Guangzhou China Nov. 12, 2010 - According to the Middle and Long-term program of Renewable Energy Development, issued by the State Council in August 2007, biodiesel consumption volume will reach 200,000 tonnes by 2010 and 2 million tonnes by 2020, and China's total biodiesel capacity by 2020 will be forty times compared with that by 2005.
This program shows that Chinese biodiesel industry will enter industrial promotion stage during the 12th Five-Year Plan (2011~2015) of China. During the time, many favorable policies are estimated to issue, such as tax preference and imposing biodiesel use in many provinces for Chinese biodiesel industry.
In fact, Chinese government officially announced B5 biodiesel standard in late October 2010, which could be seen as a mark for Chinese biodiesel industry entering industrial promotion stage. There was no related formal biodiesel standard in China. Therefore, the issue of B5 biodiesel standard will provide a legitimate pass for biodiesel to be sold in national gas stations and alleviate the long-term lack of sales channels for biodiesel to a certain degree.
But due to obvious price disadvantage, biodiesel still can not compete with traditional diesel made from oil. Moreover, supply of traditional diesel is sufficient enough, and several domestic large-scale oil enterprises have been continuously expanding their traditional diesel capacity in recent years.
Until now, only Hainan Province has implemented B5 biodiesel standard. However, in order to promote biodiesel use in China, Chinese government will certainly popularize biodiesel use in other provinces during 2011~2015, which will gradually improve the long-term undesirable performance of biodiesel industry, revealed by many insiders.
Note: B5 biodiesel standard: 5% biodiesel & 95% traditional diesel
Source: CCM International