Description: "The rapidly developing Chinese biofuel market has been the hotspot in the past few years since the renewable biofuel is of great importance to relieve energy shortage in the future. To figure out the current situation and prospect of biofuel in China, this report widely covers information about feedstock and their production situation, competitive analysis, future forecast, governmental policies and main producers, etc. Owning to technology bottleneck and food security concern, biofuel production has encountered barriers, especially fuel ethanol production in China. At present, the second-generation biofuel, namely cellulosic fuel ethanol, has attracted the most attention. In China, most biofuel manufacturers are domestic enterprises and major fuel ethanol producers are large-size state-owned enterprises who have receive great support from the government, while some biodiesel producers are private manufacturers. Biofuel industry in China is enjoying promising prospect and CCM provides you an insightful analysis on the following aspects. To provide an overview of biofuels industry in China; To survey current production situation of biofuels; To discuss the influence of governmental regulation on biofuels industry; To assess China’s technology level of biofuels production; To know the feedstocks of biofuels production; To find out drivers behind the development of biofuels; To understand the position of biofuels sector in China's energy industry ; To forecast the future of China's biofuels industry; To identify commercial opportunities in China’s biofuels market; To assess the key players of biofuels in China, including producers and end users.

1. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Biofuels Market in China
The first edition
August 2009
Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd .
Guangzhou, P. R. China
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China)
Any publication, distribution or copying of the content in this report is prohibited.
Website: http://www.cnchemicals.com
Tel: +86-20-3761 6606
Fax: +86-20-3761 6968
Email: econtact@cnchemicals.com

2. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Description:
The rapidly developing Chinese biofuel market has been the hotspot in the past few years since the
renewable biofuel is of great importance to relieve energy shortage in the future. To figure out the
current situation and prospect of biofuel in China, this report widely covers information about feedstock
and their production situation, competitive analysis, future forecast, governmental policies and main
producers, etc.
Owning to technology bottleneck and food security concern, biofuel production has encountered
barriers, especially fuel ethanol production in China. At present, the second-generation biofuel, namely
cellulosic fuel ethanol, has attracted the most attention. In China, most biofuel manufacturers are
domestic enterprises and major fuel ethanol producers are large-size state-owned enterprises who
have receive great support from the government, while some biodiesel producers are private
manufacturers.
Biofuel industry in China is enjoying promising prospect and CCM provides you an insightful analysis
on the following aspects.
To provide an overview of biofuels industry in China;
To survey current production situation of biofuels;
To discuss the influence of governmental regulation on biofuels industry;
To assess China’s technology level of biofuels production;
To know the feedstocks of biofuels production;
To find out drivers behind the development of biofuels;
To understand the position of biofuels sector in China's energy industry ;
To forecast the future of China's biofuels industry;
To identify commercial opportunities in China’s biofuels market;
To assess the key players of biofuels in China, including producers and end users.
Main content:
No. Content Page
Executive summary 1
Source and methodology 3
I Overview of biofuel industry in China 6
I-1 Development situation of biofuel industry in China 6
I-2 Position of biofuels sector in energy industry in China 7
II Feedstock supply 8
Executive summary 8
II-1 Introduction to food feedstock 9
II-2 Introduction to non-food feedstock 22
II-3 Introduction to oilseeds 30
II-4 Introduction to cellulosic raw materials 36
II-5 Energy crops 40

3. CCMData & Primary Intelligence
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II-6 Waste oil 41
III Biofuels in China 43
Executive summary 43
III-1 First-generation biofuels 46
III-1.1 Fuel ethanol 46
III-1.2 Biodiesel 53
III-1.3 Biobutanol 58
III-1.4 Other biofuels 60
III-2 Second-generation biofuels 62
III-2.1 Production situation of second-generation biofuels 62
III-2.2 R&D situation of second-generation biofuels 63
III-2.3 Future prospect 64
III-3 Third-generation biofuels 65
III-3.1 Production situation of third-generation biofuels 65
III-3.2 R&D situation of third-generation biofuels 66
III-3.3 Future prospect 67
III-4 Fourth-generation biofuels 68
IV Processing technologies in biofuel industry 69
Executive summary 69
IV-1 Enzymatic hydrolysis 70
IV-2 Fermentation 73
IV-3 Transesterification 75
IV-4 Pyrolysis & gasification 76
IV-5 Others processing technologies 77
IV-6 Research institutes and technology transfer 77
V Governmental regulations on biofuel industry and their influence 80
Executive summary 80
V-1 Regulations on feedstock 82
V-2 Environmental regulations 83
V-3 Subsidies and incentives 85
V-4 Restrictions 86
V-5 Other regulations 87
VI Competitiveness landscapes 91
VII Future forecast to the next 5~10 years 94
VII-1 Key factors influencing biofuel industry in China 94
VII-2 Forecast on biofuel industry 96
VIII Conclusion and opportunities 98
VIII-1 Conclusion 98
VIII-2 Opportunities 100
IX Appendix 101
IX-1 Profiles of major fuel ethanol manufacturers 101
IX-1.1 Henan Tianguan Group Co., Ltd. 101
… … 0
IX-1.7 Zhejiang Haoqi Biomass New Energy Technology Co., Ltd. 108

4. CCMData & Primary Intelligence
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IX-2 Profiles of major biodiesel manufacturers 109
IX-2.1 Sichuan Gushan Group 109
… … 0
IX-2.10 Hebei Dong'an Industrial Co., Ltd. 117
IX-3 Profiles of major biobutanol manufacturers 118
IX-3.1 Hebei CNCP Huaying Co., Ltd. 118
IX-3.2 Jilin Cathay Industrial Biotech Co., Ltd. 119
Executive summary:
China has been faced with shortage of fossil fuel for a long time and it has been importing a large
quantity of petroleum every year, for example, net importing XXX million tonnes, namely, XXX of its
total consumption in 2008. This has underlined the urgency for China to develop substitutes for fossil
fuel. On the other hand, its abundant resources have made it possible for this nation to develop biofuel
products, the ideal alternative of fossil fuel.
China has released a series of policies to promote biofuel industry development in recent years. The
National Development and Reform Commission of China made a three-stage plan for the development
of biofuels industry:
① Technology industrialization in the 11th five years;
② Industrial scale in the 12th five years;
③ Great development after 2015.
In 2007, according to Zhu Zhigang, vice director of Ministry of Finance People’s Republic of China,
bio-energy will take up XXX of China’s oil consumption by 2020; China’s biofuels capacity will reach
XXX million tonnes in 2020, including XXX million tonnes of fuel ethanol and XXX million tonnes of
biodiesel.
China’s biofuel industry has made great achievement in recent years, though still at growth stage.
Among all the biofuel products, fuel ethanol has developed best in China with strong support from the
government. In 2008, among China’s total oil fuel consumption, about XXX million tonnes; biodiesel
constituted XXX million tonnes, that is, XXX of all the oil fuel and fuel ethanol XXX million tonnes,
equaling XXX.
Both biodiesel and fuel ethanol takes up less than XXX of the total oil fuel consumption, suggesting
their huge development potential.
Now, most biofuel products in China are only the first generation ones. Technology adopting food
feedstock to produce biofuels has become mature. In 2008, there were XXX manufacturers producing
XXX tonnes of fuel ethanol and XX manufacturers producing XXX tonnes of biodiesel through
first-generation technology. In 2009, there are XXX manufacturers trying to produce biofuel through
second-generation technology.

5. CCMData & Primary Intelligence
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Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
In recent years, more and more feedstock, mainly including food feedstock, non-food feedstock,
oilseed, cellulosic raw material, energy crop and waste oil, is used to produce fuel ethanol, as biofuels
are becoming increasingly hot.
At present, food feedstock is the major raw material of biofuel, including corn and wheat used to
produce fuel ethanol. Corn has been the most popular raw material to produce fuel ethanol. But
Chinese government has enacted regulations to restrict the use of corn in fuel ethanol production,
because corn supply as food and feed source in China has been very tight with China’s large
population and little corn has been imported into China for concerns of potential ecological danger from
overseas GM corn.
Cassava as non-food feedstock will be the major raw material of biofuel. Biofuel from cassava has
advantage of lower production cost. In the south of China, the large area of wasteland will be ideal for
potential cassava planting, which will provide a large quantity of feedstock for biofuel industry. At
present, some domestic fuel giants have invested or will invest in large-scale cassava planting and in
factories in Guangxi, Yunnan, Hainan to produce fuel ethanol.
Corn cob and stover, wheat/rice straw are cellulosic materials for biofuel if China’s technology of
second-generation biofuel matures. Their output in China is huge.
Researches on biofuels are hot in China at present. Research on technology of biofuel in China
focuses on enzymatic hydrolysis, fermentation, transesterification and pyrolysisi & gasification. At
present, China's biomass liquid fuel industry is lagging behind in technology, with the following
disadvantages:
Low utilization efficiency of raw materials, high raw material consumption;
High production cost and high energy consumption;
Lack of complete production technology and matched equipment for Chinese non-food plants
(cornstalks, rice straw, small polycarpa etc.).
However, China's biofuel technology will be solved in the future. Researches on technology for the
second generation of biomass liquid fuel (main raw materials are agricultural and forestry residues) has
become the hotspot in China's universities and research institutions.
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and
presented in a logic way.
Sample pages：

6. II Feedstock supply
Cassava alcohols
Alcohols are the largest consumption field of cassava. In 2008, cassava alcohols output was
about 0.72 million tonnes which needs to consume 5.4 million tonnes cassava.
Cassava is a more appropriate raw material to produce alcohols compared with other raw
materials.
Table II-12 Economic benefit comparison of alcohols production using different raw materials
in China
Item Cassava Sugarcane Corn Wheat Potato Sweet potato
Price of RM（USD/t） 70.02 00000 00000 00000 00000 00000
Unit consumption（tonne） 00000 2.8 00000 00000 00000 00000
Cost of RM（USD/t） 00000 00000 00000 00000 00000 00000
Process cost（USD/t） 00000 00000 00000 117.13 000003 00000
Cost of producing alcohol（USD/t） 00000 00000 00000 00000 00000 00000
Price of alcohol（USD/t） 00000 00000 00000 00000 00000 819.91
Profit（USD/t） 00000 00000 -14.06 00000 00000 00000
Source: CCM International
III-1 First-generation biofuels
III-1.1 Fuel ethanol
In China, fuel ethanol has the largest output among all biofuels, playing an important role.
Table III-5 Basic information of main fuel ethanol manufacturers in China, 2009
No. Name Ownership Raw materials Capacity ’09
(t/a)
Output ’08 (tonne)
1 00000000000 00000 0000 0 00 000
2 Jilin Fuel Alcohol Company Limited 00 0 000 000 000
3 00000 0000 0 00 Corn 000 000
4 000 0000 00000 000 200,000 000
5 000 00000 000 000 000 000
6 00000000 Private 00000 000 27,000
7 00000000 00 0 000 000 000
Total - 000 000
Source: CCM International

7. Table III-6 Potential fuel ethanol manufacturers in China, 2009
No. Name Ownership Raw materials Capacity being
constructed (t/a)
Launch
time
1 00,000 00,000 00,000 00,000 00,000
2 00,000 00,000 00,000 500,000 00,000
3 Xinjiang Haoqi Biomass New Energy
Technology Co., Ltd.
00,000 00,000 00,000 00,000
4 0,000 Private 0,000 0,000 N/A
5 0,000 0,000 Cassava,
sugarcane
0,000 0,000
Total - - 00,000 00,000
Source: CCM International
III-1.2 Biodiesel
In China, biodiesel output ranked the second in biofuel products. China’s biodiesel industry is
only in introduction stage at present.
Table III-8 Basic information of biodiesel manufacturers in China, June 2009
No. Name Status Ownership Raw material
Capacity ’09
(t/a)
Output ’08
(t)
Price
(USD/t)
1 Sichuan Gushan Group 000 000 000 000 000 000
2 00 0 000 000 000 200,000 000 000
3 00 0 000 000 000 000 000 00 0
4 000 Active 000 Soybean oil,
palm oil
000 000 000
5 000 000 000 000 000 000 000
6 00 0 000 000 000 000 000 000
7 000 000 000 000 000 000 000
8 00 0 000 000 000 000 00 0 000
9 000 000 Private 000 000 20,000 000
10 000 000 000 000 000 000 776
11 00 0 000 000 000 000 000 000
12 0 00 000 000 000 000 000 000
13 000 000 000 000 000 0 00 000
14 Sichuan Chengdu Yiyou Bio-chemical Co.,
Ltd.
000 000 00 0 000 000 000
15 0 00 000 000 000 0 00 000 0 00
16 000 000 000 000 000 000 000
Others - - - 000 000 000
Total - - - 000 000 -
Source: CCM International

8. III-1.3 Biobutanol
Manufacturer
By the end of June 2009, only five manufacturers have been involved in biobutanol production,
but all of them are idle due to low profit at present.
Table III-11 Basic information of main biobutanol manufacturers in China, 2009
No. Name Ownership Status
Raw
materials
Capacity ’09
(t/a)
Price
(USD/t)
1 CNCP Huaying Co., Ltd 00 0 00 00 0 0 0 000
2 0 0 000 00 Corn,
cassava
00 N/A
3 00 Private 00 000 00 000
4 0 0 0 00 Idle 00 0 00 00 0
5 00 000 00 000 5,000 000
Total - - - 00 000
Source: CCM International
IV Processing technologies in biofuel industry
The current researches on biofuel production technologies in China mainly cover the following
four methods.
Table IV-1 Comparison among four kinds of biofuel technologies in China
Technology Current situation Likely progress to 2014 Outcome of progress
Enzymatic hydrolysis 00000000000 To be used more widely
and make progress
000000
00000000000
Fermentation 00000000000 00000000000 To be key fuel ethanol production
technology 00000000
Transesterification Mainly used in biodiesel
production00000000
00000000000 00000000000
Pyrolysis & gasification 00000000000 00000000000 000000 due to high production cost.
Source: CCM International
V Governmental regulations on biofuel industry and their influence
There are many factors influencing biofuel industry, and government regulations are one of the
most significant ones.
VI Competitiveness landscape
The advent of biofuels marks a far-more diverse transportation fuels market, characterized by

9. new products, new players and a different competitive landscape.
Based on Michael Porter diamond model, CCM has made a brief analysis on competitiveness
of China’s biofuel industry.
Table VI-2 Comparison of the 3 state-owned ethanol producers in China, 2009
Company
name
subsidiary Raw
material
Capacity
’09 (t/a)
Current situation Strategy for biofuels
0000000 0000000 0000000 0000000
0000000 Corn 0000000 0000000
COFCO
0000000 0000000 200,000 0000000
COFCO plans to take up 60% fuel ethanol
capacity in China by 2010, 0000000
Henan Tianguan Group
Co., Ltd.
0000000 0000000 55% share is
held0000000
00000
0000000 corn 500,000 0000000
0000000 plans to build about 3 million t/a
biofuel capacity by 2010, 0000000.
0000000 N/A N/A Invest some companies
with COFCO 0000000
Cooperates with 0000000 for
second-generation biofuels production.
Also plans to establish fuel ethanol
production line in Central China, using
sweet potato as material.
Source: CCM International