On December 1, 2006. The first state designated biomass-power generating demonstration project, the Shandong Shanxian Biomass Power Plant Project developed by National Bio Energy Co., Ltd.was successfully put into operation. The deputy general manager of State Grid Corporation of China Cao Zhian attended and addressed on the ceremony. Besides, leaders from National Development and Reform Commission and governmental official from Shandong Province also attended the ceremony and sent their congratulations.

The Shandong Shanxian Biomass Power Plant Project is a biomass collection and utilization project in Shandong Province, P.R. of China. The project will generate power using a 1*25MW generator unit. The estimated annual electricity output is around 137Gwh and the total biomass consumption reaches 160,000 to 200,000 tons annually.

The Shanxian biomass power plant is the first demonstration project involving power generation using biomass in the P.R. of China. The successful operation of the demonstration project will greatly expedite the development of bio energy utilization in China. Meanwhile, the local farmers can benefit by supplying straw as fuel for the project. This will assist the local economic development, contribute to increasing farmer¡¯s income, and simultaneously achieves the green house gas reduction.

Currently, 22 projects of this kind developed by NBE had been approved by the NDRC. Besides the Shanxian Project, 14 projects are under construction. The total power generation capacity reaches 350MW.