China expected to impose 5 percent biodiesel blend mandate by end of 2007; oil price hikes a worry

China is drafting biodiesel blend standards and is expected to impose a 5 percent blending target by the end of the year, according to reports, and is looking at potential target dates for a 10 percent mandate. The Chinese government has set a consumption target of 200,000 tons of biodiesel for 2010 and 2 million tons for 2020.

The government is reportedly concerned over increasing dependence on imported oil, which accounts now for 50 percent of overall oil consumption.

China established an E10 mandate in 2002 for nine provinces, but has not extended the mandate, in part because of shortages of feedstocks.

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