The current situation of fuel ethanol in China Dehua LIU Department of Chemical Engineering Tsinghua University , Beijing, China Sep. 15, 2005

Outline Background Biomass resources Development status National plan on renewable energy development Conclusions

I. Background China decided to launch bioethanol program in 2000. It was driven by at least three issues: fuel shortage air pollution developing rural economy

Source:Workshop-seminar, 23-25 May, 2005, MEKARN-CTU. I. Background The difference in the rate of discovery of oil and the rate of oil use in the world Source:Workshop-seminar, 23-25 May, 2005, MEKARN-CTU. Implications for livestock production of the decline in world oil reserves. R A Leng and T R Preston.

I. Background China imported 0.2 percent of the total petroleum consumption in the world in 1990, while imported 5.1 percent of that in 2003. (It was increased by 25-folds in 13 years.) China share about 40 percent of world newly increase of petroleum consumption.

I. Background China’s Petroleum Balance in Selected Years 正是由于国内成品油价格调整滞后“牺牲”了各大炼厂的利益，目前各炼厂生产积极性均不高，从而导致社会局部供应吃紧，进口减少、出口加大的奇怪现象。2005年1-6月份，国内成品油进口量1573万吨，同比下降20.9%；出口量758万吨，同比增长48.6%；出口金额31.5亿美元，同比增长96.9%。 05-8-22 [石化炼焦]炼油行业　静待定价机制改革-长江证券  卞曙光 Data in 2005 is expected China’s Petroleum Balance in Selected Years

I. Background In 2004, China’s oil consumption was approximately 318 million tons，accounting for 23% of the consumption of primary resource. According to IEA statistics, China is the 2nd largest oil consumer in the world.

I. Background Source：web of China Petrochemical Corporation

I. Background 00 02 04 In 10,000 tons China gasoline production and vehicular consumption in selected years

I. Background 00 02 04 China diesel production and vehicular consumption in selected years In 10,000 tons

I. Background 1990compared with 1985 2000compared with 1990 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Total Private vehicle 10,000 units Increase fold/annual rate Total Truck Passenger vehicle Special vehicle Private vehicle 1990compared with 1985 1.72 11.4％ 1.6 2.0 1.7 2.9 23.7% 2000compared with 1990 11.2％ 1.9 5.3 1.8 7.7 22.6％ 2004compared with 2000 14.3％ -- 2.2 21.6％ ，从1994年到2004年的10年间，全国民用汽车保有量从941.5万辆增加到2742万辆，年均增长11.3%，其中私人汽车拥有量从205.42万辆增加到1365万辆，10年增长近6倍。

I. Background In 2004, China’s car ownership was approximately 28 million with an average annual growth rate of 15% from 2000 to 2004. China’s total car ownership is estimated to reach 100 million in 2020 with an average annual growth of 8%-9% from 2004 to 2020. Source：web of China Petrochemical Corporation

Air Pollution in Beijing Among world wide great cities: TSP content : Beijing ranks second NO2 content: Beijing ranks second SO2 content: Beijing ranks third Great efforts are being made by the local government to improve the environments quality

I. Fuel Ethanol in China Background TSP content NO2 content SO2 content

I. Background The income of per-capita urban residents grew by 整体来看，2004年农民增收主要得益于“涨价增收”和“增产增收”。专家分析，2005年，由于农民增收的支撑基础较为脆弱，农民增收前景不容乐观。国务院发展研究中心农业部专家崔晓黎预测：2005年农民增收的幅度和绝对量不会比2004年大，应该低于6％ The income of per-capita urban residents grew by 9.3 % in 2003, but only 4.3% for rural residents

II. Biomass resources In 1990s, more than 80 percent of ethanol was made from grains including corn, cassava, rice etc. About 10% from sugar, 6% from paper pulp waste residue, and the rest from ethylene by synthetic process

Feedstock for bioethanol production In 2001 – 2003, about 500 M tons of grain was produced averagely in a year During the same period, about 30 – 35 M tons of potato-typed products was produced averagely in a year Sugar cane: average annual production during 2000 – 2003 was 75 M tons. Sweet sorghum: mainly trial plantation at present 没有找到04年相关统计资料

II. Biomass resources By the end of 2004, the proportion had changed a lot, about 48% from corn, 19% from sugar, and the rest (33%) from cassava.  中国食品产业网 2004-6-16-2004年全国酒精产量和市场格局预测

Corn Sugar cane Cassava Sweet sorghum

III. Development status of bioethanol Tianjin Jilin Heilongjiang Jiangsu Anhui Shandong Henan Guangxi Sichuan Yunnan 10,000 tons China ethanol industry is comprised of over 200 production facilities in 11 provinces capable of producing more than 10 million tons of ethanol each year. Bioethanol production capacity will surpass 1.0 million tons by 2005. Source: WANG Yijing, QIN Renwei. Outlines on technical materials of alcohol industry

III. Development status of bioethanol Global tendencies in the production of alcohol (Berg 2003). Source: R.A. Leng Implications of the decline in world oil reserves for future world livestock production. As same as below 随便加的，请考虑是否需要

III. Development status of bioethanol

Retrofit of Existed Plants Development status of fuel ethanol Retrofit of Existed Plants Jin YU Inc., Helongjiang Province in North-east China (100,000 t/y), Tian Guan Group, Henan Province in Mid-China (200,000 t/y)

Building New Plants Development status of fuel ethanol Jilin Province in North-east China (600,000 t/y) Fengyuan Group, Anhui Province in East China (320,000 t/y) Tianguang Group in Henan Province (300,000 t/y)

JILIN FUEL ETHANOL Co., LTD Saccharification FLOW Fermentation FLOW Destillation FLOW Dehydration FLOW

Fermentation

Destillation

Dehydration

Henan Tianguang Group

Tianguan FUEL ETHANOL Co., LTD 300,000 t/y

Expansion of Gasohol application By the end of 2005, the total E10 consumption will reach more than 10 million ton, which equals about 1/4 of total gasoline consumption Totally Partially 扩大试点范围包括黑龙江、吉林、辽宁、河南、安徽 5省及湖北、山东、河北和江苏 4省的部分地区。 据悉 ,此次扩大试点车用乙醇汽油所需变性燃料乙醇包括吉林燃料乙醇有限责任公司 3 0万吨 /年 (一期 )、河南天冠集团 3 0万吨 /年、安徽丰原生物化学股份有限公司 3 2万吨 /年和黑龙江华润 酒精有限公司已投产的 1 0万吨 /年变性燃料乙醇。 Source:Economic Information Daily.2004-2-25 & Business Tourism Daily 2004-3-23

Biodiesel So far specification and incentive policy on biodiesel has not been issued, it is expected to be published soon; A few small plants (capacity from 5 to 20 thousand tons per year) had been built and are running for biodiesel production; The feedstock used for biodiesel production include waste cooking oil, some oil from oily plant; Part of biodiesel products were exported abroad; A lot of technological researches are being conducted.

IV. National plan on enewable energy development By 2020, power generation by renewable energy will reach 100 GW, and take up to 10% of the total, among which, wind power, small hydropower, and biomass fueled power will be 20 GW, 50 GW, and 20 GW, respectively. By 2020, annual production capacity of liquid biofuels(ethanol & biodiesel) will reach 11 M tons. Chinese law on renewable energy has been issued.

IV. National plan on renewable energy development As forecasted, if maintaining the existing vehicles structure and fuel consumption of each vehicle, about 100 M vehicles will be used and 228 M tons of gasoline and diesel will be consumed in China in 2020. Blending 10% of biofuels in fossil gasoline and diesel in 2020, then the biofuels demand will reach 22.8 M tons. That is, the targeted capacity(11M tons) at the national development plan will only satisfy about 50% of the total consumption (when blending 10% in all the used fuels).

IV. National plan on renewable energy development Considering the food security, it is better to use non-food related crops as the material for bioethanol production. According to different local situation, efforts should be made on bioethanol production with multiple types of raw materials. To promote the biofuel production and application in a greater efforts, such as enlarging the planed target on bioethanol production (80% even all provinces will use blended gasoline).

V. Conclusions The driving force of developing bio-fuels includes petroleum shortage, air pollution and developing rural economy; Considering the safety of grain supply, China will develop fuel ethanol step by step, and encourage the development of ethanol production from non-grain substrate; China government has been paying more and more attention on the substitute energy, specially renewable energy, including biofuels.

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