Fuel ethanol raw material supply is worrying Industry insiders recommend the transformation of the production process

Reporters recently in Liao, Black, Yan and other provinces research learned that in recent years, some corn-based fuel ethanol projects, to optimize China's energy structure, consumption of excess corn stocks, promote local economic development, drive farmers to increase income has played a role. But as more projects are put into production, and the Northeast corn "pro-storage" auction is vigorously promoted, there are also concerns about the supply of corn in the industry. Relevant people suggest that the country consider the general, adhere to the principle of moderation, support enterprises to straw and other raw materials for the transformation of fuel ethanol production process
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Xinxin fuel ethanol project consumes a lot of corn
reporters in the investigation learned that the new corn-based fuel ethanol project, mostly in the northeast, Shandong and other provinces layout, can consume a lot of corn. Reporters came to the site of the 300,000 tons of fuel ethanol project located in Tieling, Liaoning Province, to see that storage, distillation and other equipment has been installed, the project plans to use 1 million tons of corn a year, in the fall of 2017 to start construction, is now basically completed.
not only in Liaoning Province, but also in Bei'an City, Heilongjiang Province, where a 300,000-ton fuel ethanol project began in October. Liang An, director of the Bei'an Municipal Bureau of Commerce and Food, said the project has a total investment of 1.82 billion yuan, with corn as the raw material for production, and 924,000 tons of corn can be processed and converted annually. It is expected that after completion, the average annual operating income will be 2.2 billion yuan, the total annual profit will be 180 million yuan, the tax paid will be 120 million yuan, and 600 people will be employed. It is understood that this is only one of the new 2.7 million tons of corn fuel ethanol project in Heilongjiang.
reporter comprehensive port, agriculture and other departments, including corn fuel ethanol, corn deep processing projects in the Northeast in recent years showed an accelerated expansion trend, some have been put into production, some are still under construction and planning construction. In 2017, the corn processing capacity of fuel ethanol, starch and other enterprises in the four northeastern provinces and regions will be close to 40 million tons, reaching 46 million tons in 2018, and is expected to continue to increase thereafter.
a port-related business leader told reporters that in 2018, the port's corn mass will be 30 million tons, but with the arrival of fuel ethanol and other corn deep processing projects, the local consumption of corn in the northeast increased, is expected to be reduced to 20 million tons by 2020.
According to the Data of the State Food Trading Center, domestic corn production decreased from 224 million tons in 2015/2016 to about 216 million tons in 2018/2019, while total corn consumption increased from 177 million tons to 262 million tons during the same period due to rapid increases in feed consumption and industrial consumption.
Grass-roots cadres and industry insiders said that the fuel ethanol project is an important measure to serve the national energy strategy and revitalize the Northeast economy, can further improve the energy consumption structure, alleviate the shortage of petroleum resources, low energy consumption, low material consumption characteristics in line with the future development direction of the fuel ethanol industry, can reduce the dependence of domestic energy external, reduce the consumption of crude oil, save valuable non-renewable resources, protect the atmospheric environment, help win the blue sky defense war.
Biofuel ethanol can further promote grain conversion, drive farmers to increase income, crack farmers "difficult to sell grain", stimulate local economic development, solve labor force employment, drive the deep development of the field of deep processing of grain, with significant economic and social benefits.
Industry is concerned about the future of tight corn supplies
in the context of global energy shortages and climate change, people are looking for an economically viable, resource-sustainable, energy and environmental solution to the dual problems of sustainable development. Fuel ethanol plays a key role in the transportation of carbonization, with ethanol gasoline reducing emissions by more than 50% compared to pure gasoline. In September 2017, China issued the Implementation Plan on Expanding the Production and Promotion of Biofuel Ethanol And the Use of Car Ethanol Gasoline, which explicitly promotes the use of car ethanol gasoline nationwide and achieves full coverage by 2020. At present, dozens of countries around the world have introduced fuel ethanol. Since 2001, China has started biofuel ethanol pilot projects in Guangxi, Inner Mongolia, Shandong, Henan and other places.
interview, some industry insiders and experts said that the development of fuel ethanol projects is conducive to improving corn deep processing capacity, promote local economic development at the same time, if the development is too fast, unreasonable layout, there are some hidden worries, may exacerbate the corn market supply shortage and other issues.
"This year's Northeast corn 'front storage' auction sold 10.13 million tons, less than 80 million tons remaining, is expected to be completed next year." A person familiar with the matter told reporters, "Such a large auction volume, also do not see corn prices go down, indicating that demand is very strong." If the state does not control corn deep processing projects such as corn fuel ethanol in the future, the corn market may soon shift from surplus to shortage. Gao Shijun
general manager of Shandong Shouguang Giant Energy Gold Corn Group, believes that from 2019, China's corn market supply and demand will be "tight balance" and enter a normal market-led period of steady development. But if the state promotes corn-based fuel ethanol projects, it will have an impact on the market.
ma Wenfeng, a senior agricultural analyst at Iger, said that at present, corn "destocking" increased, the future corn "in short supply" contradiction will be more prominent, will bring corn prices, which will increase the raw material costs of fuel ethanol enterprises, if the technology and management can not be fully upgraded, there is a good chance that "built to stop work" risk.
trend, more and more corn is being consumed locally in the Northeast, and the corn gap will be mainly in the south," he said. Jiang Jun, project manager of Xiamen Jianfa Products Corn, said that this part of the gap may need to be filled by imports, but at present China's annual quota of imported corn is only 7.2 million tons, and only a part of the market, the future import demand is likely to increase.
Fufuel ethanol industry" voice has been there, corn-based first-generation fuel ethanol production process, although mature technology, low cost, but there are many people worried that overuse may threaten food security.
the global co-ordination to increase technological upgrading
interview, industry insiders and experts put forward the following recommendations:
from the national level to strengthen supervision of fuel ethanol projects. Li Guoxiang, a researcher at the Institute of Rural Development of the Chinese Academy of Social Sciences, said biofuel ethanol could act as a "regulator" for China's domestic food supply and demand, but in order to prevent disorderly development and bring about the hidden danger of "fighting for food with people", it is necessary to strictly regulate and approve the production of fuel ethanol at the national level. In the long run, in order to avoid conflict with food security, the non-food production of fuel ethanol is the direction of development.
encourage enterprises to upgrade their non-food fuel ethanol projects. Ma Wenfeng said that the corn-based first-generation fuel ethanol production process, although mature technology, low cost, but excessive use may threaten food security, recommended that the state issue relevant policies to support fuel ethanol enterprises to speed up technological upgrading, from corn as the main raw material of fuel ethanol technology, to straw and other waste as raw material fuel ethanol production process transformation, and further enhance cellulose ethanol technology.
understood that China's annual use of straw and forestry waste more than 400 million tons, 30% can produce 20 million tons of biofuel ethanol. These provide reliable feedstock guarantees for expanding the consumption of biofuel ethanol production and achieving sustainable development.
Northeast, a large fuel ethanol enterprise related to the person in charge told reporters that the development of straw as raw material cellulose fuel ethanol project, can be a large number of straw "waste for treasure", reduce incineration pollution, but at present, production costs are still high. She said that enterprises use corn as raw materials for ethanol production technology is more mature, about 3 tons of corn to produce 1 ton of ethanol, according to the current price of corn 1800 yuan per ton calculation, the cost of producing a ton is 5400 yuan, and according to the existing level of enterprise technology, straw as raw material to produce 1 ton of ethanol, at least 10,000 yuan.
Industry insiders said that cellulose fuel ethanol technology is a directly related to environmental protection and carbon emission reduction technology, should not rely on the strength of enterprises alone, the government should further develop clear, long-term stability of tax, fiscal and other support policies, establish a sound industrial development incentive mechanism, accelerate the technical integration of all forces, as soon as possible to achieve large-scale commercialization. (Reporter Yu Mingzhong Wang JianLin Chao Bai Chungquan)