ADB Approves Loan for China's Rural Renewable Energy Project

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Last updated at: (Beijing Time) Tuesday, November 12, 2002

ADB Approves Loan for China's Rural Renewable Energy Project

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The Asian Development Bank (ADB) has approved a 33.1 million-US dollar loan to China for a project that integrates biomass-based renewable energy generation technology into the existing agricultural production system.

The aim of the project is to improve the environment and promote economic growth and poverty reduction in rural areas, an ADB press release said Tuesday.

Vast quantities of agricultural waste are disposed of inappropriately each year in China. This represents not only a danger to the environment but also a lost opportunity in terms of potential cheap renewable energy and nutrient resources.

Crop residues are burned in open fields and animal wastes discharged in a way that pollutes streams and groundwater. Yet these could be used to add value to integrated farming systems, reduce farm input costs, and provide opportunities for integrated pest management and organic farming techniques, the press release said.

The project is to turn the waste into renewable energy for rural households and to use the residues as organic fertilizer by using biogas digesters to produce biogas. Use of biogas reduces the dependence of farm households on coal, straw, and firewood for heating and cooking. It also promotes a better living environment, and causes less stress on forest resources.

By cutting down on waste, pollution and energy costs, these processes create a win-win situation for both the poor farm households and the environment.

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