The national policy plan will promote the use of ethanol gasoline for vehicles nationwide by 2020. In August 2018, the State Council determined the overall layout of the bio-fuel ethanol industry. In addition to the existing 11 pilot provinces, ethanol gasoline will be further promoted in 15 provinces including Beijing, Tianjin and Hebei province.
According to China's currently promoted E10 ethanol gasoline (blending 10% ethanol), fuel ethanol in China has a huge potential market space. China's annual production of fuel ethanol is only 2-3Mt of scale. Could fuel ethanol meet the demand of 10MT in 2020? 2019 is a key year for ethanol industry, there are 6MTA fuel ethanol total capacity is closely promoted.
In May 2019, Inner Mongolia Liniu Biochemical Co., Ltd. used the idle capacity to produce 150kt/a of fuel ethanol technical transformation project environmental impact assessment public participation in the first public announcement. The project is located in Tongliao City, Inner Mongolia. The company's existing alcohol plant production capacity of 100kt/a and 60kt/a solvent plant, the addition of a set of molecular sieve device based on the original old device, can achieve an annual output of 150kt/a of fuel ethanol. The total investment is CNY132 million.
In April 2019, the second information disclosure of the environmental impact assessment of the 300kt/a biofuel ethanol project in Jidong County, Heilongjiang Province was published. The project is located in the Jidong Coal-Electric Recycling Economy Demonstration Base of Heilongjiang Province. SDIC Bio-Energy (Jidong) Co., Ltd. will build a 300kt/a biofuel ethanol project, which was started construction on October 28, 2018.
In April 2019, CNCEC Tianchen Company won the bid to win the 300kt/a biofuel ethanol project of SDIC Bio-Energy Jidong, and once again won the bid for the EPC contract of the annual production of 300kt/a of fuel ethanol project of SDIC Bio-Energy (Hailun). SDIC Bio-Energy (Hailun) uses corn as a raw material to build a production capacity of 300kt/a fuel ethanol and 258kt/a DDGS. The total investment is about CNY1.3 billion. It is expected to be completed and put into operation in 2020.
In February 2019, it was learned that the 300kt/a biofuel ethanol project of SDIC Bio-Energy Diaobingshan has been put into trial operation and is scheduled to be put into production in April. The project was approved by the Liaoning Provincial DRC in June 2017 and started construction. It was jointly invested by SDIC Bio-Energy (Tieling) Co., Ltd. and Tiefa Coal Industry (Group) Co., Ltd. with a total investment of CNY1.199 billion and a designed annual output of 306kt/a fuel ethanol.
In February 2019, the Inner Mongolia Autonomous Region Energy Bureau approved the establishment of a 600kt/a fuel ethanol project by COFCO Biochemical (Xing'an League) Co., Ltd. The project construction site is located in Xing'an League Economic and Technological Development Zone. The project produces 600kt/a fuel ethanol and 520kt/a DDGS feed and 120kt/a carbon dioxide. The total investment of the project is CNY2.98bn.
In January 2019, the environmental impact assessment of the annual production of 300kt/a corn fuel ethanol project of Heilongjiang Wanli Runda Biotechnology Co., Ltd. was publicly announced. The project plans to use corn from Baoqing County and surrounding areas as raw materials, with an annual output of 300kt/a tons of fuel ethanol, and a by-product of DDGS feed of 240kt/a. The total investment of the project is CNY980mn. The project resumed work in February this year and plans to commission in October.
According to data from ASIACHEM Consulting, the total production capacity of fuel ethanol projects under construction and planning in China is currently over 6MTA. 3rd Fuel Ethanol Technologies and Market Forum 2019 will be held in Ji’nan, Shandong on June 26-27, the upcoming conference focus on China's fuel ethanol & ethanol gasoline policy and market trends; China's fuel ethanol 2019 new supply and demand pattern; Technical progress and commercial application of biomass/coal (syngas) to ethanol, etc.
