Prospect Analysis On Biomass Briquette Industry Development Based On Supply And Demand Theory

People are recently paying more attention to biomass briquette which is becoming an important mean of relieving the energy crisis and environmental degradation because its advantages, such as easy-getting, clear, renewable and high calorific value. Based on supply and demand theory, the paper uses both qualitative and quantitative analysis methods to analyze the biomass briquette industry development in Beijing. The demand will be 131.79 million ton standard coal in 2012, the ideal supply will reach 326.31 million ton according to the paper.Biomass briquette's advantages compared with coal in economics, environment, society and policy increases its market competitiveness. However, the problems from raw materials, molding machine, product quality and concept of consumer will also block the development of biomass briquette industry. The paper proposes several government promoting suggestions to solve above-mentioned hindering factors. The government should take allowance measures and formulate raw material trade standard system during the raw material produce and supply process. It also should give individual private producers loan preferential, explore new industrial operation mode actively, establish uniform product quality testing and measurement standards and molding machine technology standards and encourage technology innovation in manufacturing process of biomass briquette. In the market process, the government may set up a coal reduction target system, carry out government procurement, farmer purchase subsidies and product propaganda to advocate scientific way of life.