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The National Development and Reform Commission recently disclosed on its website that the relevant state agencies are formulating measures for the management of subsidies for bio-energy feedstock bases and subsidies for processing model subsidies.
Last year, the “Implementation Opinions on the Development of Bio-energy and Bio-chemical Support Policies for Finance and Taxation†issued by the Ministry of Finance clearly stipulated “subsidy for raw material basesâ€. “The state encourages the development of unused land such as winter fields, saline-alkali lands, barren hills, and uncultivated land to build bio-energy and bio-chemical raw material bases to ensure that bio-energy and bio-chemicals have a stable source of raw material supply.â€
However, due to the shortage of land resources, when it comes to the development of bio-energy, the problem of shortage of bio-energy raw materials is generally encountered. Taking biodiesel as an example, in the past, China's biodiesel feedstock was mainly waste oil. In 2005, the annual output was maintained at 100,000 tons. In 2006, the biodiesel production was rapidly enlarged to 500,000 tons. Due to the limited amount of waste oil, a large city with a population of one million is only producing about 10,000 tons of waste oil each year. Ditch oil prices rose from 1,800 yuan per ton in early 2006 to over 3,000 yuan per ton. Some biodiesel projects want to use imported palm oil as raw material, while 1 ton of palm oil has risen to 3,500 yuan, compared to the market price of biodiesel of 5,000 yuan per ton, and compared with the price of standard petrochemical diesel of 5,700 yuan per ton, respectively. The cost advantage of diesel is also lost.
Last year, the “Implementation Opinions on the Development of Bio-energy and Bio-chemical Support Policies for Finance and Taxation†issued by the Ministry of Finance clearly stipulated “subsidy for raw material basesâ€. “The state encourages the development of unused land such as winter fields, saline-alkali lands, barren hills, and uncultivated land to build bio-energy and bio-chemical raw material bases to ensure that bio-energy and bio-chemicals have a stable source of raw material supply.â€
However, due to the shortage of land resources, when it comes to the development of bio-energy, the problem of shortage of bio-energy raw materials is generally encountered. Taking biodiesel as an example, in the past, China's biodiesel feedstock was mainly waste oil. In 2005, the annual output was maintained at 100,000 tons. In 2006, the biodiesel production was rapidly enlarged to 500,000 tons. Due to the limited amount of waste oil, a large city with a population of one million is only producing about 10,000 tons of waste oil each year. Ditch oil prices rose from 1,800 yuan per ton in early 2006 to over 3,000 yuan per ton. Some biodiesel projects want to use imported palm oil as raw material, while 1 ton of palm oil has risen to 3,500 yuan, compared to the market price of biodiesel of 5,000 yuan per ton, and compared with the price of standard petrochemical diesel of 5,700 yuan per ton, respectively. The cost advantage of diesel is also lost.
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