103
Bioethanol production initially utilized old grains in stock. The production was
mainly from corn and partially from wheat at four designated state-owned plants in
Heilongjiang, Jilin, Henan, and Anhui provinces. However, in May 2007, bioethanol production from corn and wheat was capped by the government, which stopped
approving new bioethanol production from food for fear that food-based ethanol
production would cause food prices to increase (Sun 2007; Huang et al. 2008).
To supplement biofuel production, cassava was identified as one of the most
promising nonfood feedstocks to produce bioethanol. In 2008, the government
approved a new state-owned facility to produce bioethanol from cassava in Guangxi
province (USDA 2008). The province was once known for its large-scale cassavaproducing region, but the cassava industry was suffering from low prices for fresh
cassava as well as starch. Therefore, biofuel production from cassava was expected
to create employment and improve livelihoods in the region. However, the production of cassava has not been enough to meet domestic demand, and actually the
bioethanol company imported feedstock from Thailand and Vietnam (GSI 2008;
USAID 2009). The reality is that the majority of bioethanol will be produced from
corn and wheat for the near future (GSI 2008).
Bioethanol blending mandates have been implemented in ten provinces, including one autonomous region. Province-wide blending mandates (E10) were first
introduced in 2005 in five provinces (Heilongjiang, Jilin, Liaoning, Henan, and
Anhui) which have bioethanol plants located in or near the province (GTZ 2006).
Blending mandates then expanded to additional cities in four neighboring provinces
(Hebei, Hubei, Shandong, and Jiangsu). In April 2008, after the government capped
bioethanol production from food, Guangxi Zhuang Autonomous Region became the
tenth province to introduce province-wide blending mandates. It was the first case
of ethanol production from cassava (People’s Daily Online 2008).
8.4.2.2 Biodiesel
The total volume of biodiesel produced in 2007 was reported at 300,000 tons, which
was on a smaller scale compared to bioethanol (ERI 2008; USDA 2008; F.O. Licht
2009). There were a dozen operating plants using waste oil as a feedstock and 20
planned plants which will operate on not only waste oil but also other feedstocks
such as Jatropha as of 2008 (Huang et al. 2008; Morimoto 2008; USDA 2008). The
production capacity of each plant is relatively small due to an insufficient supply of
feedstock. China is a net importer of vegetable oil, and there are difficulties in feedstock collection and marketing (Huang et al. 2008; USDA 2008).Unlike bioethanol,
there are no blending mandates for biodiesel. There are voluntary standards for
100% biodiesel (JIE 2008; USDA 2008), and a standard for 5% (B5) was introduced in 2010.
Nevertheless, a number of large companies planned to invest in biodiesel production. In 2008, the NDRC approved three state-owned plants to produce biodiesel
from Jatropha to be implemented by either PetroChina or Sinopec in Sichuan,
Guizhou, and Hainan provinces. Out of 32 plants (both operating and planned),
8 Socioeconomic Impacts of Biofuels in East Asia
Bioethanol production initially utilized old grains in stock. The production was
mainly from corn and partially from wheat at four designated state-owned plants in
Heilongjiang, Jilin, Henan, and Anhui provinces. However, in May 2007, bioethanol production from corn and wheat was capped by the government, which stopped
approving new bioethanol production from food for fear that food-based ethanol
production would cause food prices to increase (Sun 2007; Huang et al. 2008).
To supplement biofuel production, cassava was identified as one of the most
promising nonfood feedstocks to produce bioethanol. In 2008, the government
approved a new state-owned facility to produce bioethanol from cassava in Guangxi
province (USDA 2008). The province was once known for its large-scale cassavaproducing region, but the cassava industry was suffering from low prices for fresh
cassava as well as starch. Therefore, biofuel production from cassava was expected
to create employment and improve livelihoods in the region. However, the production of cassava has not been enough to meet domestic demand, and actually the
bioethanol company imported feedstock from Thailand and Vietnam (GSI 2008;
USAID 2009). The reality is that the majority of bioethanol will be produced from
corn and wheat for the near future (GSI 2008).
Bioethanol blending mandates have been implemented in ten provinces, including one autonomous region. Province-wide blending mandates (E10) were first
introduced in 2005 in five provinces (Heilongjiang, Jilin, Liaoning, Henan, and
Anhui) which have bioethanol plants located in or near the province (GTZ 2006).
Blending mandates then expanded to additional cities in four neighboring provinces
(Hebei, Hubei, Shandong, and Jiangsu). In April 2008, after the government capped
bioethanol production from food, Guangxi Zhuang Autonomous Region became the
tenth province to introduce province-wide blending mandates. It was the first case
of ethanol production from cassava (People’s Daily Online 2008).
8.4.2.2 Biodiesel
The total volume of biodiesel produced in 2007 was reported at 300,000 tons, which
was on a smaller scale compared to bioethanol (ERI 2008; USDA 2008; F.O. Licht
2009). There were a dozen operating plants using waste oil as a feedstock and 20
planned plants which will operate on not only waste oil but also other feedstocks
such as Jatropha as of 2008 (Huang et al. 2008; Morimoto 2008; USDA 2008). The
production capacity of each plant is relatively small due to an insufficient supply of
feedstock. China is a net importer of vegetable oil, and there are difficulties in feedstock collection and marketing (Huang et al. 2008; USDA 2008).Unlike bioethanol,
there are no blending mandates for biodiesel. There are voluntary standards for
100% biodiesel (JIE 2008; USDA 2008), and a standard for 5% (B5) was introduced in 2010.
Nevertheless, a number of large companies planned to invest in biodiesel production. In 2008, the NDRC approved three state-owned plants to produce biodiesel
from Jatropha to be implemented by either PetroChina or Sinopec in Sichuan,
Guizhou, and Hainan provinces. Out of 32 plants (both operating and planned),
8 Socioeconomic Impacts of Biofuels in East Asia