Crop straw is of great interest economically in Anhui Province due to its potential value as biological resources, industrial raw material, and alternative fuel. In 2008, over 40 million tons of crop straw was produced in Anhui province, 89% of which was from Jianghuai and Huaibei regions with rice, wheat and rape as the major species. So far, crop straw has been used as fertilizer supplement, culture media for edible fungi, and livestock feed in Anhui province. Crop straw is also the fourth largest energy resource on the Earth. Potential for such resource has yet to be fully explored due to lack of research funding, logistic transportation and technology. Enormous challenges remain ahead if crop straw is to be used as an alternative fuel for energy production.