China’s economy has experienced remarkable growth over the past several decades, but this growth has been accompanied by an increase in social and environmental challenges. Intensive agricultural farming and the expansion of livestock production in the rural areas are considered viable means for creating rural income and employment and secure a food supply. However, the rapid agricultural development poses a threat to the local environment and public health. Every year, around 728 million tons of crop residues are produced by agricultural farming and most of them are used by households as fuel or burned as waste in open fields. This is causing significant indoor and outdoor air pollution. The concentrated livestock farms in the rural areas also produce serious pollution from the inappropriate animal manure treatment. This project aims to support installation and operation of biogas facilities that use crop residues and animal wastes as the feedstock to generate biogas mainly for rural residents cooking and heating. This is an effective way to reduce pollution and provide renewable energy in rural areas.