COFCO Accelerating Construction of Cellulosic Ethanol Producion LineSummary: COFCOs first phase of the cellulosic ethanol ...
In addition to COFCO, some other companies also seek to get the market share of the cellulosicethanol industry because of ...
cellulosic ethanol value chain, including the construction of the cellulosic ethanol production linein domestic market and...
product, company & market dynamics, and government regulations, aiming to facilitate yourinsight into Chinas industrial bi...
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Cofco accelerating construction of cellulosic ethanol producion line

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COFCO's first phase of the cellulosic ethanol production line will lay a foundation in Zhaodong, in December 2011.

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Cofco accelerating construction of cellulosic ethanol producion line

  1. 1. COFCO Accelerating Construction of Cellulosic Ethanol Producion LineSummary: COFCOs first phase of the cellulosic ethanol production line will lay afoundation in Zhaodong, in December 2011.Tags: cellulosic ethanol, production, capacity, COFCO, Biochemical Energy, cellulosic enzyme,Celic CTec2, Jilin Alcohol, DuPontThe first phase of the cellulosic ethanol production line with capacity of 50,000t/a in COFCOCorporation (COFCO) will lay a foundation in Zhaodong, in December 2011, according to Ms. Li,the manager in charge of this production line in COFCO Biochemical Energy (Zhaodong) Co.,Ltd. (COFCO Zhaodong), revealing in CCM’s September Issue of Industrial BiotechnologyChina News.COFCO, Chinas largest supplier of diversified products and services in the agribusiness and foodindustry, invested USD156.7 million in the production line of cellulosic ethanol with capacity of100,000t/a on July 12, 2011.Ms. Li claimed that the production line would be launched in the first half of 2013, which meansthat it would be the first one to achieve the cellulosic ethanol industrialization in China. At present,COFCO Zhaodong, the subsidiary company of COFCO, is in charge of this new production line.The production line of cellulosic ethanol in COFCO Zhaodong had been in the pilot phase withcapacity of 500t/a from 2007 to 2011, so as to reduce the cost effectively. So far, the cost ofcellulosic ethanol is USD956/t, lower than that of the cost of USD3,134/t in 2006.This hugedifference in the cost of cellulosic ethanol mainly depends on the cost of the cellulosic enzyme. Inthe past few years, how to reduce the cost of cellulosic ethanol production is the bottleneck of thecellulosic ethanol development.COFCO cooperates with Novozymes on the research of cellulosic enzyme. Thanks toNovozymes, COFCO has a great success in the cost reduction of cellulosic ethanol production atpresent. Cellulosic enzyme, Novozymes proprietary, plays an important role in the cost reduction.Celic CTec2, a new product of Novozymes, can not only shorten the fermentation time, but alsoreduce the outcome of byproducts. Hailong Lin, general manager assistant in COFCOBiochemical Research Institute of R&D Center, disclosed that the cost of cellulosic ethanol wasnearly the same as the cost of gas. Furthermore, the thermal value of cellulosic ethanol is 3%lower than that of gasoline, but the combustion efficiency is 1.2% more, according to Mr. Li. Itmeans that the energy generated by 1.018 liter of cellulosic ethanol is equal with the energy of 1liter of gasoline.
  2. 2. In addition to COFCO, some other companies also seek to get the market share of the cellulosicethanol industry because of its bright future.Jilin Alcohol Co., Ltd. (Jilin Alcohol), after a long pilot phase of cellulosic ethanol, will plan toconstruct a new cellulosic ethanol production line with capacity of 30,000t/a. Although COFCOowns 20% share of Jilin Alcohol, Jilin Alcohols production line brings pressure to COFCOZhaodong, according to Ms. Li. This production line will be constructed after the internaldiscussion at the end of 2011, according to a staff from Jilin Alcohol. Also, Henan TianguanAlcohol Co., Ltd., one of the COFCOs competitors, has enlarged its capacity from 5,000t/a to10,000t/a in 2008-2011. In addition to the domestic enterprises, DuPont, one of the biggesttransnational companies, seeks the opportunities for cooperation with some domestic companieswhich have the capability to construct a cellulosic ethanol production line in China.Therefore, both the domestic companies and internationally renowned enterprises have to facethe intense competition in the market of Chinas cellulosic ethanol industry.Thanks to cellulosic ethanols great potential, which can replace the petroleum gradually, theChinese Central Government and the U.S. Government will launch the relevant policy to supportthe development of cellulosic ethanol industry.The Chinese government has repeatedly stressed the importance of cellulosic ethanol industry.Now the Chinese government will increase the investment of R & D in cellulosic ethanolsproduction technology, in order to speed up the cellulosic ethanol industrialization during2011-2015, revealed by a expert who participates in the edition of "biomass development in theTwelfth Five -Year Plan".Moreover, On August 18, the US President Obama declared that the US government planed toinvest USD510 million in promoting the development of cellulosic ethanol industry. Under thesolid back-up support, there will be great prospects for its development in future.Not just in terms of environmental protection and energy resources, the development of cellulosicethanol industry will bring a huge social and economic benefit to China, according to a researchreport, written by Novozymes and McKinsey.The cellulosic ethanol industry will not only create 6 million job opportunities in China, but it willalso bring USD5 billion revenue from the cellulosic ethanol market. It is reported that cellulosicethanol will replace 31 million tonnes of gasoline per year, which can reduce 10% of the gasolineimport in China. The report believes that Chinas enterprises will be the main beneficiaries in the
  3. 3. cellulosic ethanol value chain, including the construction of the cellulosic ethanol production linein domestic market and the potential international market with value of USD15 billion.The production technology of fuel ethanol has developed fast during the past 10 years, from grainethanol in 2001 to cellulosic ethanol in 2011. Cellulosic ethanol, representing a high-end cleanenergy, can replace the traditional grain ethanol. In fact, Japanese nuclear accident makespeople concern more about the development of clean power. People are attracted by cellulosicethanol because of its advantage of the widespread raw materials without pollution. Thedevelopment of cellulosic ethanol is urgently needed in China in the future, especially theresources of gasoline that become rare and the serious environmental deterioration.Source: Industrial Biotechnology China News 1109http://www.cnchemicals.com/Newsletter/NewsletterDetail_21.htmlMain content of Industrial Biotechnology China News 1109:Wuhan Kaidi invests in biomass powerCOFCO accelerating the construction of cellulosic ethanol producion lineQIBEBT will finish the pilot phase of algae diesel production in 2012Miscanthus to be an ideal bioenergy crop in ChinaA breakthrough on lipase-based biodieselJiangsu Sopo to launch a syngas ethanol production lineChina to publish Twelfth Five-Year Plan of Biotechnology IndustryKingdomway seeking DHA development when facing with predicamentsOverview of Nisin development in ChinaTrade analysis of butanol in ChinaRapid expansion of starch-based biomaterials in Long SuccessKingfa PBSs additional fundraising passed by SFCTrade analysis of PLA in ChinaIndustrial Biotechnology China News, a monthly publication issued by CCM International on8th of every month, focuses on biofuels, bio-products, bio-based chemicals, bio-materials andindustrial biotechnology applications, offers latest investment hotspots, new technology &
  4. 4. product, company & market dynamics, and government regulations, aiming to facilitate yourinsight into Chinas industrial biotechnology.Please visit http://www.cnchemicals.com for more information or contact us atecontact@cnchemicals.com.

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