Frbiz Believes Use of Corn Produce to Produce Ethanol is Too Early

2010-08-25 17:33 1115
    BEIJING, Aug. 25 /PRNewswire-Asia/ --, one of China’s leading B2B search platforms, discusses the use of corn to produce ethanol, believing it to be too early.
Frbiz analyzes that due to the high cost of production and size of population, China’s current use of corn to largely produce fuel ethanol is too early. Frbiz believes that large uses of corn to produce fuel ethanol may threaten China’s food security, especially in a year where natural disasters occurred frequently.
Early this year, the continuous drought in southwest China and the constant floods throughout China this summer have led people to worry about China’s food supplies.
Frbiz thinks that only when China’s corn output doubles can a suitable large-scale use of corn to produce fuel ethanol be undertaken. As it stands, China’s urbanization and industrialization are continually encroaching on cultivated land, while also forcing growing pressures on grain production.
As with recent years, demand for family cars continues to rise, and so gasoline demand increases soar. In order to meet the economic development and people’s improved living standards, China’s demand for energy is also increasing.
In order to alleviate the pressure of energy demand increases, the state approved four corn produced fuel ethanol pilot projects in Jilin and Heilongjiang. Producing one ton of fuel ethanol can earn RMB 1,880 in subsidies, and can also produce extensive tax benefits.
China’s fuel ethanol industry has been developing rapidly; China has become the world’s third-largest fuel ethanol producer after the United States and Brazil.
However, the cost of producing ethanol from corn remains high. In order to produce a ton of fuel ethanol, you need to consume three tons of corn, the total cost is about 8,000 RMB, and the market’s NO.93 regular gasoline price is only 7,750 RMB per ton.
China has started the large-scale planting of cassava and sweet potato for industry use, perhaps using non-food raw materials to produce fuel ethanol will be China’s breakthrough renewable energy.

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