Deqingyuan is currently constructing an anaerobic digester to produce biogas (the Biogas Project) that will be fueled by chicken litter collected from its egg-laying operations. This project will produce biogas for power, litter residue for use as fertilizer and Certified Emission Reductions (CERs) generated by the avoided release of methane from the anaerobic digestion of the chicken litter and by the replacement of primarily coal-fired grid electricity with biogas-fueled power. The CERs will be sold to the IFC-Netherlands Carbon Facility (INCaF). DQY sells high-quality “green” eggs and has received three different Chinese certifications for the environmental attributes of its production. Deqingyuan’s chicken farm has three million chickens, which produce 220 tons of droppings and 170 tons of wastewater per day. If this waste were not treated efficiently, it would become a pollution source. However, the waste provides an opportunity to generate a significant volume of biogas-fueled power. The chicken excrement generated in the company’s chicken farm will be used as the raw material for the planned Biogas Project and would otherwise be a source of pollution. After treatment by the anaerobic digester, the residue will be used as organic fertilizer for approximately 19,200 hectares of surrounding corn farms and orchards. DQY’s chicken raising operation consumes 60,000 tons of corn annually produced on local farms. The estimated income to the local farmers is RMB 40 million. The Biogas Project’s use of an anaerobic digester to treat droppings and generate biogas will avoid the emission of two greenhouse gases: methane (CH4) and nitrous oxide (N2O). Annual biogas production will be approximately 6.5 million m3. A gas engine will convert the biogas into power, which will sell power to the local grid company. The project will generate 10 million kWh annually, which will displace predominantly coal-fired power on the grid, thereby indirectly reducing the emissions of CO2.