Power generation by using biomass gas from coal, peat,rice husk, wood chips ,saw dust and crop stalks can not only save expenditure in electricity fee in the production cost of rice mills and timber processing mills, but also can bring about benefits by means of selling surplus electric power to the power grid. As the higher conversion efficiency of the equipment, by taking rice husk as an example, every kwh power generation consumes only 1.6~1.8kg rice husk. If using wood dust or crop stalks as fuel, the unit consumption of the fuel will be lower. Water used for gas cleaning and cooling can be used in a circulating way after it is treated through water treatment facilities such as a sediment pond without environmental pollution and with need only some amount of making-up water. The water pond for each unit of 200kw generator covers only an area of about 50m2 .The engines and generator, electrical equipment should be arranged indoor, but the other equipment can be arranged outdoor. The area of building for each 200kw generator unit is approximately 40~50m2. The rate of self-use power for the complete set of equipment is very low only 5~8% of the generated power. Therefore, such a project is an ideal one with significant benefits for the area where there is a lot of discarded biomass resources but is short of electric power supply or with higher electricity fee. In general, the investment for major equipment can be recovered from power generation benefits within first tow years. The equipment can be safely and reliably operated with operational technology. It is easy to be mastered by workers and the maintenance and repair work of the equipment are similar as for ordinary diesel generators.