Huaneng Group, parent of China's largest electricity producer Huaneng Power International Inc<600011><902>, settled its first biomass power plant in Changchun, Northeast China's Jilin province, with an initial investment of RMB 300 million (US$42.84 million).

The plant, which is scheduled to commence operation by August 2009, has an installed capacity of 50,000 kw, with a designed electricity-making capacity of 180 million kwh annually upon completion.

Using the crop straw as the main fuel to generate electricity, the plant would consume 200,000 tons of straw annually as to save 85,000 tons of coal every year. The heat energy produced would be capable of meeting the demand over 1.8 million square meters, which drives its energy utilization efficiency to a 90% high.

Li Hui, vice chief economist of Huaneng Jilin Power Co Ltd, said crop straw previously was used to be burnt on farmlands for fertilizer, causing resource waste and terrible air pollution. However, after the completion of the plant, farmers would earn RMB 50 million annually just by selling the straw to the plant instead of burning them and they can also get back the ashes as fertilizer.