China is aiming to produce 4 million tons of ethanol by 2020, doubling output from the current level, even as it keeps tight control over the use of food grains to make the biofuel, a government plan showed on Monday [5 December 2016]. The world’s largest energy consumer plans to raise the non-fossil fuel portion of primary energy consumption to 15 percent by 2020 from 12 percent at present…Full Article: The Global Times Dec 2016

Key Point

  • In 2016, China produced on average 2.1 million MTs of ethanol annually and had a biomass energy capacity of 10 gigawatts (GW), which was below the target goal of 13 GB by 2015.

ChinaAg Comments

  • By 2020, China hopes to ensure that 85% of crop stalks are reused, 80% of plastic agricultural film and forestry waste materials are recycled, and 75% of animal waste (e.g. livestock and poultry) undergoes reprocessing.
  • In October 2016, a Beijing publication stated that the average corn price paid by ethanol companies in Jilin Province was CNY 1,450 (US$217.44) per MT. At the same time, the purchase price paid by ethanol companies in Kaiyuan, Liaoning Province, was CNY 1,570 (~US$233) per MT.
  • In April 2016, a Chinese-financed in sugar mill began operation in Preah Vihear Province, northern Cambodia. In addition to the sugar mill, according to Cambodia’s Industry Minister, factories will be built in 2017 that will eventually produce 50,000 MTs of ethanol (for export to China) and 100,000 MTs of organic fertilizers.
  • In 2015, a Shandong Qiquan biomass power plant located outside Jinan collected 131,000 MTs of straw (e.g. soybean stubble, wheat stubble, etc.)
  • In July 2015, DuPont and Jilin Province New Tianlong Industry signed an agreement to build China’s largest cellulosic ethanol manufacturing plant, which is a type of biofuel (i.e. not a fossil fuel like coal, petroleum and natural gas) that is produced from wood, grasses, and other plants such as corn.
  • In December 2014, a local official from Heilongjiang was seeking to process 20,000 MTs of corn stalk into 10,000 MTs of industrial oil and 5,000 MTs of biochar (a type of “green” charcoal). In general, stalks can be processed into eco-fuel (e.g. biochar) or used to produce electricity. The burning of corn stalks typically produces black smoke, smog, and haze.
  • In June 2014, Shanghai Zhongfu Group (via Kimberley Agricultural Investments) bought a sugar mill in Kununurra, Western Australia. It was noted that even though sugar production was the long term goal of the Ord irrigation scheme, the mill may be used to process sorghum into ethanol.

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