Biomass energy market in china
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Biomass energy market in china Biomass energy market in china Document Transcript

  • CCM Data & Primary Intelligence Website: Email: Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
  • CCM Data & Primary Intelligence Description: "With increasing importance of energy reservation, there has been a rapid development in Chinese biomass energy market in the past few years. And evidence is mounting that biomass energy industry in China will enjoy promising prospect in the long run. At present, technology bottlenecks and insufficient grain feedstock supply are two major obstacles for development of biomass energy products, including liquid biofuel, biopower generation, solid biofuel and biomass gas. Rapid economic development of China would drive the demand for energy to rise continuously. However, since fossil fuel has already been in short supply, China would vigorously promote the development of biomass energy industry instead. Besides, China boasts abundant biomass resources such as rice/wheat straw, corn cob, etc., which would further advance China’s motivation in this field. To facilitate the sustainable and sound development of biomass energy industry, Chinese government released a series of policies to set medium and long target for each biomass energy product and provide fiscal subsidy for some important products. To figure out the current situation and prospect of biomass energy and the limitations for future development in China, the report covers the information on feedstock and their production situation, marketing channels, consumption situation, and future forecast etc. Among them, the feedstock supply and current technology of each biomass energy product are especially given an insightful analysis. Besides, CCM provides you an insightful analysis on other following questions: - What is the situation of raw material supply and its influence on biomass energy production in China? - Who are key active and potential players in China's biomass energy industry? - What are the key factors affecting each Chinese biomass energy product? - What is the competition situation in Chinese biomass energy industry? - What is the trend of each Chinese biomass energy product in the near future? - How about the policies and incentive for biomass energy industry in China? - Where are the opportunities in the Chinese biomass energy industry? Main content: No. Content Page Executive summary 1 Methodology and source 2 I Overview of biomass energy market in China 5 I-1 Position of China’s biomass energy market in the world 5 I-2 Classification and characteristics of biomass energy in China 7 I-3 Development environment of China’s biomass market 7 I-4 Overview of biomass energy development 8 Website: Email: Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
  • CCM Data & Primary Intelligence I-5 Overview of biomass energy utilization 9 II Liquid biofuel market 10 II-1 Summary of China’s liquid biofuel market 10 II-2 Feedstock supply 11 II-2.1 For fuel ethanol 13 II-2.2 For biodiesel 31 II-2.3 For others 34 II-2.4 Supply discussion 35 II-3 Production situation by products 37 II-3.1 Fuel ethanol 37 II-3.2 Biodiesel 45 II-3.3 Others 49 II-4 Marketing channels of liquid biofuel in China 50 II-5 Consumption situation 51 II-6 Forecast on China’s liquid biofuel market (2010~2015) 52 III Bio-power generation market 54 III-1 Summary of China’s bio-power market 54 III-2 Feedstock supply 54 III-2.1 Straw-fired power generation 54 III-2.2 Bio-gasification power generation 58 III-2.3 Biomass co-firing power generation 60 III-2.4 Methane power generation 60 III-2.5 Refuse incineration power generation 62 III-3 Technology 62 III-3.1 Direct-fired bio-power 62 III-3.2 Bio-gasification power generation 63 III-3.3 Biomass co-firing power generation 65 III-3.4 Refuse incineration power generation 66 III-4 Achievements 67 III-4.1 Installed capacity, on-grid generation and distribution 67 III-4.2 Market value for bio-power in China in 2008 69 III-5 Limitations for bio-power generation in China 70 III-5.1 Limitation of raw material supply 70 III-5.2 Limitation of technology and equipment 71 III-5.3 Limitation of feed-in tariff policy for biomass 72 III-6 Forecast on China’s bio-power generation market (2010~2015) 72 IV Solid biofuel market 74 IV-1 Summary of solid biofuel market in China 74 IV-2 Feedstock availability 74 IV-3 Achievements 75 IV-4 Limitations of solid biofuel utilization in China 76 IV-4.1 Limitations in existing equipments 76 IV-4.2 Limitations in existing bio- briquetting manufacturers 77 IV-4.3 Limitations in investment and financing 77 Website: Email: Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
  • CCM Data & Primary Intelligence IV-5 Forecast on China’s solid biofuel market (2010~2015) 78 V Biomass gas market 79 V-1 Summary of biomass gas market in China 79 V-2 Feedstock availability 79 V-3 Achievements 80 V-4 Limitations of China’s biomass gas market 84 V-5 Forecast on China’s biomass gas market (2010~2015) 84 VI Policy and incentive for biomass industry in China 85 VI-1 Main policies and incentives for biomass energy 85 VI-1.1 Laws and plans for bioenergy 85 VI-1.2 Direct bioenergy policies and incentives 87 VI-2 Analysis of bioenergy policy and incentive 88 VII Introduction to key players 92 VII-1 Company profile 92 VII-1.1 Fuel ethanol producers 92 VII-1.1.1 Henan Tianguan Group Co., Ltd. 92 … … 0 VII-1.1.6 Sichuan Yangming Energy Technology CO., Ltd. 98 VII-1.2 Biodiesel producers 100 VII-1.2.1 Sichuan Gushan Group 100 … … 0 VII-1.2.12 Shandong Linqing Xinghua Oil Co., Ltd. 109 VII-1.2.13 China Biofuel International Holding Co., Ltd. 110 VII-1.3 Biopower generation 111 VII-1.3.1 National Bio Energy Co., Ltd. (NBE) 111 … … 0 VII-1.3.3 Wuhan Kaidi Electic Power Co., Ltd. (Kaidi) 114 VII-2 Competitiveness analysis 116 VII-3 Potential competitors 119 VIII Conclusion and opportunity 121 VIII-1 Conclusion 121 VIII-1.1 Liquid biofuel 121 VIII-1.2 Biomass power generation 122 VIII-1.3 Solid biofuel 122 VIII-1.4 Biogas and biomass hydrogen 123 VIII-2 Opportunities 123 VIII-2.1 Liquid biofuel 123 VIII-2.2 Biomass distributed power generation system 123 VIII-2.3 Biomass heat supply 124 VIII-2.4 Circular economy model 124 Executive summary: China has a long history of shortage of fossil fuel and import of petroleum with large quantities. For example, xx million tonnes of petroleum were imported in 2009, accounting for xx% of the total Website: Email: Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
  • CCM Data & Primary Intelligence consumption. This has underlined the urgency for China to develop substitutes for fossil fuel, and abundant resources have made it possible for China to develop biomass energy products. China has released a series of policies to promote biomass energy industry development in recent years, and set long-term plans for each biomass energy products: China’s fuel ethanol capacity will reach xx million tonnes and biodiesel capacity will reach xx million tonnes in 2020. Simultaneously, installed capacity of biopower generation will reach xxMW, and China will achieve xx billion cubic meters biogas and xx million tonnes solid biofuels by then. Chinese ambitious plan has driven fast development of biomass energy industry. Among all biomass energy products, fuel ethanol has developed best in China with strong support from the government. Since fuel ethanol only takes up less than 1% of the total oil fuel consumption, it has huge development potential. However, each product of biomass energy industry has faced bottlenecks. For instance, after government enacted regulations to restrict corn use in fuel ethanol production, future development of biomass energy industry is hampered by immature technology of second-generation fuel ethanol, limited planting area and low yield of non-grain feedstock. At present, grain feedstock including corn and wheat are major raw materials of fuel ethanol. But non-grain feedstock such as cassava, sweet potato will replace grain feedstock to be major raw materials before the commercial production of second-generation fuel ethanol. As for the raw materials of biodiesel, China is actively exploring energy crops to replace insufficient waste oil. Regarding other biomass energy products, livestock manure and straw are major raw materials for biogas and biopower generation respectively now. The current technology adopting corn, wheat and cassava producing fuel ethanol and using waste oil producing biodiesel is mature. What the institutes and researchers concern for is the immature technology of second generation biofuels. Moreover, how to reduce cost of biopower generation, solid biofuels and biogas is also a worry. Although each biomass energy product faces bottlenecks now, the future prospect of biomass energy will be bright in China after the immature technology is improved and the problem of raw materials shortage is resolved. 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: Website: Email: Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
  • I Overview of biomass energy market in China I-1 Position of China’s biomass energy market in the world …… Now, China is the third largest producer of fuel ethanol, but has fallen far behind other countries in development of other biomass energy products. Fuel ethanol It is estimated that the output of fuel ethanol in China only accounted for 0000% of the world total 0000 million in 2009. Table I-1.1 Top fuel ethanol production countries in the world Country Output (tonnes, 2009) Raw materials Legal standard US 000000 000000 E10 Brazil 000000 Sugar cane 000000 China 1,620,000 000000 000000 Canada 000000 000000 000000 Germany 000000 Wheat, sugar beet 000000 French 868,000 000000 E5, E10 Source: CCM International II-2 Feedstock supply II-2.1 For fuel ethanol Cassava …… Compared with other raw materials, cassava is a more preferable raw material to produce alcohol. Table II-2.1.5 Economic benefit comparison of alcohols production using different raw materials in China, 2009 Item Cassava Sugarcane Corn Wheat Sweet potato Price of RM(USD/t) 000000 000000 000000 331.87 000000 Unit consumption(tonne) 7 000000 000000 000000 8.7 Cost of RM(USD/t) 000000 834.60 000000 000000 000000 Process cost(USD/t) 000000 000000 000000 000000 000000 Cost of producing alcohol(USD/t) 000000 000000 000000 000000 754.06 Price of alcohol(USD/t) 000000 000000 761.35 000000 000000 Profit(USD/t) 182.99 000000 000000 000000 000000 Source: CCM International
  • Other potential non-grain feedstock Besides raw materials mentioned above, sugar cane, sweet grass, sweet sorghum may be choices to produce fuel ethanol as non-grain feedstock. Table II-2.1.9 General information of other potential non-grain feedstock for fuel ethanol production in China Raw material Planting area Unit consumption Main applications Future prospect in fuel (ha. 2008) (t/t) ethanol Sugar cane 000000 000000 000000 000000 Sweet 000000 16 Sugar slab, brown 000000 sorghum powdered sugar and white granulated sugar Sweet grass N/A 000000 000000 Basically not used Source: CCM International Other potential energy crops Besides jatropha curcas, yellow tree, swida wilsoniana, xanthoceras sorbifolia will be potential energy crops to produce biodiesel in the future in China. Table II-2.2.2 Other potential energy crops for biodiesel in China Raw material Potential planting Distribution Unit yield Potential capacity Production cycle area (ha.) (tonne/ha.) (t/a) (year) Xanthoceras 000000 000000 4.5~9.0 000000 000000 sorbifolia Swida wilsoniana 000000 Shaanxi, Shanxi, 000000 000000 000000 Hubei, Henan Yellow tree 300,000 000000 000000 900,000 000000 Source: CCM International II-3 Production situation by products II-3.1 Fuel ethanol Production With the largest output in all biofuels, China’s fuel ethanol industry witnessed fast development in past few years. By the end of 2009, the capacity of fuel ethanol is ……
  • Figure II-3.1.1 Output and growth rate of fuel ethanol in China, 2003-2009 1,800,000 24% 1,600,000 19% 1,400,000 14% 1,200,000 9% 1,000,000 800,000 4% 600,000 -1% 2003 2004 2005 2006 2007 2008 2009 Output (tonne) Grow th rate Source: CCM International Manufacturers By the end of 2009, only seven active manufacturers are involved in fuel ethanol production in China, five of which are national designated production bases. Table II-3.1.1 Basic information of key fuel ethanol manufacturers in China, 2009 No. Name Abbreviation Ownership Raw materials Capacity ’09 (t/a) Output ’09 (tonne) 1 0000000 0000000 0000000 0000000 600,000 0000000 2 0000000 Jilin Fuel 0000000 0000000 0000000 0000000 Alcohol 3 0000000 0000000 0000000 Corn 440,000 0000000 4 0000000 0000000 State-owned 0000000 0000000 180,000 5 0000000 0000000 0000000 Cassava 0000000 0000000 6 Sichuan Yangming Energy 0000000 0000000 Sweet potato 50,000 0000000 Technology CO., Ltd. 7 0000000 0000000 Private 0000000 0000000 1,500 Total - - - 0000000 0000000 Source: CCM International III-2 Feedstock supply III-2.1 Straw-fired power generation The straw-fired power generation needs large quantities of straw resource, and only large-scale utilization can create obvious economic returns…… Cost analysis of collection, transport and storage of straw
  • Table III-2.1.6 Trend comparison of bio-power cost Item Unit 25 MW straw-fired 6 MW bio-gasification Before After 2006 Before After 2006 2005 2005 Generating capacity kW 25,000 00000 00000 6,000 Running time h/Y 00000 6,500 00000 00000 IURE % 00000 00000 00000 8 Electricity for sales Million kWh/Y 146.25 00000 00000 00000 Biomass consumption Kg(dry)/kWh 00000 00000 1.25 00000 Moisture content % 00000 15 00000 00000 Raw material price USD/t 00000 43.92 00000 00000 Raw material consumption t/Year 00000 00000 00000 00000 Raw material cost Million USD/Y 5.58 00000 00000 2.27 Salary USD/Y 00000 00000 00000 00000 Operation cost USD/Y 00000 1,420,205 292,826 00000 Total cost Million USD/Y 00000 00000 00000 2.95 Electricity selling price USD/kWh 00000 0.0747 00000 00000 Note: IURE, Internal use rate of electricity Source: GIEC/CCM International IV Solid biofuel market IV-3 Achievements Table IV-3.3 Main manufacturer and index of screw extrusion machine No. Manufacturer/Research institute Machine type Efficiency (kg/h) 1 00000 00000 120~150 2 Shaanxi Wugong Light-Industry Machinery Factory 00000 00000 3 00000 JX-11 00000 4 00000 00000 120~140 5 Planning and Design Institute of Ministry of Agriculture 00000 00000 6 00000 ZBJ-11 00000 Source: GIEC/CCM International VII-2 Competitiveness analysis Fuel ethanol Large state-owned companies, such as COFCO, CNPC and Sinopec Corp., control the whole fuel ethanol industrial chain in China. COFCO has three subsidiaries for fuel ethanol production, and CNPC has two subsidiaries.
  • Table VII-2.1 Comparison of the 3 state-owned ethanol producers in China, 2009 Company Subsidiary Raw Capacity ’09 Current situation Strategy for fuel ethanol name material (t/a) COFCO 00000 Corn 00000 Major producer and the largest COFCO plans to take up 60% fuel ethanol shareholder of fuel ethanol capacity in China by 2010, mainly using cassava from00000 Zhaodong 00000 00000 00000 COFCO 00000 00000 200,000 Wholly owned by COFCO. The only fuel ethanol producer using cassava as raw material. CNPC 00000 00000 600,000 00000 00000 Henan Tianguan to develop commercial production of Jilin Fuel 00000 00000 CNPC is the largest shareholder. It second-generation fuel ethanol. Alcohol is the second largest fuel ethanol producer in China. Sinopec Corp. N/A N/A 00000 00000plans to establish fuel ethanol production line in Central China, using sweet potato as material. Source: CCM International