China’s Shift to Cleaner Energy Drives Huge Ethanol Demand
by Leah Marie Angelou (Small Cap Network) … China is at a crossroad as it shifts to cleaner and renewable energy sources. Can the country keep up with its environmental pledge? — In September 2017, the government rolled out a new nationwide ethanol mandate (NEA 2017), which requires the use of E10 fuel, a type of gasoline that contains 10 percent ethanol, across China. Eleven provinces have been tapped to participate in the trial phase before its nationwide implementation by 2020.
China is the biggest motor vehicle market in the world, and as expected, when the demand increases, the supply tends to diminish. This development attracts ethanol suppliers from all over the world to make an offer to China to partner them in this endeavor.
Corn is the main ingredient in ethanol and experts are projecting China will soon import more corn or ethanol to meet the national demand.
It is important to note that the country is no strange to producing ethanol. In 2016, China was the world’s fourth-largest ethanol producing nation in the world. But because of its massive population and mandated NEA 2017, a shortage will likely happen sooner or later. This also means that the country needs to produce 4 billion gallons of ethanol in order to meet the demand. There are two ways China can deal with this: increase local corn production or partner with ag tech companies.
One of the companies that are poised to assist China is Greenbelt Resources Corporation(OTCMKTS:GRCO). Greenbelt is a producer of sustainable energy production systems. It has developed its own technology that can convert biomass/waste to ethanol. CEO Darren Eng is not wasting time in offering China what his company can do.
“The demand for biofuels in China is growing rapidly as are Chinese concerns for impacts on the environment. Our technology can help the right parties solve two immediate problems: the need for bioethanol as biofuel and the food waste issue,” says Mr. Eng who was recently an invited guest to present the Greenbelt model to local governments and developers in Beijing, Tianjin, Guangdong Province, Foshan, Guangzhou, and Zhuhai.
GRCO is not new in collaborating with government officials. Last year, it earned the “Ecolabel” status from the Technical Committee on Verification of Environmentally Friendly Technology of Indonesia for its waste-to-energy systems process “ECOsystem” technology. Food wastage is a global problem, and Indonesia wants to reduce their own problem as the issue costs the nation $940 billion annually.
With GRCO’s assistance, China would not have to rely on corn and ethanol imports from the U.S. The two powerhouse are involved in a trade war, each implementing higher tariffs from imports of one another. READ MORE
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