Publications·June 26, 2023
This research and survey on scattered coal reduction was a collaborative endeavor launched by the Society of Entrepreneurs and Ecology (SEE) in 2022, in partnership with Energy Foundation China. SEE joined forces with four NGO partners to spearhead initiatives related to scattered coal reduction across residential, industrial, and agricultural sectors.
Through field visits, the project researchers elucidated the current state and challenges of scattered coal management in key areas of air pollution. They found that initial achievements have been made in industrial scattered coal reduction. However, there are significant regional differences in technical solutions for replacing scattered coal in residential areas, and market-oriented solutions are still lacking. In the agricultural sector, there is still room for improvement and policy support is necessary.
The SEE researchers believe that the collaborative approach they adopted with local NGO partners helped identify and verify problems better at the regional level. They hope their work provides local case studies and other scientific evidence for a future national policy system addressing the control of scattered coal comprehensively. They also hope their findings can facilitate the shift of heating in rural areas toward cleaner and lower carbon alternatives.
This Chinese-language report synthesizes a year-long investigation (launched Aug 2022) into the replacement of “scattered coal” (民用/农业/小工商业分散用煤) across six provinces—Shandong, Jiangsu, Anhui, Henan, Shanxi, Shaanxi—and how those replacements can deliver co-benefits for air quality (PM₂.₅, SO₂, NOₓ, VOCs) and carbon. Led by the SEE Foundation with Energy Foundation China support and four regional partners, the study combines policy analysis, right-to-information requests, field surveys, and an innovative pairing of satellite remote sensing with UAV (drone) inspections to locate and verify remaining industrial scattered-coal use. The central message: industrial scattered coal has largely been cleaned up in the focus areas, but rural residential and agricultural uses remain uneven and policy-sensitive, and getting the last mile right requires stronger quality control, O&M, and locally appropriate clean-heating portfolios.
Methods & geographic focus
The team reviewed local policies and implementation records, ran in-situ interviews and questionnaires with households, farmers and small firms, and—critically—tested a “satellite AQ remote sensing + drone survey” workflow to rapidly screen for probable industrial coal use and then confirm sources on the ground (cross-referenced with permits). This proved effective for high-efficiency targeting of outliers and could help regulators do faster, cheaper compliance sweeps over large areas.
What they found: sector-by-sector
1) Industrial scattered coal — mostly eliminated, but watch the fringes
Fieldwork in Jiangsu, Shandong, Anhui, Henan did not detect significant ongoing industrial scattered-coal burning at legitimate facilities. Coal-washing plants surveyed supply large users (power, steel) under fixed contracts rather than retailing to small boilers. However, the team still encountered a few “scattered–dirty–noncompliant” (散乱污) micro ironmakers continuing to burn scattered coal, and some small plants with “biomass replacement” boilers exceeding PM limits—reminders that edge cases and fuel-switch rebound need attention.
2) Rural residential heating — progress with big regional differences
Rural clean-heating trajectories differ sharply by policy, income, technology maturity, baseline infrastructure, and geography. In northern Jiangsu, scattered coal use is scarce (few sales channels; higher prices), while in southern Shandong (e.g., Rizhao) winter coal use remains common. Plains villages with denser settlement show higher centralized heating penetration; mountain villages are more dispersed and show a patchwork of clean solutions—and more persistence of traditional biomass and coal. The report documents working examples beyond “coal-to-gas/electric”:
Solar-thermal space heating (e.g., Henan Heze–Juancheng Yellow River relocation area);
Geothermal (e.g., Dongying new rural estates; Xi’an Lintong tapping mid-deep resources);
Industrial waste-heat district heating (e.g., Linfen’s Xiangfen town trial);
Multi-energy hybrids (e.g., Baoji Linyou: solar thermal + biomass pellets).
These cases illustrate that fit-for-place portfolios can displace coal where pipelines are limited and incomes modest.
But quality and reliability are pain points.
Equipment quality variance: centralized procurement sometimes reserves quotas for SMEs; solar-thermal units—outside the CCC (China Compulsory Certification) catalogue—showed higher failure/underperformance rates than air-conditioner heat pumps or gas boilers, which face tighter certification and larger, more capable manufacturers. In parts of Shanxi, “trial-and-error” purchases left residents with mismatched devices and poor experience.
Fuel quality: random tests of 12 household coal samples in Shandong found all failed the GB34169–2017 household-coal specification (11 samples had excess volatile matter). The authors urge tighter market supervision, more frequent spot checks, and promotion of efficient stoves to reduce emissions from incomplete combustion.
Industrial waste-heat stability: some heat sources shut or curtail during environmental rectification or heavy-pollution episode responses, interrupting community heat and forcing households to maintain backup systems—raising costs and eroding trust.
Construction & O&M: rushed retrofits led to poor workmanship and perfunctory acceptance in some projects; rooftop-PV leasing did not translate into household electrified heating (“发电自用, 余电上网”) in some northern Jiangsu/Anhui sites due to weak integration with demand. The report calls for tighter QA/QC, robust acceptance, and funded long-term O&M.
3) Agriculture — overlooked but promising
A multi-city survey in Henan (5 cities, 26 sites) shows 76.92% of agricultural operators now using electricity, gas, or biomass pellets, but 23.08% still burn scattered coal, concentrated in edible-mushroom sterilization and brooding (duck/chicken/lamb)—processes with high thermal loads and tight cost margins. Cost is the top barrier; adopters weigh not only cost but convenience, cleanliness, safety. Policy inconsistency creates interprovincial inequities: Henan issued edible-mushroom “double-retrofit” support, but Hebei, Shaanxi, Shanxi, Shandong reportedly did not, despite national autumn–winter control guidance—raising fairness and leakage concerns. The authors argue agricultural clean substitution is undervalued, lacks national statistics, dedicated policy and incentives, and could also soak up local rooftop-PV power in rural grids.
What to do next — practical recommendations
Plan portfolios by settlement pattern.
Near heat sources (CHP, industrial parks): pursue central heating (incl. industrial waste-heat) with strong O&M contracts.
In dispersed villages: favor distributed clean heating (heat pumps, solar thermal, hybrid solar-thermal+biomass) sized to dwelling type and income.
Lean into renewables, locally.
Promote rooftop PV, solar-thermal, air-source heat pumps, and clean biomass where proven; design for local consumption to ease grid bottlenecks and cut household energy cost. Documented pilots (e.g., Ruicheng “PV+storage+direct-flexible”, Hebi biomass heating) provide replicable templates.
Strengthen market governance and aftercare.
Tighten coal-quality supervision (raise inspection frequency; enforce GB34169–2017).
Require clear acceptance criteria, warranty/O&M provisions, and post-retrofit audits for clean-heating projects; create accountability for shoddy work.
Standardize procurement (tech specs, minimum certifications) to curb low-quality equipment.
Stabilize industrial waste-heat heating.
Bind heat-supply SLAs to environmental compliance plans so rectifications don’t strand villages; require backup heat or hybridized systems to maintain service during emergency cuts.
Elevate agricultural coal substitution.
Recognize mushroom sterilization & brooding as high-impact niches; design targeted subsidies/credit, publish national statistics, and scale clean steam/thermal solutions (e-boilers, biomass, heat pumps). Harmonize policies across provinces to prevent policy arbitrage.
Keep the “find & fix” tech stack.
Institutionalize the satellite + UAV + permit-data triage for industrial outlier detection; link to open reporting so citizens and NGOs can assist with evidence and feedback.
Mobilize operators and civil society.
Support rural clean-energy service companies as long-term operators (investment + maintenance); empower local environmental NGOs as the bridge between government and villagers for policy feedback and uptake.
Why this matters
China’s scattered-coal transition has moved the needle for air quality, yet residential and agricultural end-uses still determine whether wintertime PM₂.₅ episodes are mild or severe—and whether low-income rural households trust and stick with clean options. The report shows that technology is not the only bottleneck: equipment quality, fuel quality, operations, and fair, consistent policy are equally decisive. A portfolio approach—matching local conditions with mixed heating options and solid aftercare—delivers durable pollution and carbon gains while supporting rural revitalization.
Keywords
Scattered coal; clean heating; rural energy transition; industrial waste-heat; solar thermal; heat pumps; biomass pellets; coal quality (GB34169–2017); satellite + UAV enforcement; household equipment QA/QC; agricultural mushrooms sterilization; brooding heat; O&M and acceptance; rural PV self-consumption; co-benefits (air + carbon).