China’s Industrial Transformation in the

Bioenergy Sector and the Role of Academia

Hans Hellsmark

hans.hellsmark@sp.se

SP Technical Research Institute of Sweden

Scale of the problem

!

• 70 % percent

dependency!

• Domestic fossil

resources depleted

by 2050!

• 3-4 times the energy

intensity as Germany

• Changing income

structure

2012 1900

Growth based on

fossil fuels

=>Growth based on cheap labor and fossil

resources is soon impossible!

Innovation

Elite Universities and Institutes are at the core of the Government’s

Innovation Strategy ...

• Research, Education

• Advisory and debate (policy, strategy, laws and regulations)

• Networks

• Infrastructure

• Entrepreneurs

• …

Question: What are the strengths and weaknesses of the Chinese

bioenergy development and the role of academics?

Outline

• Historic biomass development in China (5)

• The role of academia (2)

• Strengths (1)

• Weaknesses (1)

• What can be done to speed up the development (3)

Historic development of Bioenergy in China (1)

• Global Oil and Energy Crisis (1973 & 1979) – China independent of

oil

• 1979 – Biomass entered the strategic agenda of government

• 6th -9th Five year plans (1981-2000):

– Focus on rural bioenergy

– Tree plantation for firewood

– Simple household digesters

– Fuel saving stoves

Bioenergy: a low tech. and rural source of energy

No (or limited) role of academia

Historic development of Bioenergy in China (2)

1990’s:

– Strong economic development

– Rural areas gradually modernized

– New family structures

– Shift towards “modern” energy supplies (coal, natural gas, DME,

LPG and Electricity)

– China transformed from oil exporter to major importer

Concerns about energy security and investments in renewable

energy

Bioenergy – enter the agenda of the Elite Universities and

Institutes

Historic development of Bioenergy in China (3)

2000’s:

- Fuel ethanol from old grain

- Biodiesel from waste oil

- CHP from straw

• Limited role of academia – mostly private enterprises and western

technology

=>Rapid development, but limited potential :

• the use of grain for fuel is banned since 2006

• potential of waste oil nearly depleted

• localized straw markets – difficult to access and little use of waste heat

However, many new, large scale and innovative demonstration

plants - increasing importance of academia

Networkers and translators: translate technical opportunities to local context.

Entrepreneurs: patent, license and partners in joint ventures

Infrastructure developers: construct pilot plants and large scale demonstrations

Project Managers: Everything from environmental permits to on-site

construction

Educators: train operators, students get practical experience

Researchers: test new concepts and first hand access to data at a large scale

=>rapid knowledge development, different routs are tested, rejected and new

opportunities can emerge - drives innovation!

The role of academia in demonstrations and

commercial installations (1)

The role of academia in demonstrations and

commercial installations (2)

Advisors and debaters:

Intense communication with policymakers and investors about technical

opportunities and appropriate measures

=>Government is well equipped to pursue technology specific policies

to promote the various trajectories developed

Conclusion: Strengths

• Many experiments and demonstration plants for all types of

conversion technologies

• Strong universities & institutes that transfer knowledge and

technology to industry

• Technology specific polices and government owned firms that

push technology development and absorb “off-take” risk

=>many advanced demonstration, but relatively small overall

implementation

Tentative Conclusions: Weaknesses

a) The development of biomass markets

• well defined biomass streams

• from local to national trade

innovative and effective combinations

b) New organizational practice and mindset

• Waste as a resource and not only a problem

• Lack of actors and networks?

c) New and effective policies

• Incentives for effective waste management

• Market based incentives for lignocellulose type fuels and

chemicals

WHAT CAN WE DO TO EXCEL

THE DEVELOPMENT OF

SUSTAINABLE BIOMASS

RESOURCES?

Current mode …

Firms

Policy

Firms

Policy

• Weak links, based on the interest of a few individuals

• Lack of Innovation and Policy research

• Lack of funding for conducting research together

Strategic Trans-Disciplinary and Bi-lateral Research Center:

facilitating mutual learning and enhanced opportunities for

research, business and policy

Firms

Policy

Firms

Policy

Research:

- Strategy and Policy

- Technical demonstrations

Project management:

- Facilitate projects of

mutual interest

- Utilization of results

Funding:

- Effective use of bi-lateral

agreements

Thank you!

• Significant industrial experience, strong

universities and innovative policy

opportunities

• Many innovative demonstrations of

different degrees of complexity

• Increasing biomass resources

(agricultural, cities and industry parks)

and huge opportunities for integrated

solutions

=>Small overall implementation, but large

growth potential.

• Long history and significant policy

experience

• Effective markets and utilization of

waste residues (forest, agriculture, and

cities)

• Innovative demonstrations for 2nd gen.

fuels, chemicals and other advanced

applications of biomass

=>Relatively large utilization of bioenergy

and good position to realize a fossil free

transportation sector.

We can learn by working together!