The bio-fuel industry warms up New energy in the west

The call for alternative energy sources has continued to heat the biofuel industry. At the same time, it has attracted energy companies at home and abroad to "compete." Yesterday, a person familiar with Xintiande Energy Co., Ltd. in Guangxi revealed to reporters that the company is in contact with several interested foreign companies to discuss the possibility of cooperative production of fuel ethanol, including the world’s second largest oil company— British Petroleum (BP).
The largest business of Xintiande in Qinzhou, Guangxi, is the production of edible alcohol. After reprocessing, these edible alcohols can be used as fuel ethanol. Informed sources admit that the development of new energy is one of the company's future business priorities.
BP China Co., Ltd. failed to comment on the news yesterday, but yesterday there was news that some foreign investors, including BP, had always been interested in New Titus, and BP executives had met the relevant government in the local area before. Officials discuss the possibility of cooperation in the ethanol industry.
“Xinwen” is affiliated to the private energy upstarts. Guangxi Xintiande Energy Co., Ltd. was established in 2002 and is a Guangxi cassava comprehensive development demonstration project. Its main business is the use of cassava produced in Guangxi to produce edible alcohol, fuel ethanol and liquid carbon dioxide. Modified starch and protein feeds and other derivative products. The first batch of the new Tiande project that was put into production in January 2005 had an annual output of 100,000 tons of edible alcohol. After the completion of the second phase of the preparation, the annual output of edible alcohol and fuel ethanol will reach 500,000 tons.
The new tiande, which came out of rumors with BP, was not of concern in the industry. Most of the alcohol it produced was used for export. At the end of June last year, the 10,000 tons of alcohol that New Tien exported to the United States once set a record for the single export volume of domestic alcohol export trade.
However, the parent company behind the new Tiande Guangxi Tianchang Investment Co., Ltd. is an upstart energy. In addition to the new Tiande Group engaged in new energy, Tianchang Investment also includes a 70,000-ton coal terminal under construction and a completed 50,000-ton oil and gas terminal. The annual throughput of the former will reach over 10 million tons. It will become the largest coal terminal in the Southwest.
Xintiande’s informed sources revealed yesterday that contact with investors has started since last year, but the negotiations have been operated by the parent company, and the details are not yet clear.
Prospects for the biofuel industry are promising Because of the non-renewability of mineral fuels such as petroleum, coal, and natural gas, coupled with the high oil prices in the past two years, the search for alternative energy has gradually become a hot spot in the development of the energy industry.
As a new alternative energy source, fuel ethanol has been produced and used abroad for a long time. The United States has been promoting the use of vehicle ethanol for nearly 30 years. Brazil, which is also a developing country, is the only country in the world that does not use pure gasoline as a vehicle fuel. The proportion of ethanol in its vehicle fuel has reached 15.42%. China also announced in April 2001 that it has begun to promote the use of fuel ethanol throughout the country, established four major alcohol plants, used Chenhualiang to produce alcohol, and designated Henan, Heilongjiang and Jilin as pilot provinces.
In the National Medium and Long-Term Development Plan for Renewable Energy, renewable energy, including fuel ethanol, will account for 16% of the energy ratio by 2020, which shows a broad space for the development of fuel ethanol.
The new energy hot spot investment biofuel industry in the southwest region seems to have become a “fashionable”. In the recent year alone, domestic oil companies such as CNPC, CNOOC, and food giants like COFCO have plunged into this industry. The southwest region has become a hot spot for the development of biofuels.
In October last year, COFCO's annual production capacity of 400,000 tons of fuel ethanol was put into operation in Guangxi; CNPC signed an agreement with Sichuan in November last year to plan to build two biofuel plants in Sichuan before 2010 to produce fuel ethanol and biodiesel. The output reached 600,000 tons and 100,000 tons respectively.
Han Xiaoping, vice president of China Energy Network, believes that the main problem facing domestic fuel ethanol is the lack of supply. According to statistics, in 2005 China consumed about 45 million tons of gasoline each year. If it were to be replaced with fuel ethanol, it would require 4.5 million tons of ethanol, while China’s current ethanol production was only 1.02 million tons.

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