Thailand-based energy company Banpu Public Company Limited is expanding biomass co-firing to all three of its combined heat and power (CHP) plants in China, targeting an estimated reduction of approximately 148,000 tonnes of carbon dioxide emissions annually by 2027.
The expansion extends the initiative beyond the Zhengding Power Plant to the Zhouping and Luannan facilities. All three plants are targeting a biomass co-firing ratio of 10%, using locally sourced agricultural waste alongside conventional fuels.
Banpu said the initiative is intended to reduce emissions, improve fuel cost management and increase the value of its existing power generation assets under its Power+ business group.
Biomass co-firing expands beyond Zhengding plant
The Zhengding Power Plant was the first of Banpu’s Chinese facilities to implement biomass co-firing, commencing commercial operations in June 2025.
By September 2026, the project had achieved a cumulative reduction of more than 47,000 tonnes of carbon emissions, with biomass accounting for 10% of the blended fuel.
Banpu expects the Zhengding facility to achieve an annual emissions reduction of approximately 70,000 tonnes by 2027. The company also estimates that reducing conventional fuel consumption could generate annual fuel cost savings of approximately RMB 1 million.
Following the initial project’s progress, Banpu extended biomass co-firing to two additional facilities.
- Zhouping Power Plant: The facility has commenced operations with a targeted 10% biomass co-firing ratio. Banpu expects emissions reductions of approximately 10,000 tonnes by September 2026.
- Luannan Power Plant: The project remains under construction, with completion expected by the end of 2026. The company estimates an emissions reduction of approximately 34,000 tonnes by 2027.
Across the three facilities, Banpu expects the expanded programme to deliver approximately 148,000 tonnes of annual CO₂ emissions reductions by 2027.
The company announcement does not provide a detailed breakdown reconciling the combined 148,000-tonne annual target with the individual plant-level estimates, which refer to different reporting periods.
Agricultural waste supports fuel diversification
Banpu’s approach involves blending locally available biomass waste with conventional fuels used in its Chinese power plants.
The facilities supply electricity to the power grid and steam to industrial customers, while also supporting residential heating during winter. Maintaining reliable energy and heat supply is therefore a key consideration as the company introduces alternative fuels.
Using agricultural residues as a supplementary fuel can also create an additional outlet for locally available biomass resources while reducing dependence on conventional fuels.
According to Banpu CEO Sinon Vongkusolkit, the initiative is part of the company’s strategy to improve asset efficiency and manage emissions without compromising energy supply reliability.
He said: “The Biomass Co-firing project reflects Banpu’s disciplined approach to adding value to our assets. By using biomass fuel in conjunction with the main fuel in combined cycle power plants, we aim to improve operational and management efficiency to meet carbon emission requirements, while maintaining the stability and reliability of heat and electricity supply to our customers.”
Biomass initiative aligns with China’s carbon management framework
Banpu’s expansion comes amid China’s efforts to strengthen emissions management across industrial sectors.
The company highlighted China’s Carbon Emission Allowances (CEAs) trading mechanism, under which eligible businesses can trade allowances based on their emissions positions. Companies with surplus allowances may sell them to entities requiring additional allowances, creating an economic incentive for emissions management.
Banpu’s carbon asset management activities in China also include its High Efficiency, Low Emissions (HELE) operations. The company has set a target of 435,000 tonnes in CEA sales volume for 2026.
The biomass co-firing programme forms part of Banpu’s wider sustainability strategy, which includes a group-level target to reduce greenhouse gas emissions by more than 20% by 2030.
Bioenergy Business Analysis
Banpu’s expansion demonstrates how biomass co-firing can provide an incremental decarbonisation pathway for existing industrial energy infrastructure. Rather than replacing conventional fuels entirely, the company is introducing biomass as a supplementary fuel while retaining the plants’ role in supplying electricity, industrial steam and residential heat.
The use of locally sourced agricultural residues also connects power generation with agricultural waste utilisation. However, the emissions benefits will depend on feedstock availability, transportation requirements, biomass processing and the sustainability of sourcing practices.
The 10% co-firing target is an important operational parameter, but it does not automatically translate into a 10% reduction in emissions. Actual reductions depend on the energy content and lifecycle emissions of the biomass compared with the displaced conventional fuel.
The programme also highlights the growing interaction between industrial decarbonisation and carbon allowance markets in China. For Banpu, managing emissions alongside its existing CEA portfolio could provide an additional commercial incentive for improving plant efficiency.
