China Fuels Ethanol Industry with Yams, Sweet Potatoes and Cassava

May 16, 2008
by Lou Schwartz, China Strategies
Bejing, China [RenewableEnergyWorld.com]

In 2006, China imported 145 million tons of crude oil, accounting for 44% of its consumption of oil. With the rapid growth in vehicle sales in China, consumption of fuel oil for vehicles accounted for 35% of oil consumption in 2006. And demand for fuel oil in China continues to grow at the rate of 15-16% per year. To satisfy domestic demand for vehicle fuel, control its dependence on foreign sources of oil and attempt to moderate fuel costs, China has embarked on a robust effort to ramp up fuel ethanol development.

Beginning in 2002, China experienced a spurt of grain-based ethanol refinery development. At that time, with the price of oil rising and China experiencing bumper grain yields, Chinese decision-makers encouraged the development of grain-based ethanol as a substitute for oil. By 2006, however, Beijing recognized that the use of grains for ethanol production was putting a strain on food supplies and causing worrisome increases in food prices. (In 2006, China's ethanol production was about 3.5 million tons, of which fuel ethanol output was 1.3 million tons, the third largest in the world.)

Read the full story