2. 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
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3. 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
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4. 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
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5. 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：
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6. 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
7. 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 ……
8. 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
9. 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.
10. 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
