China's biofuel industry faces four major challenges

Biofuels, usually referred to as biological liquid fuels, are important alternative fuels for transportation. Compared with other alternative fuels, biofuels have the advantages of good compatibility with existing infrastructure, high energy density, clean and low-carbon resources, renewable resources, and a broad resource base. They have practical experience in large-scale production applications and are expected to become The most economically viable clean alternative fuel for long-distance vehicles such as heavy trucks, shipping and aviation.

Since the 1990s, in order to ensure energy security, address climate change, protect the environment, and promote agricultural development, many countries have formulated active strategies and policies to promote the development and utilization of biofuels. China is also facing enormous challenges in all the above areas. It also urgently needs to formulate strategies and policies that are in line with China's national conditions and promote the development of biofuels on a large scale.

To this end, the Energy Research Institute of the National Development and Reform Commission has launched a “Research on the Development of Renewable Energy in China”, which will assess the development potentials and major challenges of biofuels in the world by examining and analyzing the development trends and policy practices of the biofuel industry in the world. The strategic mission, overall thinking and development path for the development of China's biofuels in scale, and proposals for policies and measures to promote the development of China's biofuel industry.

International Policy Trends - Equal Support and Supervision

Since the 1990s, in order to promote the agricultural economy, improve the air quality, and reduce greenhouse gas emissions, many developed countries and developing countries represented by the United States, European Union countries, and Brazil have formulated and implemented unprecedented scale biofuel projects and active support. Policies have fully promoted the vigorous development of the biofuel industry. Although the 2008 financial crisis has been affected by low oil prices and weak market demand, the support policies of various countries have continued and deepened. Large oil companies have begun to step in and technology research and development have made positive progress. The application field has expanded into the aviation field and has promoted The fuel industry accelerated its upgrading and transformation and continued to expand its scale.

At present, fuel ethanol and biodiesel (usually referred to as traditional biofuels, or first-generation biofuels) based on grain, sugar, and oil have entered the stage of commercialization, with agricultural and forestry organic waste, and dedicated non-food energy plants/ Advanced biofuels (or second-generation and third-generation biofuels) with biomass as raw materials such as algae microorganisms are currently constructing a number of demonstration projects and are expected to be gradually commercialized within the next 10 years. In 2009, the global production of fuel ethanol and biodiesel reached 57.6 million tons and 15.9 million tons respectively, with the vast majority concentrated in the United States, Brazil, and the European Union. According to the International Energy Agency (IEA) biofuels roadmap analysis, the global biofuel production in 2010 is about 100 billion liters, which meets 3% of global road transportation fuel demand; in 2050, biofuels can meet 27% of global transportation energy demand, Reducing 2.1 billion tons of carbon dioxide.

Although biofuels have developed rapidly in recent years and have initially demonstrated vast potential for development, they have also begun to cause many controversies and criticisms, mainly on the benefits and potential for energy conservation and emission reduction of biofuels, as well as on food security and the ecological environment. It reflects the complexity of the biofuel industry itself and its socioeconomic implications.

In recent years, some leading countries and international organizations have actively promoted the establishment of a policy system that emphasizes both support and supervision to promote the healthy and sustainable development of the biofuel industry. In supporting policies,

In the early days, measures such as investment subsidies, reduction of excise taxes and fuel taxes were adopted. In recent years, many countries in the United States and the European Union have introduced mandatory market share policies such as the Renewable Fuel Standard (RFS), and specifically specified the specific development goals of advanced biofuels and more. High contribution. In terms of regulatory policies, European and American countries have started to regulate the minimum greenhouse gas emission reduction rate for biofuels in recent years, adjusted agricultural and land policies, and promoted the establishment of sustainable production standards and product certification systems; some developing countries, including China, prohibit the use of It is forbidden to expand the use of food materials to ensure sustainable development.

China's biofuel production potential is great

As China's population keeps growing and the dietary level continues to increase, and because of the reduction of good arable land and relative shortage of water resources, the potential of using traditional grain, sugar, and oil feedstocks to develop biofuels is very limited in our country. The use of non-food materials will be the fundamental direction for China's development of biofuels.

China started research on biofuel production technology using sweet sorghum and jatropha as raw materials as early as the 1990s. Since the “11th Five-Year Plan”, a large number of companies, including large companies, have actively participated in the research and development of the non-food biofuel industry. At present, China's use of potato, sweet sorghum, Jatropha and other non-food crops / plants to produce fuel ethanol and biodiesel technology has entered the demonstration stage. Cassava and sweet potato ethanol technology can also be used commercially. In 2007, Guangxi completed an annual output of 200,000 tons of cassava ethanol project. The development of sweet sorghum ethanol technology has made substantial progress. High-quality hybrid seeds have been developed, and the independently developed fermentation processes and technologies have reached a practical level, and a demonstration plant with an annual output of 5,000 tons of ethanol has been built in Heilongjiang Province. Lignocellulosic ethanol has made substantive progress in raw material pretreatment, cellulose conversion, and production costs of enzyme preparations. It has built demonstration production facilities that produce hundreds of tons and thousands of tons of ethanol annually in Heilongjiang and Henan. The timing of the demonstration of biodiesel industrialization has also basically matured. However, due to the restrictions on the collection and utilization of waste oil resources and the construction schedule of oil plant cultivation bases, only a small number of biodiesel companies have achieved continuous production at large scale, and they have not officially entered the finished automotive products. The main circulation system of oil. Other second-generation biofuels (such as synthetic fuel technology) are still in the laboratory research and small-scale pilot stage.

At present, China has not fully and thoroughly carried out the assessment of biomass energy resource potential. According to preliminary estimates, the use of waste molasses, food processing industry, and catering oil, cottonseed oil, and other waste sugar and oil resources, is estimated to meet the demand for raw materials for annual production of 800,000 tons of fuel ethanol and more than 2 million tons of biodiesel. The annual output of crop straws and forestry residues that can be used for energy utilization is currently about 250 million tons, and is expected to continue to increase. In the medium to long term, it can meet the demand for raw materials for second-generation biofuels with an annual output of 30 to 50 million tons. In addition, energy plants such as sweet sorghum, cassava, and jatropha can also be developed through the promotion of good breeding methods, variety replacement, and development of inferior marginal lands. The relevant land assessment shows that there are approximately 32 to 76 million hectares of marginal land in China, but land resources suitable for the growth of energy plants have yet to be ascertained.

According to the overall estimation, the potential of fuel ethanol production from non-edible grain and sugar crops in China is approximately 15 million tons in the near-to-medium term, and the potential for biodiesel production using waste oil as raw material is approximately 2 million tons in the medium-to-mid-term. The potential for diesel production is about several million tons in the mid-to-long term, and the potential for the production of advanced biofuels based on cellulose and algae biomass can reach tens of millions of tons per year in the long term.

Through the development of traditional biofuels, it is estimated that there will be nearly 10% of the potential for road transportation fuels in the near-to-middle period; if the second-generation biofuel technology is to be commercialized, China’s biofuels will have about 20% to 30% of road traffic in the long-term. The potential for fuel demand.

4 major problems to be solved

In the future, China's biofuel industry will face the following four major challenges:

(1) The raw material resources are still weak. The actual remaining available marginal land resources have unclear potential, lack of scientific evaluation and planning, and the breeding and scale cultivation of raw materials and planting techniques, industries, and management systems are still to be improved; raw material resources are of diverse sources and of different quality.

(2) The level of development of the technology industry is not high. The technological level is relatively backward; the level of resource utilization and environmental protection is not high; the complete set of technical processes and equipment that meet the characteristics of domestic raw materials are lacking; the second-generation biofuel technology still has a large gap from industrial production; the industrial model is still immature and remains to be determined. Establishing an industrial model for harmonious development of “agriculture, countryside and farmers” and modern forestry; the technical specifications and models for sustainable production have not yet been established, and research on improved seed selection and mixed forest construction techniques still needs to be conducted to formulate technologies that ensure high energy efficiency and high emission reductions. Standards and specifications.

(3) Lack of competitiveness and ability to resist risks. High raw material costs are even higher; economies of scale, economies of scope, and overall utilization of resources are low; economic competitiveness is weak and there are major market risks.

(4) Support policies and market environment are not perfect. The non-food biofuel market access and product circulation system are not smooth and can not enter the vehicle oil product distribution system and end consumer market; industry supervision is weak, there are social, economic and natural ecological risks; support prices and fiscal policies are not perfect; products The market environment for promotion and use is not perfect, various infrastructures are not perfect, and the compulsory use of closed areas affects the performance of vehicles across regions; designated enterprises sell in certain restricted areas and affect fair competition.

The focus of the biofuel industry chain is tilted towards planting and raw material production

The large-scale production and utilization of biofuels in China depends on accelerating the transformation and upgrading of the industry. China's biofuel industry should complete the following strategic tasks in the future.

(1) Transforming the structure of raw materials for expansion and consolidating the resource base. It is necessary to shift from raw materials such as edible grain, sugar, and agricultural products, to various non-food materials, and to effectively expand the structure of raw materials under the premise of avoiding ** food security and to lay a solid foundation for resources.

(2) Improve and optimize product structure and increase economic efficiency. According to the characteristics of raw materials, through the development and integration of related technical processes, expanding the extended industrial chain, increasing the level of resource utilization and comprehensive utilization, developing high value-added by-products and new products, realizing the shift from a single raw material and product model to the use of multiple raw materials and production The transformation of comprehensive refining technologies for these products will improve the product structure and significantly increase economic efficiency.

(3) Adjust the industrial organization structure and improve industrial efficiency. According to the characteristics of the non-food biofuel industry's agroforestry, diversity, and regional characteristics, the industrial chain will focus on energy plant cultivation and raw material production, and establish a business model of "distribution conversion + centralized refining and deployment" to fully mobilize the local area. The enthusiasm of farmers and the government. Large and medium-sized enterprises in the middle and lower reaches should be encouraged to establish stable and mutually beneficial cooperative relationships with local farmers, SMEs, and related organizations, as well as a new model of agricultural and industrial integrated industries.

(4) Change the concept of industrial development to ensure sustainable development. It is necessary to innovate the concept of industrial development and achieve integration between the agricultural system, industrial system and environmental system at the macro level, and promote sustainable development in an all-round way. From extensive, destructive land development and planting patterns of raw materials to intensive, protective land development and planting patterns of raw materials, reducing ecological risks and risks of carbon leakage in soils; comprehensive inspection, assessment and reduction of raw material production of biofuels Energy consumption, conventional pollutants, and greenhouse gas emissions for processing, conversion, and production applications.

(5) Improve the industrial policy system and promote the healthy development of the industry. According to technological advancement and industrialization process, raw materials and product structure, characteristics of industrial organization structure, sustainable development concepts and requirements, establish and improve industrial supervision and incentive policies that cover the entire process of resource development security, processing conversion, product circulation and use, etc. A flexible and efficient market mechanism ensures healthy and orderly progress of biofuel pilot work and large-scale development.

During the “10th Five-Year Plan” period, China introduced the policy of pilot production of ethanol fuel ethanol and ethanol gasoline for automobile use. Chenhua Grain ethanol and modified fuel ethanol enjoy a linkage price policy with gasoline and a series of preferential tax and fee policies; Losses are subject to fixed subsidies. In terms of economic incentives, the central government will provide a subsidy standard of 200 yuan per mu for forestry raw material bases that meet relevant requirements and standards, and a subsidy standard of 180 yuan per mu for agricultural raw material bases.