Since June this year, the rising cost of food crops has led to increased use of corn and other grains in fuel ethanol production projects. On September 4, the National Development and Reform Commission (NDRC) officially released the "Mid- to Long-Term Development Plan for Renewable Energy," which emphasizes the development of non-food crops for biofuel production. Then, on September 20, the NDRC issued an emergency notice to restrict the uncontrolled expansion of corn-based deep processing industries, including ethanol projects, and shifted its policy from encouragement to strict control.
Market analysts believe that these changes reflect growing pressure on China’s new energy policies. While fuel ethanol projects using grain are being curbed, the government is focusing on alternative technologies, such as those using cassava, sweet potatoes, and sweet sorghum for ethanol, and Jatropha, Pistacia chinensis, tung tree, and cottonseed for biodiesel.
The policy shift has already prompted major companies to adjust their strategies. For example, three projects by China Agri-Industries Holdings Co., Ltd.—originally planned to invest HK$674 million—were halted due to their reliance on grain. Investments in two biochemical projects were also reduced. COFCO recently announced it would reallocate funds previously intended for biofuels and biochemicals toward projects not subject to policy restrictions, aiming to avoid uncertainty.
Experts argue that the renewable energy sector still aligns with national goals. In a world facing energy shortages, companies with renewable energy projects are likely to gain quickly. Wind and solar equipment manufacturers are expected to see explosive growth over the next three years, while bio-diesel, fuel ethanol, and biomass power generation firms may attract significant investor interest.
However, challenges remain. Despite policy support, issues like inadequate incentives, weak technological capabilities, and underdeveloped industrial systems persist. To address these, the NDRC has outlined five key measures: guiding policies through pricing mechanisms, offering fiscal and tax incentives, expanding market opportunities, strengthening R&D and education, and raising public awareness about renewable energy.
Shi Dingxi, director of the China Renewable Energy Society, emphasized that with fossil fuel depletion and climate change, developing renewable energy is both a global necessity and a strategic choice for China. He noted that China’s renewable energy sector is entering a period of rapid growth.
According to data, in 2006, China used 200 million tons of standard coal equivalent in renewable energy, accounting for around 8% of total primary energy consumption. The Mid- to Long-Term Development Plan aims for 15% by 2020, with the share expected to grow further in the coming decades as energy demand increases.
The NDRC also stated that by 2010, renewable energy utilization will reach 300 million tons of standard coal, and by 2020, 600 million tons, significantly reducing coal use and compensating for the shortage of oil and natural gas resources.
Metal Detector
Food Manufacturing Metal Detector,Food Metal Detector ,Food Metal Detector Machine,Metal Detectors Food Processing
FOSHAN HIGH-TECH MACHINERY EQUIPMENT CO., LTD , https://www.packingweigher.com