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Highlights on Issue 1011 Boeing Co., Ltd. (or Boeing) initiates cooperation with Qingdao Institute of Bioenergy and Bioprocess Technology (or QIBEBT) on algae-based biofuel researches for aviation use on October 20th, 2010. Guangxi COFCO Bio-energy Co., Ltd. (or Guangxi COFCO) tried to increase output of cassava based fuel ethanol through equipment modification of existing production lines in a way of energy conservation and emission reduction. Chinese biodiesel industry will enter industrial promotion stage during the12th Five-Year Plan (2011~2015) of China. Gushan Environmental Energy Ltd. (or Gushan) is making efforts to walk out of current loss situation by expanding biodiesel capacity, extending alternative sales channels and repurchasing share. Guangxi Hezhong Energy Co., Ltd. (or Guangxi Hezhong) will launch a new biodiesel factory with total capacity of 100,000t/a in Nan'ning City in 2011. Jiangnan University is actively doing in-depth researches on pilot production of cutinase to accelerate cutinase industrial application in textile industry. Daqing Huali Energy Co., Ltd. (or Daqing Huali), engaged in manufacturing and sale of microbial oil displacing agent, is trying to seize domestic market of microbial oil displacing agent by launching a new factory. Domestic bio-acrylamide price sees uptrend by the end of this year as a result of the price rise of its raw material acrylonitrile. Chinese institutes are actively doing researches and development on fermentation processes of γ-linolenic acid (or GLA) in order to overcome disadvantages of evening primrose based extraction process and meet increasing demand for GLA. By now, only Japan and Britain have achieved GLA fermented GLA industrialization. Shanghai Tongjieliang Biomaterial Co., Ltd. (or Shanghai Tongjieliang) is making efforts to extend PLA industrial chain through expanding PLA capacity, exploiting new raw materials of PLA and developing new PLA downstream products. Ningbo Tian'an Biologic Material Co., Ltd. (or Ningbo Tian'an) is planning to expand its current PHBV production capacity 2,000t/a into 10,000t/a by 2012. Most PVA enterprises plunge into production plight currently because of tight power supply. Many PVA producers are endeavoring to look for other new production technologies such as ethanol-ehtylene method to produce PVA, which are less dependent on electricity.
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Industrial Overview Currently the global economic recovery becomes weaker and regionally uneven, which is expected to slow down in developed countries, but still keep strong in the developing countries like China, India and Brazil who start to lead the global economic recovery trend. In mid-October, China officially issued the social and economic development orientations and goals for the next five years (20112015) at a national party congress, decided about four pillar industries for the next ten years including bio-industry and environmental protection industry and proposed "carbon emission amount standard" as a criterion for the industrial sustainable development, aiming to speed up the transformation of the domestic economic growth mode and advocate significance of energy conservation and emission reduction. In accordance with these orientations, many Chinese enterprises engaging in the bio-fuel and bio-material production plan to expand capacity and invest more in these fields. Meanwhile, some foreign enterprises also saw the huge commercial opportunities in these fields and sought cooperation with the Chinese enterprises, such as bio-diesel cooperative researches. And Chinese government has formally announced B5 biodiesel standard in late October of 2010, which becomes a mark for Chinese biodiesel industry entering industrial promotion stage.
Editor's Recommendation on Issue 1011 Chinese biodiesel industry to enter promotion stage during 2011~2015 According to the Middle and Long-term program of Renewable Energy Development, which was issued by the State Council in August 2007, Chinese renewable energy consumption volume will capture 10% of total energy consumption volume by 2010, and 15% by 2020. Among that, biodiesel consumption volume will reach 200,000 tonnes by 2010 and 2 million tonnes by 2020, and China's total biodiesel capacity will be forty times over 2005. This program shows that Chinese biodiesel industry will enter industrial promotion stage during the 12th Five-Year Plan (2011~2015) of China, during which many favorable policies such as tax preference and imposing biodiesel use in many more provinces for Chinese biodiesel industry are estimated to issue.. Chinese government formally announces B5 biodiesel standard in late October of 2010, which becomes a mark for Chinese biodiesel industry entering industrial promotion stage. Actually, there was no formal biodiesel standard released for Chinese biodiesel industry before, which blocked the development Chinese biodiesel industry development to some extent. Therefore, the issue of B5 biodiesel standard will provide a legitimate pass for biodiesel to be sold in national gas stations, solving the bottleneck of long-term shortage of sales channel for biodiesel to a certain degree.But due to obvious price disadvantage, biodiesel still can not compete with tradtional diesel made from oil. Moreover, supply of traditional diesel is sufficient enough, and several domestic large-scale oil enterprises are continuously expanding their traditional diesel capacity in recent years. Till now, only Hainan Province has implemented B5 biodiesel standard. But in order to promote biodiesel use in the whole China, Chinese government will certainly popularize biodiesel use in other provinces during 2011~2015, which will gradually improve the long-term undesirable performance of biodiesel industry, revealed by many insiders. Besides the B5 biodiesel standard, many other favorable policies will be issued during the period, such as subsidy policies. In fact, biodiesel industry belongs to high-technology industry, which enjoys some taxes exemption such as consumption tax. In addition, China implements 100% refundable value added tax for biodiesel enterprises. But in many EU countries, such as Germany, Italy and Denmark, local governments compell all the biodiesel enterprises to use biodiesel and impose no tax. ……
Since mid-2010, NatureWorks LLC
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(NatureWorks, headquartered in the U.S.) has been reported to establish its second plant of PLA beyond the U.S. in 2013-2014, and China may probably become one of its perfect options. By then, the company's global total capacity will reach 280,000t/a, twice as much as now. In China, though with quite mature technology, PBS producers are restricted to carry out large-scale production, which is limited by the immature market situation. And producers hopes that the government could release more support policy to biodegradable plastics industry.
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