Fuel Ethanol Released at the End of the "Eleventh Five-Year Plan"

“The Eleventh Five-Year Plan for Fuel Ethanol is being studied and compiled. There are four major principles, one is to take a new position and promote industrial development; the second is to highlight the pulling role and stabilize policy support; the third is to expand the scale of development and determine the reasonable Fourth, strict market access and improvement of development quality.” On September 14, at the 2006 International Biofuel Conference, Liu Qun, Secretary of the National Development and Reform Commission’s Industry Department, stated that for the rapidly growing fuel ethanol industry, a new special development Planning will be introduced at the end of this year.
According to the website of the Development and Reform Commission’s Industry Department, China has established four pilot bases for fuel ethanol. In 2005, China's fuel ethanol production capacity reached 1.02 million tons, and it has achieved the ability to mix 10.2 million tons of fuel ethanol gasoline annually. China's gasoline consumption in 2005 was 48 million tons, and the consumption of fuel ethanol gasoline accounted for more than two percent of the total gasoline consumption in the country.
Liu Qun has long been in charge of the promotion of ethanol gasoline in the National Development and Reform Commission. He said that under the background of high oil prices, the economy of the biofuel industry has become increasingly apparent, and the current contradiction between supply and demand will bring enormous benefits to this industry. Market space. At the same time, the country’s increasingly stringent environmental protection requirements have also provided impetus for the development of the industry.
According to reports, by 2010 China's gasoline market is expected to reach 66.5 million tons. Among them, the market share of fuel ethanol will reach 5%, which means that the annual production of fuel ethanol in China will exceed 3.3 million tons. However, in addition to the existing four national fuel ethanol pilot bases, the NDRC has not yet approved any new projects.
Liu Qun said that the government's guidance to the fuel ethanol industry must be both positive and sound. At present, there are signs of overheated investment in this industry in China. The government will control the scope and intensity of support according to the four supporting indicators of resources, technology, environmental protection, and energy consumption.
Liu Qun also pointed out that in the new special plan, the principle of policy support will be more clear, that is, the development of fuel ethanol should not compete with land for grain, and must promote energy and food "win-win"; adhere to the combination of industrial development and financial support, encourage Diversification, development of bases for raw materials for saline-alkali land; encouraging enterprises to improve efficiency and competitiveness, and strive to break through a number of key technologies; companies with low costs and high efficiency will receive preferential government support.
It is understood that the state will implement flexible loss subsidies for the fuel ethanol industry in the future and establish a reference protection price. If it is lower than this standard, it will be subsidized. At the same time, the state will also subsidize the construction of raw material bases and subsidize the leading enterprises in the peasant household model. In addition, incentives include model subsidies and tax incentives.
In addition, existing closed promotion pilots in Heilongjiang, Jilin, Henan, and Anhui will be expanded to provinces and other provinces during the “Eleventh Five-Year Plan” period. Vehicles that use high-biological ethanol-gasoline fuels will be selected after piloting in selected regions. Promotion.