To support China’s transition toward a green and low-carbon energy system, Zhengding became the Company’s first power plant to pilot biomass co-firing with coal. This initiative aims to lower GHG emissions intensity while generating additional revenue through the sale of GHG emission allowances. The trial demonstrated that biomass and coal can be co-fired in a stable and efficient manner without adverse impacts on plant operations.
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Building on these results, Zhengding plans to gradually increase the biomass blending ratio from 2025 onward, with a target of achieving a 10% biomass mix by 2026. The project requires a one-time capital investment of USD 552,000 and annual operating expenses of USD 60,000. Once fully implemented, the initiative is expected to generate approximately USD 953,000 per year from the sale of GHG emission allowances. Beyond emissions reduction and revenue enhancement, biomass co-firing contributes to improved agricultural waste management, more efficient resource utilization, increased income for local farmers, and the development of related value chains, while supporting job creation and local economic growth.