China’s first non-grain fuel ethanol project was officially put into operation in Beihai

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On December 22, the fuel ethanol production project with an annual capacity of 200,000 tons, invested in by COFCO Group and built in the Hepu Industrial Park in Guangxi, was officially put into operation. This is the only non-grain-based fuel ethanol project to be brought online in China to date. Wen Kahua from the Guangxi Regional Party Committee and the Beihai Municipal Party Committee, Chen Wu, Deputy Head of Guangxi, Lian Younong, Mayor of Beihai, Ning Gaoning, Chairman of COFCO Group Limited, and Yu Xubo, President of the company, attended the ceremony for the unveiling of the project and its commissioning. Currently, the development of renewable energy and biomass clean energy has become a key focus of China’s new energy strategy. To support the implementation of the **new energy strategy and to establish China’s largest non-grain biomass energy base, at the end of 2006, COFCO Group, one of the world’s top 500 companies, built its first biomass energy project in Guangxi, guided by the principle of \"not competing with farmers for grain, nor competing with grain production for land.\" The project is located in the Hepu Industrial Park in Beihai, covering an area of 550 mu. The total investment for the project is 1.46 billion yuan, with construction carried out in two phases. The investment for the first phase of the fuel ethanol production facility amounts to 760 million yuan; this phase will enable an annual production of 200,000 tons of fuel ethanol, 50,000 tons of fiber-based feed, 29.7 million cubic meters of biogas, and 50,000 tons of carbon dioxide. There is a dedicated railway line, a self-generated power plant with a capacity of 15,000 KW, an ethanol production line, and a large-scale wastewater treatment system. The project officially broke ground on December 24, 2006, and went into operation on December 22, 2007; it was built in just one year to reach a capacity of 200,000 tons, setting a record in the history of construction projects in Beihai. According to Jiang Yong, general manager of Guangxi COFCO Bioenergy Co., Ltd., once this project is put into operation, it will require 1.5 million tons of fresh cassava per year (equivalent to 610,000 tons on a dried basis). This will enable the cultivation of nearly 1 million mu of cassava in Beihai and surrounding areas. It is expected to generate an additional 300 million yuan in income for local farmers each year. The project can help promote local economic development and the rapid growth of related industries, facilitate comprehensive agricultural development and the optimization of the agricultural structure, improve the investment environment, drive economic growth, create more job opportunities, enhance corporate profitability, and offer new solutions to the issues related to agriculture, rural areas, and farmers. Jiang Yong said that in the future, the company will also offer a range of preferential policies to assist farmers, adopting a \"**+enterprise+company+farmers\" approach to address the practical problems faced by farmers in selling cassava. At present, the company has entered into contract farming agreements with farmers, setting a minimum purchase price of 450 yuan per ton for fresh potatoes. When the harvesting season arrives, if the market price is lower than this minimum price, the potatoes will be purchased at the agreed price of 450 yuan per ton ； If the market price is higher than 450 yuan per ton, it will be purchased at the market price. In 2007, the company signed order agriculture agreements covering 100,000 mu with potato farmers in the core area. Locally, cassava has become the third most economically valuable crop after eucalyptus and sugarcane. To promote the development of the biomass energy industry, the Guangxi Zhuang Autonomous Region has issued a directive stating that starting from February 2008, the sale of ethanol-based gasoline for use in vehicles will be prohibited in Guangxi, with the aim of replacing such gasoline with other types of gasoline (except for those required by the military, for specific purposes, and for special reserve uses). By then, cassava, which is drought-resistant, tolerant of poor soil conditions, and has strong adaptability for cultivation, will become the driving force behind Guangxi’s economy, and the region will turn into China’s largest base for non-grain biomass energy. A large biomass energy project using cassava as raw material was put into operation on the 22nd in Beihai City, Guangxi, with an annual production capacity of 200,000 tons of vehicle fuel ethanol suitable for use mixed with regular gasoline. Unlike other manufacturers that produce similar products, this project under COFCO Group uses non-grain raw materials. Guangxi is China’s largest cassava-producing region, with an annual output of 6 to 7 million tons of cassava, accounting for over 60% of the country’s total production. Technicians explain that high-concentration ethanol is a fuel with a high calorific value. Denatured fuel ethanol is mixed with gasoline in a certain ratio to produce ethanol gasoline for use in vehicles; its performance is no different from that of pure gasoline. It is currently the main measure adopted by various countries to address the oil shortage crisis. If 10% fuel ethanol is added to gasoline, no modifications are required to the engine. To support the commissioning of this project, Guangxi has launched efforts to promote the use of fuel ethanol across the region. Jiang Yong, deputy general manager of the Biochemical Energy Division of COFCO Group, said that using cassava as a raw material helps to implement China’s principle of developing biomass energy without competing with food production for resources, and it also helps to increase farmers’ incomes. With an annual production of 200,000 tons of fuel ethanol, approximately 1.5 million tons of fresh cassava raw material are needed, which can support 1 million mu of planting area. At this year’s guaranteed purchase price of 450 yuan per ton, farmers can earn an additional 300 million yuan.