1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The hydrogen production from biomass technology mainly involves using biomass through different pretreatment processes, and then using chemical or biological means to produce hydrogen. Compared to other hydrogen production technologies, hydrogen production from biomass can not only provide abundant hydrogen energy resources for the process of modernization, but also efficiently process various agricultural and domestic wastes, converting them into valuable resources with high added value.

Fuyu Economic Development Zone plans to construct an industry base centered on hydrogen production from biomass (domestic waste) gasification. The goal of this base is to convert wastes into high-purity hydrogen, promote the development of the clean energy industry, and achieve resource recycling and environmental protection.

1.1.2 Market prospect

(1) Project construction background

The “14^th Five-year Plan” of Jilin Province has provided a clear path and goal for the development of the hydrogen energy industry, demonstrating the province’s grand blueprint in the field of hydrogen energy. By deeply exploring the resource potential of various regions within the province and combining multiple links such as research and development, production, and application, Jilin Province is determined to become a key province in the hydrogen energy industry in the near future.

Biomass exists widely in various forms in nature, including terrestrial biomass, aquatic biomass, urban wastes, agricultural solid wastes, forestry residues, and industrial wastes, etc. Biomass resources not only come from diverse sources, but are also renewable. For example, China produces up to 700 million tons of waste straw every year. If they can be converted into oil products through appropriate technological means, it will be able to meet all domestic demand for gasoline and diesel oil. In industrial production, agricultural production, and daily life, many by-products or wastes would be generated, such as domestic wastes, most of which are organic components that can be processed to produce hydrogen or converted into other forms of fuel. The energy density of dry wastes is much higher than that of kitchen wastes, and they are not easy to degrade, posing a relatively great threat to the environment after landfilling. If they can be used as energy, it would be an excellent example of turning wastes into valuable resources. With the promotion of China’s garbage classification policy, the prospects for resource utilization such as hydrogen production from dry wastes are very broad.

In this context, the implementation of this project is of great significance for fully implementing General Secretary Xi Jinping’s important instructions on the revitalization of Northeast China, accelerating the all-round revitalization of Jilin, assisting in the construction of an ecologically strong province, and ensuring high-quality economic and social development throughout the province during the “14^th Five-year Plan” period.

(2) The necessity of project construction

Complying with relevant national and local industrial policies and development plans:

At the national level, the Outline of the 14^th Five-Year Plan for National Economic and Social Development and Vision 2035 of the People’s Republic of China clearly proposed the strategic requirements for promoting green development, and emphasized that we should strength the research and development and application of clean energy such as hydrogen energy. The Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality and the Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030 further emphasized the carbon peaking and carbon neutrality goals, and required accelerating the promotion and application of clean energy such as hydrogen energy.

At the local level, the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035) provided clear development guidance for the hydrogen energy industry. As one of the important cities in Jilin Province, Fuyu City actively responds to and promotes the development of the hydrogen energy industry. The 14^th Five-year Plan for Energy Development in Jilin Province further refined the development goals of Jilin Province in the field of hydrogen energy, providing solid policy support for the construction of Hydrogen Production from Biomass (Domestic Waste) Gasification Industry Base Project in Fuyu City.

The implementation of the project will promote the rapid development of the hydrogen energy industry in Jilin Province, form a complete industrial chain of hydrogen energy production, application, storage and transportation, equipment, and research and development, and provide strong support for the development of the hydrogen energy industry in Jilin Province and even the whole country.

The construction of the project will achieve dual benefits of resource utilization of wastes and environmental protection:

The project focuses on the resource utilization of wastes, converting abundant biomass resources such as crop wastes, forestry residues, and urban organic wastes into valuable resources. Through advanced hydrogen production from biomass gasification technology, wastes can be efficiently utilized, not only effectively reducing environmental pollution, but also realizing the resource utilization and recycling of wastes.

The hydrogen production from biomass gasification technology generates greenhouse gases such as carbon dioxide during the conversion process, which can be absorbed by the photosynthesis of biomass itself, forming a virtuous carbon cycle and demonstrating significant advantages in environmental protection and emission reduction. Meanwhile, the project has also implemented strict control and treatment of wastes such as dust and sewage generated during the production process, and ensure maximum environmental protection, having further reduced negative impacts on the environment.

The construction of the project will promote local economic development:

The construction of the project itself will bring a large amount of investment, which will directly stimulate the development of related industries such as building, materials, and equipment in the local area. A large number of human resources are required during the construction process, which provides abundant employment opportunities for local residents, including construction workers, engineers, designers, and managers, etc.

After the completion of the project, the operation and maintenance of the hydrogen equipment manufacturing industrial park also require continuous human resource investment, which will further create stable employment opportunities for the local area. Meanwhile, with the operation of the industrial park, it will generate sustained economic benefits, bring tax revenue to local government, and increase local fiscal revenue.

The construction of the project will not only drive local economic development, create employment opportunities, and increase local fiscal revenue in the short term, but also provide impetus for the sustainable development of the local economy in the long term. This will effectively promote the economic prosperity and social progress of Fuyu City and even the entire western region of Jilin.

To sum up, the construction of this project not only complies with relevant national and local industrial policies and development plans, but also demonstrates the dual benefits of resource utilization of wastes and environmental protection. Meanwhile, it can also effectively promote the development of the local economy. Therefore, it is highly necessary and urgent to construct this project.

(3) Comparative analysis of the project

For comparative analysis of the project, in addition to the significant advantages such as complying with national and local industrial policies and development plans, dual benefits of resource utilization of wastes and environmental protection, and promoting local economic development, the following points of more detailed comparative analysis are supplemented:

From the perspective of economic benefits, this project introduces advanced hydrogen production from biomass (domestic waste) gasification technology to convert biomass and domestic wastes, which were originally considered burdens, into hydrogen products with high market value. This conversion process not only maximizes the utilization of resources, but also significantly improves the economic return rate of the project. Compared with traditional fossil energy projects, this project not only significantly reduces carbon emissions in the production process, but also reduces the operating costs and enhances market competitiveness through efficient energy utilization model. In addition, the implementation of the project will also drive the rapid development of related industrial chains, including hydrogen storage, transportation, and application, forming a complete industrial ecosystem and further amplifying the economic benefits.

In terms of social benefits, the implementation of this project not only provides diversified employment opportunities for local residents, covering multiple fields from infrastructure to research and development of high-end technology, but also significantly improves the local environmental quality. By effectively reducing the emissions of harmful gases and pollutants from landfill and incineration, this project has created a fresher and healthier living environment for local residents. Meanwhile, with the steady operation of the industrial park and the continuous improvement of economic benefits, the living standards of local residents will also be significantly improved, and supporting facilities such as education, health care, and public services will also be improved, further enhancing the residents’ sense of happiness and belonging.

Through multidimensional analysis of the comprehensive economic and social benefits, the implementation of this project not only has significant short-term benefits, but also contains profound long-term value. It not only closely aligns with national and local development strategies, but also actively conforms to the trend of the Times of global energy structure optimization and green low-carbon development. By realizing the efficient resource utilization of wastes and the comprehensive extension of the industrial chain, this project will inject strong impetus into the sustained economic prosperity and comprehensive social progress of Fuyu City and even the entire western region of Jilin, becoming a new engine for regional development and a model for green transformation.

(4) Market prospect of the project

In the market of hydrogen production from wastes, solid waste treatment enterprises play a crucial role as the main raw material providers for hydrogen production from biomass gasification. These enterprises collect, classify, and process the urban solid wastes, converting them into raw materials for hydrogen production from biomass gasification, providing a stable material foundation for the entire industrial chain.

With the acceleration of the construction of waste-free cities, the solid waste treatment enterprises located in pilot cities are facing enormous transformation opportunities. In response to the national requirements for environmental protection and sustainable development, the enterprises have begun to actively explore the possibility of hydrogen production from wastes and striven to transform them into reality.

For solid waste treatment enterprises, the transition to hydrogen production from wastes means that they are no longer limited to traditional waste treatment methods, but realize the resource utilization of wastes and energy recovery through technological innovation and industrial upgrading. This not only helps reduce environmental pollution, but also brings new profit growth points for enterprises.

With the continuous maturity and application of hydrogen production from wastes technology, the cost will also gradually decrease, thus further promoting the development of the market. In the future, with the deepening of the construction of waste-free cities and policy support, the solid waste treatment enterprises are expected to occupy a more important position in the hydrogen production from wastes market and inject new vitality into the development of the entire industrial chain.

The demand side of the hydrogen production from wastes market is mainly concentrated in the transportation field (including passenger cars, commercial vehicles, ships, etc.) and the chemical field (e.g., synthetic ammonia, synthetic methanol, petroleum refining, etc.).

With the continuous progress of hydrogen energy vehicle technology, passenger cars, commercial vehicles, ships and other transportation means have become the main demand sides of hydrogen production from wastes. At present, the hydrogen production from wastes enterprises stably transport hydrogen to nearby hydrogen refueling stations through pipelines or vehicle transportation, providing convenient hydrogen refueling services for hydrogen energy vehicles. As the country with the largest number of hydrogen refueling stations in the world, China has built 351 hydrogen refueling stations and is expected to have had 1,000 by 2025. This development trend not only provides a broad market space for the hydrogen production from wastes industry, but also further promotes the sustained growth of hydrogen demand in the transportation field.

By implementing hydrogen production from biomass (domestic waste) gasification technology, Fuyu City can not only significantly improve energy utilization efficiency, convert biomass resources such as domestic wastes into clean hydrogen energy, and reduce reliance on traditional fossil fuels, but also effectively reduce environmental pollution. Because this technology generates fewer pollutants during the hydrogen production process, it can significantly reduce the emissions of atmospheric pollutants such as sulfur dioxide, nitrogen oxides, and particulate matters compared to traditional fossil fuels, thereby improving the air quality. Meanwhile, the carbon dioxide generated during hydrogen production from biomass gasification can participate in the natural carbon cycle, and achieve zero emissions, having a positive impact on mitigating the trend of global climate change.

By implementing the hydrogen production from biomass gasification project, domestic wastes are converted into biomass raw materials, which not only realizes the resource utilization of domestic wastes, but also improves the processing capacity of urban solid wastes, thereby significantly reducing the environmental burden; Moreover, this project has also greatly promoted the development of circular economy, and reduced resource wastes and improved resource utilization efficiency by promoting the recycling of resources, having injected new vitality into the sustainable development of the economy.

1.1.3 Technical analysis

Hydrogen production from biomass technology is mainly achieved through chemical and biological methods. The chemical method can be subdivided into gasification method, pyrolysis reforming method, supercritical water conversion method, and steel slag promoted steam reforming method, etc. While the biological method can be divided into hydrogen production from photo fermentation, hydrogen production from dark fermentation, and photo-dark coupling fermentation method, etc.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The project complies with relevant policy requirements such as the National 14th Five-Year Plan and 2035 Development Plan, the Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality, the Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030, the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), the 14th Five-Year Plan for Energy Development in Jilin Province, the Implementation Opinions on Supporting Green and Low Carbon Development and Promoting Carbon Peak and Carbon Neutrality, and the Implementation Plan for the “Hydrogen-powered Jilin” Action. In addition, Jilin Province has also introduced several policy measures to support the development of the hydrogen energy industry, encouraging the construction of the integrated demonstration project for renewable energy hydrogen production and green hydrogen self-consumption, and provided support in project approval, energy-saving review, and other aspects‌.

‌Guiding Opinions on Vigorously Implementing the Renewable Energy Substitution Action‌: These opinions proposed to actively and orderly develop hydrogen production from renewable energy, strengthen the construction of infrastructure such as thermal and gas pipelines and hydrogen supply networks, enhance the interconnection of pipelines, and accept more non-electric renewable energy nearby.‌

(2) Industrial advantages

Fuyu City has unique advantages in biomass resources, which provide a solid raw material foundation for the hydrogen production from biomass gasification industry base project. Specifically, the biomass resources in Fuyu City mainly include domestic wastes and agricultural wastes.

Domestic waste: With the rapid development of urbanization and population growth, the amount of domestic wastes generated in Fuyu City has been increasing year by year. These wastes contain a large number of organic matters, which, after classification and pretreatment, can become high-quality raw materials for hydrogen production from biomass gasification.

Agricultural wastes: As a major agricultural city, Fuyu City generates a huge number of agricultural wastes every year. For these wastes including crop straw, and livestock manure, etc., if not treated, they will not only cause environmental pollution, but also waste valuable resources. Through biomass gasification technology, these wastes can be converted into clean energy - hydrogen, achieving effective utilization of resources.

(3) Location advantages

Fuyu City is located in the Songnen Plain, in the north of Jilin Province and the northeast of Songyuan City, and on the wash plain of the Nenjiang River and Songhua River. Fuyu City is adjacent to Dehui City, Nong’an County, and Qian Gorlos Mongol Autonomous County across the Songhua River to the south and west. It faces Zhaoyuan County in Heilongjiang Province across the Songhua River to the north, faces Shuangcheng City in Heilongjiang Province across the Lalin River to the northeast, borders Yushu City across Huitanggou to the east, and connects with Ningjiang District in Songyuan City to the west.

Fuyu City has convenient transportation with multiple railways and highways. Three railways, including the Beijing-Harbin Railway, Harbin-Dalian High-speed Railway, and Songhuajiang-Taolaizhao Railway, pass through the territory; Four national and provincial highways, including the Beijing-Harbin Expressway, the Wuchang-Horqin Right Middle Banner Expressway under planning and construction, National Highway 102, and the Tieli-Horqin Right Middle Banner Expressway, run through the entire territory; Water transportation can reach Jilin City in the upstream and connect with Harbin City and Russia in the downstream.‌

(4) Talent advantages

Songyuan City has established 11 industrial colleges, scientific research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These cooperations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and living. It has established a “Talent Home · Project Special Class” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talents, it has attracted a large number of high-level talents, which can provide sufficient talent support for the project.‌

In terms of human resources, Fuyu City has a large number of agricultural and industrial technical talents, as well as a sound education system, which can provide sufficient technical support and talent reserves for the projects Meanwhile, Fuyu Municipal Government actively promotes various preferential policies, encourages and supports the development of enterprises, and creates a favorable investment environment for investors.

1.2 Contents and scale of project construction

It covers an area of 66,700 square meters, with an additional construction area of 53,360 square meters, including 42,360 square meters of construction area for production, 6,000 square meters of construction area for auxiliary production facilities, 1,000 square meters of construction area for utility works, and 4,000 square meters of construction area for office and living facilities. The main product produced by the project is high-purity hydrogen.

1.3 Total investment of the project and capital raising

The total investment of the project is 1,200 million yuan, including the construction investment of 900 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 950 million yuan, its profit will be 280 million yuan, its investment payback period will be 5.5 years (after the tax, including the construction period of 1 year) and its return on investment will be 24%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

Environmental Protection: The hydrogen production from biomass gasification project reduces environmental pollution caused by landfill and incineration by converting domestic wastes into hydrogen.

Resource Recycling: The hydrogen production project from domestic wastes can convert urban domestic wastes into hydrogen, achieving the resource utilization of wastes. This recycling model reduces the cost of waste treatment, improves resource utilization efficiency, and helps to build a circular economy system.

Economic benefits: After the project reaches production capacity, it effectively solves the problem of insufficient supply and high cost of large-scale hydrogen energy in the local area, and achieves the large-scale output of green hydrogen energy. In addition, the by-products such as liquid carbon dioxide and sulfur generated during the hydrogen production process also have certain economic value.

Technological innovation and demonstration effects: It has promoted the innovation and development of waste treatment and hydrogen energy production technologies. This innovative model is expected to be promoted in other cities, further advancing the development of waste treatment and hydrogen energy industries.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways can be discussed in person.

1.7 Construction site of the project

Fuyu Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Fuyu Municipal Bureau of Commerce

Address: No. 789, Chunhua Road, Fuyu City

2.2 Overview of unit

‌Fuyu Economic Development Zone‌, formerly known as Fuyu Industrial Concentration District, Fuyu Gongpengzi Industrial Concentration District, Taolaizhao Industrial Park, and Caijiagou Industrial Park, was officially integrated and promoted to become Jilin Fuyu Economic Development Zone on March 27, 2020. The development zone is located in Fuyu, Songyuan City, Jilin Province, with a planned total area of 14.78 square kilometers, including the following parts:

‌Fuyu Industrial Concentration District‌: It covers an area of 5.67 square kilometers, with the National Highway 503 as the center of its four boundaries. It extends to the edge of the built-up area of Fuyu City on the south, 200-500 meters north of north ring road on the north, the boundary between Laodangpu Village and Yaoliuhao Village in Sanchahe Town on the east, and 1,800 meters west of the Harbin-Dalian High-speed Railway on the west.

‌Fuyu Gongpengzi Industrial Concentration District‌: It covers an area of 1.38 square kilometers, and is divided into two plots. The eastern plot is centered around the National Highway 503, extending to the edge of the built-up area of Gongpengzi Town on the west, 200-350 meters south of National Highway 503 on the south, and 300-420 meters north of National Highway 503 on the north; The western plot extends to County Road 143 on the east, 570 meters south of Provincial Road 301 on the south, 200-480 meters west of County Road 143 on the west, and 1,400 meters north of Provincial Road 301 on the north.

‌Taolaizhao Industrial Park‌: It covers an area of 6.73 square kilometers, extending to Taolaizhao Town exit of Tongjiang–Sanya Highway on the west, National Highway 102 on the east, Taolaizhao-Yushu Railway on the north, and 650-1,800 meters south of Taolaizhao-Yushu Railway on the south.

‌Caijiagou Industrial Park‌: It covers an area of 1 square kilometer, extending to 600 meters east of the Beijing-Harbin Railway on the west, Huitanggou on the east, 1,200 meters north of Jidong No. 1 Road on the north, and Jidong No. 1 Road on the south.‌

2.3 Contact method

Contact person of the city (prefecture) where the project is located:

Contact unit: Songyuan Municipal Commerce Bureau Investment Attraction Service Center

Contact person: Yu Lili

Tel: + 86-18004388787