Abstract:In this paper, the integrated environmental and economic evaluation methods of comparing biomass energy with coal project were used to explore the promoting effect on biomass energy project after environmental benefits incorporated into traditional economic evaluation. First of all, with the use of Life Cycle Assessment quantified the environmental benefits the biomass energy project had achieved; and with the concept of emissions’ environmental value, the environmental benefits could be converted into monetary value; then measured the comprehensive evaluation system which both environmental and economic benefits had been taken into account. Through case calculation, found that the biomass energy project had significant environmental benefits which realized SO2, CO, NOx and soot emission reductions 8.105×106 kg, 1.02780×106 kg, 4.10191×106 kg and 10.64277×106 kg respectively, altogether valued 10.87 million yuan, which significantly improved the values of investment profit rate, IRR and NPV.