Emulsified diesel holds some promise for China

Due to China’s ongoing push to industrialize and its limited oil reserves, there is not much chance that it will be able to cut down on foreign oil. However, China’s reliance on imported crude has also created an opportunity for alternative fuel producers. Yang Yang, board chairman of Shanghai New Fuel Energy Technology Co. Ltd., said that his company’s emulsified diesel can help China reduce its oil consumption, but may need government backing to do so. Despite soaring global crude oil prices in the first half of last year, alternative fuels have made little headway in China’s fuel market. In the short term, these fuels in general are still hindered by higher production costs and a lack of standards that prevent them from gaining wider acceptance. In the long-term, however, fuels like Shanghai New Fuel Energy Technology Co. Ltd.’s emulsified diesel could help domestic consumers reduce their fuel consumption and the government meet its goal of greater fuel efficiency. Shanghai New Fuel Energy Technology’s founder Yang Yang believes that emulsified fuel has a promising future in China because it can help reduce the country’s oil consumption, 60% of which will be met with foreign oil by 2020. (March 25, 2009)