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Home » BioRefineries, Business News/Analysis, China, Field/Orchard Crops

Bio-dynamic Group Announces Fuel Ethanol Production Plan

Submitted by on January 31, 2011 – 9:14 amNo Comment

(PR Log)  According to Industrial Biotechnologies China News,unlike most producers of cellulosic-based ethanol adopting straw as raw material, the joint venture will choose kenaf as raw material with several obvious strengths.

On January 6, 2011, Bio-Dynamic Group Limited (or Bio-Dynamic Group) announced that the company and Shanghai Zhongwei Biochemistry Co., Ltd. (or Shanghai Zhongwei) entered into a non legally-binding framework agreement for establishing a joint venture engaged in the production and sales of cellulosic-based fuel ethanol made from kenaf.

According with the framework agreement, the production facility with a production capacity of over 10,000t/a will be launched in 2011 upon completion of construction; the capacity will be expanded to 100,000t/a to 200,000t/a during 2012 and 2013 upon completion of construction. The registered capital of the joint venture will be about USD6,002,800 (equivalent to RMB40,000,000). Shanghai Zhongwei and Bio-dynamic Group will contribute certain intangible assets (including technology and expertise) into the joint venture on a 75:25 basis as registered capital of the joint venture.

According to an employee of Bio-Dynamic Group, Miss Chan, Bio-Dynamic Group will provide needed facilities for fuel ethanol production as the company is already an edible-ethanol producer in Harbin City, Heilongjiang Province; meanwhile, Shanghai Zhongwei will offer the core technology of fuel ethanol production from kenaf. Currently, R&D stage has been completed but the project is still pending industrialization. Thus, whether the joint venture will be set is still up in the air.

According to Industrial Biotechnologies China News February 2011 issue, published by CCM International Ltd., unlike most producers of cellulosic-based ethanol adopting straw as raw material, the joint venture will choose kenaf as raw material with several obvious strengths.

On one hand, the arable area has been shrinking in China owing to environmental damages or land desertification; however, kenaf with high adaptability can grow on land not so fertile, highly guaranteeing the stable supply. On the other hand, the kenaf planting can also help better the soil conditions, facilitating environmental protection in the long run. Furthermore, the adoption of kenaf totally complies with the “non-grain ethanol” governmental policy promoted nationwide since 2007. If the quality can meet the national standards, the company would have no big concern about the sales, according to Miss Chan, anyway, the domestic demand for fuel ethanol is tremendous in the future.   READ MORE

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