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Chinas Avant-garde Agrarian Policies Provide Fresh Impetus to its Biofuel Market - China's quest for renewable energy options has opened new avenues for its biofuel market
Chinas Avant-garde Agrarian Policies Provide Fresh Impetus to its Biofuel Market

 

NewswireToday - /newswire/ - Beijing, China, 2008/04/04 - China's quest for renewable energy options has opened new avenues for its biofuel market.

   
 
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The country has been intensifying efforts to find suitable solutions to address its energy concerns, and biofuels have emerged as an obvious solution, as they do not exhibit the detrimental climate changing effects associated with fossil fuels.

New analysis from Frost & Sullivan, (chemicals.frost.com) Strategic Analysis of the Chinese Biofuel Market, finds that the market earned revenues of $1.26 billion in 2007 and estimates this to reach $4.02 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Chinese biofuel market, then send an email to Amelia Wong, Corporate Communications, at amelia.wong[.]frost.com, your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

China is crafting an environmental-centric economy, sparing no efforts to progress in this direction. Since 2005, the government has formulated various plans, strategies, and guidelines pertaining to the biofuel industry, particularly feedstock.

"Under China's long-term development plans for renewable energy, tax exemption and financial subsidies were offered to encourage biofuel production, since the market is currently constrained by the shortage of feedstock and the lack of a complete regulatory system," says Frost & Sullivan Consulting Analyst Frank Xie.

China has revolutionized its biofuel market by picking up cues from the United States and Brazil, the world leaders in biofuel production. For instance, a series of policies and regulations have been mapped out to support the development of bioethanol. Meanwhile, China is also reviewing the first national biodiesel standard, which will streamline market conditions.

These measures emerged in the aftermath of the realization that biofuel is vital to secure the country's energy supply stability. However, since the Chinese biofuel market took its shape only in 2000, biofuel feedstock cultivation is still in the experimental stage and large-scale supply of feedstock is not available at the moment.

Keeping in mind the security status of food in China, a ban has been imposed on the use of food crops for the manufacture of biofuels. A fallout of this move is the reduction in the availability of land for biofuel cultivation, making feedstock supply fall short of production demand.

"The government is looking to remedy this situation by encouraging rural residents to cultivate biofuel energy crops by offering subsidies," observes Xie. "Not only does it provide cleaner fuel, but also creates more job opportunities and increases income levels in the rural sector."

Factors such as the availability of land for energy crop and the status of food security in China will determine whether feedstock supply can meet the requirements of China's highly potent biofuel industry. China is continuing to explore pragmatic solutions to scale up production in the short term and investing a great deal of effort on the implementation of tactical strategies, such as technological advancement, subsidies allocation, tax exemption, and reorientation of government policies.

Strategic Analysis of the Chinese Biofuel Market is part of the Chemicals and Materials Growth Partnership Service program, which also includes research in the following markets: biodiesel market and bioethanol market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

Strategic Analysis of the Chinese Biofuel Market P141

 
 
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Chinas Avant-garde Agrarian Policies Provide Fresh Impetus to its Biofuel Market

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Frost & Sullivan |
Publisher Contact: Amelia Wong 
+86 21 5407 5783 x8686 amelia.wong[.]frost.com
 
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