China has potential to produce 1.2 billion tons of cellulosic biomass

China could potentially produce 1.2 billion tons of dry cellulosic biomass per year, which has the energy content of 400 million tons of crude oil, according to Li Rongjie, a deputy to the National People’s Congress (NPC). The cost of converting five to six tons of corn straw into one ton of ethanol is approximately 7,500 yuan (US$1,098.59), which is equivalent to the current retail price of gasoline. Li suggested that the government offer subsidies and policy incentives for enterprises engaged in such business to speed up commercialization of cellulosic ethanol production. (March 13, 2010)