Ethanol Potential in China — Ethanol Policy Changes in China May Bring Opportunities to US Corn
by Lin Tan (DTN The Progressive Farmer) New government policy recently set a target to roll out the use of ethanol in gasoline nationwide in China, according to a plan jointly released by 15 ministries, such as the National Development and Reform Commission, the National Energy Administration, and the Ministry of Finance.
To meet its goals of implementing 10% ethanol nationwide by 2020, China would need to import ethanol, at least in the short term. Agrimoney reported comments last week from Juan Luciano, CEO of ADM, anticipating China would need to import roughly 254 million gallons of ethanol annually.
“So far, ethanol-added gasoline is only available in 11 provinces in China, total ethanol-added gasoline is only 20% of gasoline consumed in the country,” said Xie (Guanghui Xie, professor and deputy director of China National Energy Research and Development Center for Biomass (NECB) based in China Agricultural University, Beijing).
The new policy is to let all 31 provinces, autonomy regions, as well as municipal cities, use E10, which means 10% of the gasoline is ethanol.
There are 205 million cars in China consuming 3.8 billion gallons of gasoline annually. With 10% ethanol added, the country will open a biofuel ethanol market of 380 million gallons, not considering the increase of gasoline consumption in the following years. READ MORE