China Agri-Industries to invest $183 million to expand Guangxi biodiesel plant to 300,000 tonne capacity

March 10, 2008

China Agri-Industries Holdings said that it will build an expansion at its 200,000 tonne ethanol plant in Guangxi, increasing capacity to 300,000 tonnes. Total investment in the expansion will be as much as $183 million, according to plant officials. Completion dates fro the expansion project were not released.

Guangxi Zhuang Autonomous Region will convert to a cassava-based ethanol blend as of April, in an attempt to reduce greenhouse gas emissions and imported fuel costs, while avoiding the use of grains for ethanol feedstocks.

In recent weeks, the province of Guangxi said that a cassava (tapioca) shortage may lead it to curtail ethanol production projections for this year, and have cast doubt on the province’s plans to double production by 2010. Provincial officials originally set a production goal of 1 million tons of ethanol but is looking now at a best-case scenario of 200,000 tonnes.

However, the prospects of Chinese exports of ethanol or biofuel feedstocks appear remote. A Beijing-based observer told Biofules Digest, “Chinese authorities still think they can grow crops and produce both for fuel and food.Â One hopes they will wake up and notice they’re rowing against the stream.”
Overall, Chinese food prices have soared 60 percent on selected goods, prompting fears that food riots, similar to those which precipitated the 1989 uprising, may occur in major Chinese cities. Strong curbs on production of fuels from food crops is expected, to reduce pressure on prices, as the country emerges from an extreme cold crisis, on top of major crop failures. Tariffs of up to 25 percent have been placed on export of key biofuel feedstocks.

Last year, China produced 264 million gallons of ethanol, but recently imposed a moratorium on corn ethanol production because of the impact on corn prices, focusing investment on cassava, sorghum and sugarcane.

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

33 Mgy cassava-based ethanol project announced in China

In the Guanxi province of China, Beihai Gofar Marine Biological Industry announced plans for a 100,000 ton-per-year (33 Mgy) cassava-based ethanol plant. Beihai Gofar will raise $74.5 million in new e...

Hainan Yedo to build 30 Mgy cassava ethanol plant in China; feedstock from Laos

In China, Hainan Yedao announced that they would construct a 30 Mgy cassava-based ethanol plant in Hainan province. The $51 million project is awaiting government approval, and would utilize 4,498 hec...

Mozambique backs cassava-based ethanol, says focus will be on converting surplus

In Mozambique, the executive director of the Kenya-based African Agricultural Technological Foundation (AATF), Mpoko Bokanga, told All Africa that using cassava for ethanol production will not threate...

Philippines increases cassava plantation to supply China

In the Philippines, Eastern Renewables Fuels said it plans to expand cassava planting to 4500 hectares in 2008 to meet rising demand. The company ships its output to Guanxi province in China....

Biofuel Industries signs with GreenShift to expand capacity 20 Mgy

In Michigan, Biofuel Industries Group has signed an agreement with GreenShift to procure $10 million of proprietary biodiesel equipment, to expand its capacity by 20 Mgy. Biofuels Industries, which do...

China’s Guanxi province mandates E10 as ethanol capacity increases

In China, Guangxi province has mandated E10, as the provinces 65 Mgy of ethanol production capacity comes online. Capacity in the province is expected to reach 100 Mgy by next year whenÂ a Beihai G...

Written by Jim Lane · Filed Under International