UPDATE 4-China Sets 2020 Target for Nationwide Ethanol Use to Cut Corn Stocks
by Josephine Mason, Chen Aizhu, Dominique Patton and Hallie Gu (Reuters) Beijing sets first timeline for ethanol use in cars; Push comes amid bid to whittle down massive corn stockpile; China has no nationwide ethanol mandate like U.S., Brazil; Shares in China-listed biofuel makers rally (Updates throughout, adds analyst comments)
China plans to roll out the use of ethanol in gasoline nationally by 2020, state media reported on Wednesday citing a government document, as Beijing intensifies its push to boost industrial demand for corn and clean up choking smog.
It’s the first time the government has set a targeted timeline for pushing the biofuel, known as E10 and containing 10 percent ethanol, across the world’s largest car market, although it has yet to announce a formal policy.
A renewed effort to promote the nation’s fledging biofuels industry will be a further blow to major oil producers. On Saturday, the government said it has begun studying when to ban the production and sale of cars using traditional fuels.
To implement the E10 plan, China will need to expand its biofuels industry on a major scale.
The Xinhua report said the government aims to build an ethanol production base in the country’s northeast, the main corn growing region, without giving further details.
Still, the project has been in the works for a while as Beijing has struggled to whittle down mountains of ageing corn in state warehouses.
The government also aims to have large-scale domestic production of cellulosic biofuels, which are made from sources such as grasses, trees and crop waste, by 2025, it said. READ MORE
China aims to beef up bioethanol production by 2020 (Biofuels International)