# Presentation: 358860

## Outlook of COFCO & China Non-grain Fuel Ethanol

**Outlook of COFCO & China Non-grain Fuel Ethanol**

## Fuel Ethanol Producing Enterprises & Their Layout in China

**Fuel Ethanol Producing Enterprises & Their Layout in China**

## 注:2006年河南天冠的产量包含其外购的乙醇量。

| Name | Approved Capacity
(thousand tons) | Production (thousand tons) | Actual Production (thousand tons)
 | Targeted Sales Area |
| --- | --- | --- | --- | --- |
| Cofco Zhaodong | 100 | 400 | 140 | Heilongjiang Province (only) |
| Jilin Fuel Ethanol | 600
(first stage 300) | 500 | 380 |   Jilin & Liaoning Provinces(only)
 |
| Henan Tianguan | 300 | 450 | 470 | Hena Province, 4 cities in Hebei and 9 cities in Hubei(only)
 |
| Fengyuan Bio-chemical | 320 | 320 | 330 | 
Anhui Province, 5 cities in Jiansu, 7 in Shandong, and 2 in Hebei
 |
| Cofco Guangxi | 200 | 200 | Preparing | Guangxi |

**Production & Sales of Chinese Fuel Ethanol Enterprises in 2006**

**注:****2006****年河南天冠的产量包含其外购的乙醇量。**

**Ethanol Production by Cofco in 2006 was 470,000 tons, 35% of the national total of 1.33million tons. **

## China’s climate ranges from frigid and temperate zones to tropical zone and its annual rainfall varies form less than 100mm to 2400mm in different areas.

- China’s per capita arable land is only 1.4 mu, 1⁄4 of the international average of 5.5 mu.

- China’s per capita grain possession is 318kg, only 1⁄4 of that in America—1,213kg.

- Based on these facts, China adopted the principle of No Competing for Grains with People and for Land with Grains in order to achieve sustainable development.

- China’s climate ranges from frigid and temperate zones to tropical zone and its annual rainfall varies form less than 100mm to 2400mm in different areas.

- Its altitude differs from the one of World Roof to 158m negative.

**Therefore, it proposed the principle of development with multi-material. **

**Facts about Per Capita Arable Land & Grain Possession **

**Climate & Altitude**

- Grains

**Non-grains**

**Outlook of China’s Fuel Ethanol Development**

## Options for Fuel Ethanol Material

**Options for Fuel Ethanol Material**

**Fuel Ethanol**

- G1Fuel Ethanol

- Corn-based

- Wheat-based

- G1.5Fuel Ethanol

- Sweet sorghum-based

- Sweetpotato-based

- Tapioca-based

- G2Fuel Ethanol

**Corn-stems-based**

**Other bio-mass based**

- Grains

- Non-grains

- Considering the conditions in China, the key area in future development will be non-grain-material-based fuel ethanol.

## Fibre Quantity in China

- The above data are from MOA and State Administration of Forestry

- II. Progress has been made in the research and development of China’s fibre-based ethanol technology. Cofco has worked with Danish companies to set up pilot equipments with an annual production of 5million tons. BBCA also set up pilot equipments with an annual production of 3million tons.

## I. The process of bio-mass utilization like stems is to degrade polysaccharid , i.e, cellulose and hemicellulose into monosaccharide such as glucose and xylose, and then transfer them into the target products. Ethanol is the most successfully commercialized micro-biotical fermented product. 

- II. But the fibre-based ethanol technology faces with the following three bottlenecks:
- inefficient bio-mass pre-processing technology for stems;
- high cost of degrading cellulose into glucose;
- and lack of micro-fungi that can efficiently produce ethanol out of pentose and hexose.
- III. The Chinese government is actively promoting the prototype project in order to conquer the technical difficulties as soon as possible, to increase the competitiveness of fibre-based ethanol to the similar level of energy plants gradually, and thus to create preferential conditions for scale production and comercializaion.

**Three Technical Bottlenecks during **
**the Industrialization of Fibre-based Ethanol Production**

- Cofco aims to overcome the above technical bottlenecks and to realize the goal of industrialized production in 2012.

## Unit Ethanol Production of Different Feedstock in China

| Materials |  | Material Consumption/
Ton of Fuel Ethanol (Ton) | Starch or Sugar Contents | Yeild per mu | Arable land Needed/Ton of Fuel Ethanol(mu) |
| --- | --- | --- | --- | --- | --- |
| Corn | 3.22 |  | 64% | 0.4 | 8.05 |
| Wheat | 3.9 |  | 60% | 0.31 | 12.58  |
| Rice | 3.93 |  | 54% | 0.42 | 9.36  |
| Tapioca | 7 |  | 25% | 2 | 3.5 |
| Cane | 14.9 |  | 12.50% | 4.57 | 3.26  |
| Sweet Potato | 8.6 |  | 20% | 2 | 4.37 |
| Sweet Sorghum | 12.5 |  | 16-22% | 6 | 3.1 |
| Molasses  | 4.50  |  | 42-50% | 13.71  | 9.78  |

**Analysis of China’s Non-grain Materials (I)**

## Energy/Production (E/P) Ratio of Different Agricultural Plants

|  | E/P Ratio | Notes |
| --- | --- | --- |
| Corn-based Ethanol | 1:1.26-1.3 | The data is given by US Energy Bureau, USA and UC Berkeley. |
| Tapioca-based Ethanol | 1:1.3-1.4 | Tapioca can grow in barren areas and need less fertilizer and irrigation than grain products like corn. In this sense, little energy consumption occurs in its plantation. |
| Sweet sorghum-based Ethanol | 1:1.65 | Sweet sorghum features good adaptation to barren land, flood and drought with less input during plantation.  |
| Cellulose-based Ethanol | 1:10 | The result of the cellulose-based ethanol E/P ratio was released by UC Berkeley in 2006.  |

-     As demonstrated in the above figure, the E/P ratio of non-grain agricultural products is generally lower than that of grain products, especially that of cellulose-based ethanol, which is the lowest and the most economic one.

**Analysis of China’s Non-grain Materials (II)**

## Roadmap for China’s Fuel Ethanol Material Development

- 2004

- 2005

- 2006

- 2007

- 2008

- 2009

- 2010

- 2011

- 2012

- 2013

- 2014

- 2015

- Food grain

- Sweet sorghum,
- sweet potato, tapioca

- cellulose

**Roadmap for China’s Fuel Ethanol Material Development**
- To stabilize grain-based ethanol production;
- to prioritize the production of non-grain-based ethanol, such as potatoes and sweet sorghum;
- And to increase the technical level of cellulose-based ethanol production.
**    **

- Scale production based on different materials (such as G1.5, G2) will start according to the variation of quantity and technical progress.** **

##      Thank You!

*     **Thank** **You**!*