 20%. Over the past 10 years, under the impetus of the Renewable Energy Law and a series of policy measures, China has made remarkable achievements in the development of new energy and renewable energy, and has also made great strides in biomass energy development. In 2017, China added 2.74 million kilowatts of new energy power generation, bringing the total installed capacity to 14.88 million kilowatts, an increase of 22.6% over the previous year. The annual biomass power generation capacity was 79.4 billion kilowatt-hours, an increase of 22.7% over the previous year, and continued to maintain a steady growth trend. The 19th National Congress of the Party proposed implementing a rural revitalization strategy, making solving the three agricultural problems the top priority of the whole Party's work, establishing and perfecting a green and low-carbon circular economic system, expanding the clean energy industry, promoting a revolution in energy production and consumption, building a clean, low-carbon, safe and efficient energy system, speeding up the reform of the ecological civilization system, building a beautiful China, and developing biomass energy, which is closely related to the three agricultural issues. The National Energy Administration has vigorously promoted the development of biomass energy. In recent years, it has mainly carried out the following work: First, it has formulated a 135-year plan for biomass energy development. Second, the “Guiding Opinions on Promoting the Development of Biomass Heating” was issued, and the “Guiding Opinions on Promoting the Development of Biomass Heating” were issued, and the construction of 100 urban biomass cogeneration and clean heating demonstration projects in counties was organized to guide farmers to fully shift biomass power generation to cogeneration, improve the efficiency of biomass resource utilization, actively develop biomass boiler heating, and accelerate the replacement of agricultural and forestry waste such as coal combustion and straw in counties. The third is to start the development of the industrialization of biogas. The “Guiding Opinions on Biogas Development” have been drafted, and the “County Planning Outline” and “Project Development Guidelines” have been prepared and issued. The fourth is to speed up the formulation of a standard system. Next, we will carry out key tasks in the following areas: First, do a good job in the mid-term assessment of biomass energy in the 13th Five-Year Plan. According to the mid-term evaluation of the 13th Five-Year Plan, adjustments were made to the 13th Five-Year Plan development goals. The second is the extensive development of biomass energy for heating. Implement guidance to promote the development of biomass energy heating, speed up subsidies for agricultural, forestry, and biomass pure power generation projects, actively promote biomass cogeneration in 100 towns, construction of clean heating demonstration projects in counties, and construction of advanced low-emission biomass boiler heating projects, and accelerate the replacement of coal dissipation in counties. The third is to accelerate the pace of development of the biogas industry. Fourth, continue to improve the construction of a standard system. The fifth is to promote the sustainable and healthy development of waste-to-energy generation. Among the various biomass energy application methods, biomass gasification can meet various needs such as power generation, heating, and gas supply, and is in line with the country's scattered biomass resources. It is one of the key technologies developed during the 13th Five-Year Plan. By 2020, biogas will initially form a green, low-carbon and clean industry of a certain scale, with an annual output and consumption of 8 billion dollars, and 160 biogas demonstration counties and circular agriculture demonstration counties. 2. Leaders of the National Renewable Energy Center: Gasification technology is likely to be a very viable technology for future use of straw. The Nineteenth National Congress Report proposed the construction of a modern economic system. One very important strategy is to implement a rural revitalization strategy. Well, implementing the rural revitalization strategy and developing and utilizing biomass energy will play a great role in the “three rural areas” problem of agricultural and rural farmers. In particular, the development and utilization of straw has plagued rural areas for a long time. Some have been burned directly, and some have been discarded in farmland, causing a great deal of pollution and even waste. So can biomass straw turn waste into treasure? Use it to explore a new path to solve the three agricultural problems? We have many technologies, such as liquefaction, power generation, and gasification power generation technology that we are going to discuss today. Well, judging from the maturity of technology, in the past 20 to 30 years, liquefaction has not gone through until now; that is, cellulosic, ethanol, and alcohol liquefaction. Well, direct combustion power generation is actually no different from coal-fired power generation; it also causes carbon dioxide emissions and pollution emissions. Therefore, gasification may be a very viable technology for the use of biomass energy in the future, and biostraw in particular. However, for a long time, the tar problem with gasification technology has not been solved. Some well-known research institutes in China have also developed many projects, and have even received funding from international projects. After many years of operation, it may have stagnated and been abandoned due to tar problems as well as emission issues. Well, today, using the rural biomass application technology seminar, we invited relevant leaders and experts here. We are also promoting a new technology for biomass gasification power generation. Well, development and design of this technology began in 2003. The actual construction began in 2005, trial operation in 2008, and it has been 10 years since today. After 10 years of continuous improvement, it should be said that it is a very mature technology. (Linyuan Technology's Gasification Power Generation Project) 3. Leaders of the National Renewable Energy Center: Biomass Energy Thirty-Five Plan, Four Changes How to develop biomass energy in the next step, we also need to change our thinking. Major adjustments must be made to its direction. In this direction, I think it is still often said that they should be collected nearby, processed locally, and consumed locally, rather than shipped to the city to be burned. In addition to diversified utilization, it is also necessary to serve the countryside, that is, write an article in conjunction with the rural revitalization strategy. This is the new era and new strategy I am talking about. The plan for biomass energy, the 13th Five-Year Plan, has already been released, and the 13th Five-Year Plan is the first in a series of renewable energy sources. It clearly sets out a series of goals, including biomass power generation, biofuels, and liquid fuels, to replace 1.5 million tons of renewable energy. These are all very specific goals. There are four changes in the tasks of the 13th Five-Year Plan. One is that biogas is clearly placed first in the 13th Five-Year Plan; the second is power generation, which places more emphasis on cogeneration; the third is the proposal for molded fuels, which emphasizes system construction; and fourth, the emphasis on the application of liquid fuels. 4. Mr. Sheng, Chairman of Gaoyou Linyuan Technology: The biomass gasification industry chain is very long, and multiple co-production has now achieved tar recovery, such as gas supply for process boilers, and compound fertilizer projects under construction. We are working on this kind of energy. I think biomass energy gasification is not a power generation problem, nor is it heating; its industrial chain is very long. In terms of total conditions, it is 10 MW, 15 MW, 20 MW. As far as the overall investment is concerned, with so many processes, there are other branches in it, and it is also a small project. The social benefits, which are probably well known to everyone, provide the use of straw for incineration. Reduced carbon dioxide emissions by 43,600 tons and sulfur dioxide by 420 tons. Farmers' income was increased by 16.5 million yuan, and local employment for 120 farmers was increased. After four years of cooperation, no one scattered them. The straw rate was 200 yuan per ton. I gave safety guarantees, and I was responsible for all the accidents that occurred. Second, when we don't collect straw, we all work in our factory. I guarantee that when we collect straw, we have something to do, and when we don't collect straw, we can also get a job. 5. Leaders of the Chinese Academy of Forestry Sciences: The Linyuan Science and Technology Project is a very good demonstration site. Our judgment is generally on par with that of the international community, because research in other fields is relatively late, but in the field of biomass, we have not started much. Therefore, we are still leading in some fields, including biomass materials, and manufacturing, so overall we have built up a relatively good foundation in this area. Further strengthening the deployment, we are hopeful that we will seize the high points of biomass in the future. For more research on deployment industries, it should be said that our technical base is very good. Shengzong's Gaoyou Linyuan Technology is a very good demonstration site. We visited twice in the early stages, mainly undertaking national projects, and I watched it twice. I think they did a very good job. He solved the high degree of unevenness in our raw materials, unstable sources, and complex ingredients, all of which were solved very well. The second is low-cost molding technology. This highly uniform raw material lays a good foundation for subsequent regulation and subsequent operation. If it is not the same every time, it may be necessary to stabilize production later, or if it is very reliable, it may also be difficult, so in this regard, I think the solution is very good. The third aspect is that various technologies have been developed to solve the problem of economic efficiency through carbon and fertilizer. 6. Expert: The comprehensive efficiency of the Linyuan project is a system project from beginning to end, but from a certain point of view, such as newly formed regasification, resource power generation, and gasification repower, it seems that the procedure is slightly complicated. However, in reality, it is a combo punch. Precisely because of many technical treatments in the early stages, the material is stable and the material quality is stable, especially after moisture stabilizes. We call it heat release. Biomass materials have a daily value, so their heat release is stable. The latter series of low plus effects. Therefore, the boiler efficiency has reached more than 90%, and the overall efficiency is about 25%. Everyone knows that we have power generation experts here, and the overall efficiency of power generation can reach less than 25%; generally around 20%. Why can Lin Yuan's technology achieve such high efficiency? Because of the combination of multiple punches, the company can only survive if it can make a profit in the end. 7. Leaders of the Henan Academy of Sciences: The Lin Yuan project is quite mature. It can be promoted and used on a large scale through certain channels. It is true that the Gaoyou project has been going on for so many years. It has also been continuously tracked and made continuous efforts to make it a model for our country. Up to now, our efforts have been achieved, and I am very pleased. There are six types of renewable energy defined. Biomass energy is the only renewable energy that contains carbon, and it is the only energy that can be converted into various forms of energy and chemicals. In the process of converting biomass into energy, it is also accompanied by multiple co-production, materials, and chemicals. This is also a great advantage of being able to replace petroleum grade. Therefore, our biomass energy has its unique position and role, as well as its unique advantages. Advantages of Gaoyou's technological route. The first advantage is that the scale selection is quite appropriate. At 10 megawatts, the annual amount of straw is between 60,000 and 70,000 tons. The collection radius is 10 kilometers in the south, and 78 kilometers is fine in the Central Plains. Under such a collection radius, raw materials can be collected and stability achieved. I agree very much with Sheng Zong's point of view. Whether biomass is used to generate electricity or as liquid fuel, its scale cannot be made too small. If you use a few thousand kilowatts, or even a few hundred kilowatts, the parameters will not go up, and the efficiency will definitely be very low. If you make hundreds of thousands of kilowatts, the raw materials will definitely not reach it, and the cost of collecting the raw materials is also very high. The second advantage is that the raw materials are first molded, and the molding is done in units of villages, and then collected centrally at the power plant. Single field storage is also about 10 days of storage. When it comes to molding, there are actually many advantages. One is the problem of collection, storage and transportation, and one is that it has improved quality, especially moisture. Currently, we have not added anything to our molding. If we add something else, it can also improve combustion characteristics. In particular, it can also improve combustion characteristics. In particular, reducing pollutant emissions and reducing corrosion can play a great role, so molding is an advantage of the entire technical route. The third method uses a combination of fixed steam and air gasification. There are two advantages to this approach. The first advantage is that it solves the problem of low gasification efficiency. If it can reach 79%, our standard is 70%. Second, the calorific value of gas can reach 2,000 kcal, so the parameters can be improved. If it is pure air purification, it is very difficult to achieve high parameters. The fourth advantage is the boilers and gas turbines supplied by our Jin Tongling Company. Another is the formation of a process device. Through intelligent control, the process device can operate stably around the clock for more than ten hours a day, which may be a higher number of operating hours. There is also multi-production, electricity generation, and tar, which is also a product. Now we have sold it to refineries, and compound fertilizer. Combined, it will greatly improve the overall efficiency. So I think the whole project is quite mature and can be promoted and applied on a large scale through certain channels. Finally, a few more suggestions. The first one concerns the collection of raw materials. Although Mr. Sheng introduced various models, he actually paid attention to the collection of raw materials. One is the diversity of raw materials. Apart from straw and livestock and poultry manure, there are also leftovers from forestry processing, as well as leftovers from agricultural product processing, all of which must be included in this scope. There is also the diversification of models. The collection model is to send him collection. Actually, there are more models, and there are many experiences we can learn from, so we can learn from them. The entire power plant and enterprise must establish a modern enterprise system. Biomass energy, including those that make biodiesel, have not grown bigger or stronger, and have not developed on a certain scale. I think it has a lot to do with not having established a modern enterprise system. We must use a brand new system to guarantee overall operation. Otherwise, it would be a family joke. There is also liquid fuel, which already accounts for 10% of the total weight of raw materials. How exactly is this block used? It is now sold for more than 2,000 yuan per ton to refineries. Actually, it is a very extensive method. Our future model needs to be promoted in a big model. For example, in a region not far away, in an area within 200 kilometers, we have a 10-megawatt refinery. The production of tar is huge, almost 200,000 tons. We need to consider how we handle this amount. There are many high-quality items in it. After we finish it in the future, it will also be an aspect of economic growth. On the other hand, in addition to existing technology, a slight improvement is bio-oil technology. In the future, after we expand, we can also make everything from gas fuel to liquid fuel. In this way, the entire technology route will be more comprehensive, and the products will be more diverse. 8. Experts from the Ministry of Agriculture: The country should raise biomass energy to a strategic level. In fact, in biomass gasification, in biomass gasification, the Ministry of Agriculture did a lot of things starting in the 90s, starting in Shandong. Of course, it also received support from the National Planning Commission, the Science and Technology Commission, and the State Environmental Protection Administration at the time, as well as the Provincial Energy Agency. We have carried out thousands of straw gasification projects across the country. Until now, we have been declining at a rate of about 100 every year. Currently, there are less than 700, and 50% are not being used seriously. I think our country has formulated so many plans at different stages of history, and there are so many relevant policies formulated by our various departments, so we have no shortage of plans, nor policies. What we lack is how to implement the planning goals and how to implement our policies. I review that in the 11th and 12th Five-Year Renewable Energy Development Plans, our photovoltaics and wind power have completed their tasks on a large scale, yet biomass energy has not once completed the planned goals, and it has not been completed on a large scale, seriously. This is a question-oriented one, why hasn't it been completed? Technology is a horizontal issue. I agree, but I personally think that technology is not a critical issue; I think it is a matter of strategic choice and policy orientation. Biomass energy should be raised to a strategic level, not just a technological choice. Biomass energy is not only an energy issue for the resource utilization of our agricultural and forestry waste, our ecological environment, and our three rural areas; it is a very high strategic issue. 9. Expert: One characteristic of the Lin Yuan project is the technical innovation of the project. I think one is technological innovation. Technological innovation, the first one is innovation in technology and equipment. The main core is reflected in gasification technology and supporting power generation, and it can be said that it is highly efficient in similar projects. The second innovation is integrated innovation. It is not only power generation, but also the collaboration of power generation, heat, and products, especially the development and innovation of tar systems, so this is the most prominent innovation and characteristic of this project. The third is flexibility. When I heard Mr. Sheng's introduction just now, it is possible to perform flexible operations such as ventilation according to the needs of energy and power grids. I think this is very important. The most important thing about coal power units is to carry out transformation. The project itself is flexible, so it overcomes the weaknesses of solar energy and wind energy. These are some points in technological innovation. The second innovation is very important. It is management innovation and support for raw material collection plans. This affects the most important bottleneck in the development and utilization of straw technology. I think this is also very important. If this problem cannot be solved, the next one may be 50%. This is something that deserves everyone's attention, and full attention should also be paid during promotion. The third characteristic is the economy of the project. As an enterprise, development is carried out using the project's own economy. This is the most important characteristic of its sustainability. 10. Experts: There are two suggestions that the radiation radius of biomass energy should not be overstated. The first suggestion is that publicity and promotion should meet two key points. I don't suggest a radiation radius of 150 kilometers. Never do this with biomass energy. A 50-kilometer collection radius can ruin a biomass power plant. Let's imagine that 50 kilometers is 100 miles of collection. This is a farce of heaven. Can you afford it? Therefore, the collection radius should not be so large. I suggest that in advertising, the first is miniaturization, and the second is five joint production. Miniaturization means that the collection radius is about 5 kilometers, so the feasibility is higher, so this is a dead end for biomass energy development, so miniaturization is needed. Second, we need to emphasize five cogeneration. As everyone mentioned earlier, the first comprehensive benefit is electricity, the second is gas, the third is fertilizer, the fourth is heat, and the fifth is carbon dioxide. The second is the operation management mechanism. Farmers are transporters when they deliver straw, and workers when they don't, which is great. Back then, my leader asked me to write an article about how to control straw burning in winter, but I didn't write it. People who have planted the land will know this direction, form a warm cover, and the seeds cannot germinate. We need to learn from Guizhou's three reforms. Rural resources are turned into assets, the second is to use capital as equity, and the third is to turn farmers into shareholders. If this mechanism is truly solved and farmers' biomass cooperatives are established, project management will be greatly improved. 11. Chairman Jin Tongling, Chairman Ji: Agricultural Industrial Park Planning Now Lin Yuan Technology has reached the point that everyone can see, but we have made updated arrangements with Sheng Zong and other management. Instead of simply making a biomass gasification, it is a comprehensive treatment plan for rural biomass, including straw, manure, and other needs. Let me briefly talk about the situation in the industrial park. Our industrial park is used in agriculture as an industrial park. It relies on straw and fecal matter in the countryside, as well as river sludge bordering the city, including animal and animal farming. We use concentrated heat for coupling. I only collect heat from 1200 hours to 1500 during the day. If our region needs more heat and our biological resources are limited, we can also use it. It is also entirely possible to use valley electricity for energy storage. We have thermal energy storage, and we can also store ice in summer. Refrigerators and freezers are also powerful products. These two are set up entirely depending on what local demand this county and district has. At the same time, we can designate small-scale sewage treatment in our industrial park, or it can be carried out within this park. At the same time, 50 tons to 300 tons of garbage can be treated. The principles of garbage disposal are gasified at high temperature, and combustible gas is simultaneously generated. The combustible gas is mixed into our straw gasification boiler. So above, we use it as a resource, but each region and county can also choose according to its own actual situation. Well, our scale design determines the size of the park according to your total amount of straw and total farming. In this context, is this county mainly raising pigs or raising cattle? 10,000 cows can generate 5MW of electricity. After drying and wet separation, the fuel value is 3,500 kcal. Within this range, we choose our breeding range. This is our introduction to resources. In the middle is our process, and the core process is gasification. We have also done this kind of analysis, analysis of the future economic value of our biogas power generation, but currently the main focus is on gasification. Through the gasification of straw and animal dung, the final distribution of total energy occurs. I hope everyone will pay attention to what other problems are there with the use of our straw? Actually, I think there are still issues with the government's efforts and government policy support. For example, when we signed a contract with our county to handle 80 megawatts, now 20,000 tons, and some counties and districts have 200 acres of land. What I helped you dispose of was 800,000 tons of straw. Currently, the previous phase of the project required 20 megawatts, which means only 160,000 tons. Under the coordination and management of our government, we are still unable to receive it through our efforts. Can our industrial park continue to work? I promised to buy 50% of the straw and pay for it, but in the end, it had to be built in three phases. The first phase still can't generate electricity. Where is the responsibility? It's not that the government is blaming today; the government must come up with effective measures to ensure that biomass companies serve energy resources. Some leaders also talked about it, but there was no focus on it. I think the focus, technology, industrialization, and capital have already been resolved; what is missing next? There is no shortage of central government policies at the national level, and we don't want more resources from the country. Through the reflection of our profitability, we hope we can reduce prices and subsidies, which shows that my ability is higher. I hope for a decline of 7 gross 5 percent, but only if it is profit. When I drop, a group of competitors retreat, and I am on the table. This is my theory, which shows that my technical ability is strong. At the same time, I mentioned processes. Many of our processes are mature. We use high-efficiency gasifier technology. After 12 years of hard work, we also believe that gasification is guaranteed through research before mergers and acquisitions. After our power generation project was completed, we successfully entered industrialization, and we stepped on to reality was 1003 megawatts. Normal power generation continued for at least a few months. Well, in this process, our kind of equipment, and later our power generation equipment, not only through the application of biomass power generation, but also through the application of our new energy sources, use of solar energy, waste heat recovery, and waste electricity recovery, all of which indicate that our generators can be applied when the technology is satisfied. So as we see below, we use valley electricity for heat storage and ice energy storage. This technology is mature. Our agriculture needs an industrial base, our parks need high-pressure air, and we need supporting resources. Our company, Jin Tongling, has air compressor technology, as well as mature technology. There are no issues with our process routes. Simply put, what else do we want to do later? After passing the acceptance of this project, I hope that in the next three to five years, as a listed company, our company will plan this mature product well and establish 20-30 self-operated agricultural and environmental protection industrial parks through promotion and publicity. Set up about 100 demonstration sites for rural environmental protection industrial parks, and build 60-100 collection and molding materials plants with a collection standard of 50,000 tons. This is what we need to do in the future. The second nationwide promotion is to train equipment maintenance, maintenance, and operation personnel to ensure the normal operation of the equipment and ensure the power generation capacity connected to the grid. Third, in terms of equipment technology, we hope to improve the competitiveness of equipment and increase profits. Jin Tongling is currently developing high-efficiency gas turbines. If the equipment is successful in two years, our comprehensive power generation efficiency will increase by 10% from the current level. In other words, the efficiency of the new energy engine 35 is already very high in terms of size, but if we use 3×2 megawatts, it will increase to 50%. Fourth, we take advantage of the current poor practicality of internal combustion engines. We have established a 500KW-2000KW small internal combustion engine research and development base in Gaoyou. We currently have 1,500 hours of operation. We hope that in the process of miniaturization of our biomass power generation, internal combustion engines will act as the main equipment. Hoping we can see the emergence of our safe small internal combustion engines in two years, we are investing. The last one is our plan, which everyone has been talking about at meetings. Our next step is to purify it with existing technology during the biomass gasification generation process. In the absence of power generation conditions, we expect it to provide combustible gas with a higher fuel value from natural gas, or one that can be integrated into the pipeline network, to provide combustible gas with a high fuel value. It can be mentioned above 5,000 kcal. This is something we have developed and developed, making our biomass development more promising. Finally, let everyone know more about the role of our comprehensive biomass utilization project in precise poverty alleviation. How much can we contribute to rural areas? In counties and districts with poverty alleviation projects, there are several ways to share poverty alleviation. First, our project investment is 600 to 800 million dollars, which can result in a large amount of government revenue. It is estimated that 50 million or more is this account. One is value-added tax on straw ash and tar. This is something that cannot be escaped. As a listed company, everyone says it needs to be regulated. Currently, Gaoyou is not a private enterprise or family business; it is a subsidiary controlled by a listed company. All tar and straw must realize value, so in this amount, no matter how much money we have, how much value-added tax there is. Second, the project can drive local employment. We can provide employment opportunities for more than 300 migrant workers and children of migrant workers, and provide them with social security. The so-called social security is employment in a subsidiary of a listed company. With social insurance and pension insurance, you are a migrant worker. This is our dream, and it is also a reality that Xi greatly hopes to see. This is a corporate responsibility. Our per capita insurance income is 50,000 yuan per capita. Today, when migrant workers use it, if they don't spend 2,3,000 yuan, they won't be able to keep him. If there is no insurance for 35% of the total wage, there will be even bigger problems. As soon as the company reports, there will be a bigger problem, so the per capita expenditure is 50,000 yuan a year for 300 people. Everyone's income is guaranteed an annual income of 15 million yuan. The third is the collection of straw. With 600,000 tons of forestry waste and livestock and poultry manure, we can obtain an economic benefit of 120 million yuan, so this is also fully measurable, that is, 120 million yuan in revenue, an increase brought to farmers. At the same time, in the case of solving other expenses, in the case of solving pollution, the income of local farmers was also solved. Fourth, this project has spurred local farmers to start businesses for the second time. Supporting services such as the collection, packaging, and transportation of straw, livestock and poultry manure can generate about 40 million dollars in revenue for them. We have collected it. He has a fee, and packaging also costs. Transportation requires a transport fleet. If you have the tools, I will have employment opportunities for you. 40 million is also algorithmic. Fifth, according to the industrial poverty alleviation strategy formulated by the state, our project can also use the form of collective ownership of land in villages and townships to fix long-term profit dividends. Land generally accounts for no more than 10% of the total investment. Based on 10% of the annual distributable profit, the income is about 12 million yuan, thus guaranteeing the long-term fixed benefits of local farmers