China's fuel ethanol industry has to consume

While the domestic fuel ethanol industry is more optimistic about the prospects due to the recent surge in international crude oil prices, an industry report from Kearney, a globally renowned consulting firm, has poured into the cold water. The data provided in the “White Paper on Industry Research for China's Fuel Ethanol Industry” published on July 16 shows that compared with the United States, China’s water consumption for producing one ton of fuel ethanol is more than five times higher, and raw material consumption is higher. 20%. This shows that high consumption and low production efficiency are major obstacles to the development of China's fuel ethanol industry.
After comparison, the white paper concludes that China needs to consume 12 tons of water to produce one ton of ethanol, compared with 1.8 tons in the United States; China needs 3.3 tons of corn to produce 1 ton of ethanol, while the United States needs 2.8 ton; China's ethanol production Pollutant emissions are also much larger than in the United States. At the same time, due to the high cost of corn and Other food materials, the current production cost of fuel ethanol in China is 17% higher than that in the United States, and the price of fuel ethanol products in China is 18% lower than that in the United States. According to industry sources, if the national policy subsidy is further reduced, the high consumption will become the “soft underbelly” of the development of fuel ethanol enterprises in China.
It is understood that the state will soon introduce the fuel ethanol industry policy and strictly limit the various production technical indicators. In the future, the consumption of one ton of fuel ethanol should be controlled below 5 tons, coal consumption should be reduced to less than 500 kilograms, and there should be higher requirements for chemical oxide emissions. This standard is a very high threshold for SMEs.
According to industry insiders, at present, China's fuel ethanol production must rely on government subsidies to ensure capital preservation or profitability. The relevant person of Jilin Fuel Ethanol Company stated that at present, the country subsidizes 1,370 yuan per ton for its fuel ethanol products. According to calculations, the current production cost of fuel ethanol in China is around 4,000 yuan/ton, and the market sales price is about 3,200 yuan/ton. If there is no subsidy, it will lose nearly 800 yuan per ton of fuel ethanol.
The reporter learned that gradually reducing subsidies until the final elimination of subsidies, while strictly controlling the consumption of energy and resources is the main idea for the country to develop fuel ethanol. Therefore, domestic key fuel ethanol producers are exploring the non-food line, striving to reduce consumption, reduce costs, speed up technological transformation, and increase production efficiency. According to reports, the current production targets of key enterprises such as Jilin Fuel Ethanol Company are moving closer to the international advanced level.

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