Phoenix Bio Energy is a sustainable energy company in China that will produce bio energy from switchgrass on marginal lands. Switchgrass is an energy crop that performs well under severe circumstances. It is drought and flood resistant and grows on sandy (semi-desert) soils. China has large amounts of (semi) desert and eroded lands and is in need of more energy resources. Phoenix Bio Energy believes that large scale switchgrass growing can solve many of the ecological and environmental problems in China. Furthermore, the establishment of a switchgrass farm creates jobs and income for farmers that currently have an income below the international poverty treshold.
Demand for sustainable energy
China’s government has expressed the necessity to increase the level of alternative and sustainable energy into the current energy mix. In its search for different types of sustainable energy, the Chinese government is changing its focus from wind energy (previously this had first priority) to other types. One of the identified possibilities is to use biomass as a source material for bio energy. However, until now, most of the crops used for the production of biomass have the disadvantage of being part of the food chain (or at least competing with food crops for their land use). This could lead to higher market prices for food and is especially inconvenient for developing countries. Therefore, China banned the use of food crops for energy production. Also the environmental price paid (CO2 emission) for converting forest land or prairies for the cultivation of bio-energy crops is often higher than the amount of CO2 saved by using the bio energy produced. Switchgrass is a good alternative since it grows on marginal, degraded land.
Switchgrass
Switchgrass is a good feedstock for energy production. It is harvested every year and then pelletized (i.e. the grass is cut and pressed into tiny pellets/granules). These pellets have almost the same energy value as the low-value coal used mainly in China and can be the feedstock for heating boilers or electricity generation in a coal plant or a dedicated biomass plant. Switchgrass pellets have a carbon neutral lifecycle and emit less local polluters than coal.
Desertification
Desertification is a serious issue in China. According to numbers provided by the government, China has almost 2 Mn. sq km of desert land. Due to deforestation, strong winds, overgrazing and poor agricultural management, large parts of the province of Inner Mongolia have eroded over the last 40 years. Whereas savannah like grasslands and forests were the natural vegetation of the province, nowadays large parts of the area consist of degraded sandy soils, or even desert soils. For the area of Chifeng, where a part of the Phoenix plantations are located, this accounts for more than 25% of the total surface.
The company
Phoenix is one of the first companies that has successfully grown switchgrass on marginal lands in China. In 2008, the company has set up the largest switchgrass test plantation in China: six different cultivars of switchgrass were tested on three different soil types of in total 30 hectare in the provinces of Inner Mongolia and Shaanxi. The tests were successful and subsequently a mix of cultivars has been selected for scale-up to larger production in 2010. Phoenix has identified locations and options to rent for scale up in Inner Mongolia and in Shaanxi Province. Furthermore, Phoenix has partnered with the global leader in switchgrass growing, with over 20 years of experience.
We think Phoenix Bio Energy is an important agri-energy innovation and therefore an interesting opportunity. Phoenix is truly sustainable and has many beneficial effects to the community: conversion of marginal lands into valuable land, preventing erosion, providing farmers with additional income, providing a clean and carbon neutral fuel. A successful scale up of Phoenix would be a breakthrough for many of China’s rural problems.
For more information please contact: secretary@spring-associates.com