Ethanol not in China’s green future

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Xinhua is today reporting that corn based ethanol fuel won’t be used in the future due to China’s growing demand for the yellow vegetable:

China launched a pilot program in four regions in 2004 to promote its corn-to-ethanol projects, as part of its efforts to cut emissions and advance the development of new energy.

China has a growing appetite for energy to power its economic development and improve people’s lives. As more and more Chinese people purchased cars, the demand for fuel soared.

Zhang Yafei, an analyst with Cinda Securities Co., said to produce one tonne of ethanol fuel will consume nearly three tonnes of corns and cost at least 8,000 yuan (1,176 U.S. dollars), while Petrol 93# sells for 7,750 yuan per tonne on the market.

“China has started its mass planting program for cassava and sweet potatoes for industrial use. Probably, the use of non-grain feedstock for ethanol plants will be the solution to China’s dilemma in developing renewable energy,” Li said.

As the world’s major corn producer and consumer, China’s annual corn production and consumption both exceed 150 million tonnes.

Several years ago, China announced that it will be putting forward electric and hybrid vehicles forward as the future of the Chinese motor industry, and will be leaving diesel and gasoline tech on the back burner.