Market Research Report : Biofuels Market in China 2010


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The China biofuels market, which includes bioethanol and biodiesel, is estimated to reach a production capacity of 10 mn and 2 mn tones by 2020 respectively. Biofuels has huge growth potential in China. Recently, domestic and foreign players have formed joint ventures to start developing second generation biofuels. The government is taking initiatives by investing in the development of marginal land on which non food crops can be grown for the production of biofuels. Demand for clean energy sources along with government’s support will drive the biofuels market in China.

The report begins with an introduction of biofuels market indicating different types of biofuels and its respective feedstocks. This is followed by an overview of the bioethanol and biodiesel market including its production capacity and different available feedstocks used for the same. It further talks about the development of second generation biofuels i.e. cellulosic ethanol.

An analysis of drivers explain factors contributing to the growth of biofuels market including depleting and dependency on oil reserves, rising automotive sector, degradation of environment, international partnerships and social impact. The key challenges identified include scarcity of land and water, and food security. Government initiatives have been discussed indicating the subsidies being given to develop the biofuel market.

Competition section provides brief profiles of major domestic and foreign players in the market. The section contains a snapshot of their corporation, financial performance and business highlights, providing an insight into the existing competitive scenario.

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Market Research Report : Biofuels Market in China 2010

  1. 1. Biofuels Market – China October 2010
  2. 2. Executive Summary Biofuels, as a carbon natural, has become a new and major source of energy for the future China is considered as the B largest producer of bioethanol in the world after C and D Market Biodiesel, as a transportation fuel, is being produced mostly from L as a feedstock M is considered as 2nd generation bioethanol fuel for transportation LE Drivers Challenges – Depleting and dependency on oil reserves – Scarcity of land and water Drivers & Challenges MP – Rising automotive sector – Degradation of environment – Food security – Social impact SA – International partnerships China provides a large range of subsidies and soft loans for the production of biofuels Government has changed its support policy from subsidizing producers to use crops towards Government encouraging the use of non food crop as a feedstock for biofuels Initiative It is expected that by 20--, subsidies on bioethanol and biodiesel will reach USD A mn and USD B mn respectively Competition in the market is steadily growing as a large number of domestic and foreign player are setting up their facilities in China Competition Major Domestic Players Major Foreign Players Company 1 Company X Company 2 Company Y BIOFUELS MARKET IN CHINA 2010.PPT 2
  3. 3. •Market Introduction •Market Overview •Drivers & Challenges •Government Initiative & Subsidies •Competition •Key Development BIOFUELS MARKET IN CHINA 2010.PPT 3
  4. 4. Chinese biofuels market mainly consist of bioethanol and biodiesel with cellulosic ethanol as a next generation fuel Biofuels 1st Generation 2nd Generation 3rd Generation 4th Generation • Feedstocks • Feedstocks PLE • Feedstocks • No clear definition for 4th generation biofuel M Corn Non-food crops Algae Wheat Inedible waste product – Botryococcus Braunii • Referred to as biofuel Oil seeds • Products Bioethanol Biodiesel • Products A Citrus peels Saw dust S Cellulosic ethanol – Chlorella Vulgaris Macroalgae • Products Algae fuel created other than 1st,2nd and 3rd generation biofuel • 4th generation biofuel technology includes pyrolysis, gasification, Vegetable oil Biohydrogen Bioether Biomethane upgrading, solar-to-fuel, and Solid biofuels Fischer-tropsch diesel genetic manipulation of Myco-diesel organisms to secrete hydrocarbons BIOFUELS MARKET IN CHINA 2010.PPT 4
  5. 5. Biofuels is expected to be the Chinese next generation transportation fuel Biofuels – Overview • Biofuels, with its characteristics of carbon natural, has become a new and major source of energy for the future Energy security concerns and search for an alternate source of energy has become a major concern for China – Dependency on crude oil has gone beyond A% in 20--, which is considered as the indicator of energy security alert LE • Strong demand for biofuels has led to many companies establishing their biofuels facilities in China Currently there are B licensed bioethanol fuel producers and more than C operational biodiesel plants in China P • Due to food security concerns, government is planning to introduce cellulosic ethanol, a 2nd generation biofuel Cellulosic ethanol uses only the non-edible part of plants or agricultural waste to make fuel M • Alage-based biofuel, a 3rd generation biofuel, has also been introduced into the market SA Air China, one of the nation's air carriers, is expected to supply its aircrafts with algae-based biofuel Biofuels Bioethanol Biodiesel Cellulosic ethanol Cellulosic ethanol is expected to be the future but • FE1 • FD1 • FC1 it is still at the Feedstock • FE2 • FD2 • FC2 development • FE3 • FD3 • FC3 stage BIOFUELS MARKET IN CHINA 2010.PPT 5
  6. 6. China is considered as the B largest ethanol producer after Country 1 and Country 2 Bioethanol – Overview Production Capacity • Ethanol is mainly produced and consumed for mn tones transportation in China D China is considered as the B largest ethanol producer after 10 8 a% Country 1 and Country 2 • Despite China’s huge production levels, availability of 6 bioethanol is restricted to areas where it is produced, 4 C E 2 A B hence the distribution channels are not well developed PL • As of 20--, nearly E% of bioethanol in China was being 0 20-- 20-- 20--e 20--e produced from corn production of biofuel SAM • Government has started emphasizing on the use of non-food crops as majority of crops are used in the Available Feedstock for Bioethanol 200 MT Crop 1 Crop 2 Crop 3 150 • Due to high seed yield and stem yield, Crop 3 is Crop 4 expected to be the future for bioethanol in the long 100 term (20-- to 20--) 50 0 20-- 20-- 20-- 20-- 20-- BIOFUELS MARKET IN CHINA 2010.PPT 6
  7. 7. Drivers Depleting and dependency on oil reserves Challenges Rising automotive sector Scarcity of land and water Degradation of environment Food security International partnerships Social impact BIOFUELS MARKET IN CHINA 2010.PPT 7
  8. 8. Domestic Players in the Market (1/7) Company Snapshot: Company 1 Corporate Information Financial Performance USD bn Total Revenue USD bn Headquarters Place A 8 Net Profit 0.4 Products Product X 6 0.3 4 0.2 Founded 20-- 2 0.1 Key People Person Y 0 0.0 20-- 20-- 20-- 20-- Business Highlights PLE • Company 1 engages in the production, processing, and distribution of agricultural products and related businesses M Its biofuel and biochemical segment engages in the production and sale of biofuel, biochemical, and related products A • As of June 20--, the company operates X plants, one each in Place 1 and Place 2 ethanol alone accounts for C mn metric tons S The plants have a combined capacity of B mn metric tons of fuel ethanol, consumable ethanol and anhydrous ethanol of which, fuel • It is one of China’s major fuel ethanol producers which operates the business through two subsidiaries, namely Company 2 and Company 3 BIOFUELS MARKET IN CHINA 2010.PPT 8
  9. 9. Thank you for the attention The Biofuel Market - China report is part of Netscribes’ Cleantech Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 96191 00122 Phone: +91 98303 09715 E-Mail: E-Mail: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. BIOFUELS MARKET IN CHINA 2010.PPT 9