Chinese biodiesel industry unfazed by oil price falls
Biodiesel production is one of the new bull markets in China, with bright growth prospects and an environmental conscience. And, it is drawing in investors as production soars. Around Guangzhou in the nation's south, dozens of plants are reported under construction or already in production. The all-important feedstock question is being answered in a host of different way as well with imported palm oil, cooking oil, cotton seed, tung oil tree and organic wastes.
Europe's staple biodiesel feedstock of rapeseed oil offers the most promise though with the Academy of Agricultural Sciences developing a new kind of hybrid rapeseed which has a record 54.7 percent oil content. China's Yangtze River Valley is the world's largest rapeseed producer with the potential to produce 40 million tons of biodiesel per year. This would be equal to 150 percent of the production from Daqing Oilfields which is currently China's leading crude oil producer.
The Chinese government has developed a blueprint for the development of renewable energy, including biodiesel, but currently people producing and marketing biodiesel in China often pay no heed to government regulations, standards and quality controls. In fact, it is not even known how many biodiesel factories exactly exist in China. Experts also fear that valuable farming land will be used for biodiesel feedstock crops instead of for food. In fact, much of the biodiesel produced in China isn't even used there. Instead, it's exported to Europe.
Analysis: Biodiesel in China sounds a little like a gold rush where quick profits, not quality production and sustainable growth, seem to be the motivating force. The use of valuable crop land for biofuels instead of food has been raised as an issue world-wide, but its immediate impact is likely to be felt in China where amazingly, less than 0.1 hectares of arable land is available per capita. Still, you have to admire the Chinese - when they put their minds to a task, they can move mountains.
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[Source: Renewable Energy Access]
Reader Comments (Page 1 of 1)
Tim 12:43PM (1/26/2007)
The wave is upon China, fortunately like water, economics will find it's own level. The Chinese are an intelligent, inventive, aggressive and motivated people. This once sleeping dragon will again become a world leader. All it took was for simple economics to overthrow the democratic-socialism so market forces could free the people's productivity. Try as hard as you can but, you can’t change human nature. Hey whacko lefties… hear that?? Socialism has failed yet again!!
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Howard Lee Harkness 1:33PM (1/26/2007)
"Europe's staple biodiesel feedstock of rapeseed oil offers the most promise..."
Wrong again, Dane. Algae feedstock still has a big competitive advantage over rapeseed oil, especially in a country where land is relatively scarce. The only thing that rapeseed has going for it is governmental meddling.
Tim -- China is still a 'communist' dictatorship, and that isn't likely to change soon, despite their relatively recent embrace with capitalism. (I import violins from China, which has been an interesting experience.) You might want to read up on some blogs with a focus on China -- and there is a really interesting series on PBS running now, called "China from the Inside". Then, you might want to spend some time watching CCTV9 (China Today), to get the story that the Chinese government wants to sell the rest of the world, just for contrast.
The Chinese are living in their ancient curse: "interesting times".
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Tim 2:49PM (1/26/2007)
Howard- Sorry, my bad! I'm hoping that once the people taste economic freedom, that they will through out the communists. Socialism with its "entitlements" and cost of the huge inefficient government always collapses under it's own debt. It happened to the Soviets and it's happening to the US and it will happen to China too. I guess I should have said that Socialism IS FAILING yet again!!
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