DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/4dc871/assessment_of_chin) has announced the addition of the "Assessment of China's Market for Biofuels" report to their offering.
China's Biofuels Market Large and Growing, but needs Subsidy Life-support due to Tight Regulations says Study
The study finds a large size and growing biofuels market, much of which is due to government mandated ethanol-only areas of northeast and central China and accounts for 20 percent of China's automotive fuel consumption. But the biofuel supply to these areas is a state sanctioned monopoly conferred upon three of China's largest State-owned enterprises: Sinopec, CNPC and the Cofco group. Further, the grain used as a fuel stock in nearly two-thirds of biofuels has been banned in new projects amidst concerns of domestic food price inflation.
In some ways, the biodiesel and ethanol markets sharply contrast each other. Biodiesel suppliers are mostly privately owned, whereas all but one ethanol supplier is state-owned. The ethanol fuel industry is the result of careful state planning and control, while biodiesel is organic and its suppliers are typically opportunistic makers of chemicals.
But both types of biofuels are caught between rising raw material pricing and restrictions and the fixed (and artificially low) pricing of diesel and gasoline, to which biofuels must be pegged. The Chinese government has provided subsidies and tax breaks to both suppliers, although anecdotally, state owned enterprises are favored. Many admit that without such support, biofuels would be a loss-making venture.
Companies Mentioned:
- Henan Tianguan
- Jilin Bioethanol
- Zhaodong COFCO
- Anhui BBCA
- Shandong Longli
- Xi'an Shirun
- Guangxi COFCO
- China Biodiesel
- Jiangsu Hengshunda
- Sichuan Gushan
- Shandong Qingda
- Hubei Huitian
- Hunan Jindeyi
- Longhai Bio-tech
For more information visit http://www.researchandmarkets.com/research/4dc871/assessment_of_chin