Disused banknotes generate electricity in Henan  

洛阳一企业用残损纸币发电 1吨可发电660度

(ECNS) -- Discarded renminbi banknotes are being used to generate biomass power for the first time in China.

Incinerating one ton of dilapidated notes can generate 660 kilowatt-hours of electricity, according to a source at the People's Bank of China's Luoyang Central Branch.

For several decades, damaged currency withdrawn from circulation was burned or used for paper-making in China, but discarded notes have been used to generate biomass power in Luoyang city, Henan province, since April 2014.

According to the bank branch, 1.32 million kilowatt-hours of power can be generated each year by burning damaged notes. When compared to thermal power units, the method substitutes for the burning of 4,000 tons of coal.

Luoyang has been chosen as a location for the pilot project based on factors such as transportation, location, technology and security.

The new power generation method will expand nationwide in the future, authorities said.