China to prioritize biofuels

China’s National Development and Reform Commission issued the Mid Long-Term Development Plan for Renewable Energy on September 4, saying the government will give priority to the development of biomass energy. Analysts said biomass energy producers, as well as some other related firms, will benefit from the new policy, as existing bottlenecks are expected to be cleared up by the government gradually. According to the plan, oil companies in government-designated regions should blend the prescribed proportion of biomass fuels into their products. The government promised to reduce taxes for biomass energy enterprises and provide them with financial support. China has become the world’s third largest producer of fuel ethanol with a yearly output of 1.02 million tons. The world’s top two fuel ethanol producers Brazil and the United States make up 90% of the total global production. (September 24, 2007)