China's first biomass-fired power plant, with an installed capacity of 25MW has begun commercial operations in east China's Shandong Province, state media reports.

Located in Shanxian County, the yuan 300 million ($35.7 million) plant is expected to burn up to 200,000 tonnes of cotton stalks, tree branches, orchard and forestry waste annually.

The Shanxian plant was funded by the National Bio Energy Co, a subsidiary of the State Grid Corp of China.