Chinese ethanol producer to get higher government subsidy

Anhui BBCA Biochemical Co. Ltd., located in Bengbu City, north Anhui, in China announced that the government has raised the company’s subsidy in 2009. Government financial aid for Anhui Province, Central China’s government-appointed fuel ethanol producer, would be lifted to RMB2,246 (US$329.04) per ton. As the province’s sole fuel ethanol producer, the company enjoyed a subsidy of RMB2,185 (US$320.1) per ton in 2008. In order to ease its working capital shortage, the company intends to ask its controlling shareholder COFCO Ltd., formerly known as China National Cereals, Oils & Foodstuff Corp., for a loan of as much as RMB508 million (US$74.42 million). (May 13, 2009)