The Chinese government follows the “market-based” principle, and puts “market measures” as a main tool to encourage and guide the development of biomass gasification technology. A series of fiscal incentives, such as financial assistance, tax breaks, investment subsidies, interest-free, subsidized loans etc, have also been developed and implemented, to encourage businesses to use biomass gasification technology. In addition, the Chinese Ministry of Finance, National Development and Reform Commission jointly issued “On the development of bio-energy and bio-chemical and taxation policies to support the implementation of views” in 2006 to propose tax incentives: “the state will give tax incentives to some bio-energy and bio-chemical companies who really need support to enhance the competitiveness of enterprises.” Appropriate guidance from public policy can make some companies, whose motivation is pursuing the most interest, put the biomass gasification technology as their “rational choice”.

4.4 CONCLUSIONS

4.4.1 Co-combustion

The development of renewable energy is supported strongly by the Chinese government. Biomass co-firing technology is one of the key technologies supported. But it still has not resulted in corresponding economic incentive policy for biomass co-firing. There are a large number of small and medium-sized coal fired generators forced out and closed, which instead could be combined with abundant biomass energy resources. Concerning biomass co-firing technology, there are certain project barriers: less project experience, lack of resources, lack of support system and technical system support, uncertain project factors, more difficult financing. Biomass co-firing projects need more support and motivation.

4.4.2 Gasification

Gasification is a versatile thermo-chemical conversion process which produces a gas mixture of CH4, CO, and H2, the proportions of which are determined by the use of air, oxygen or steam as the gasification medium. Biomass gasification has broad prospects in China. Biomass gasification technology will make great progress, and the heating value of gas produced will be higher with the advanced technology. Biomass gasification now used in poly-generation becomes more and more popular, and can give energy at a maximum level. Using the technology, energy utilization efficiency could be increased.