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2007 Biodiesel Industry Review and Outlook

2008-01-07View Original

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Original link of this article http://www.cbbf.cn/bencandy-16-164-1.htm In recent years, due to the soaring oil prices, bioenergy has developed rapidly at home and abroad, among which biodiesel and fuel ethanol have developed the fastest. The industrial production of biodiesel in my country is a few years later than that of foreign countries. Only after 2001 did industrial units come into operation one after another. These mainly include Hainan Zhenghe, Fujian Zhuozhou, Sichuan Gushan, etc., all of which have established biodiesel plants of about 10,000 to 20,000 tons/year. The raw materials basically use waste oil, acidified oil, etc. As crude oil prices rose further in 2005, biodiesel became more and more popular in China, and various large, medium and small factories emerged one after another. However, this good times did not last long. because * * There are no specific incentive policies for biodiesel. Coupled with raw material problems, market problems, etc., in the second half of 2006, some companies began to suspend production/stop construction or transform. Industry insiders also looked at the emerging domestic biodiesel industry with a more calm eye. It is against this industry background that biodiesel entered 2007. What other important events happened in the biodiesel industry in 2007? What is the impact on my country's biodiesel industry? China Bioenergy and Chemical Industry Network reviewed and looked forward to my country's biodiesel in 2007, mainly including: State-owned enterprise giants begin to get involved in biodiesel ; BD100 standard released and recommended for implementation ; Wenzhou Biodiesel Conference held ; Develop non-food bioenergy ; Energy Law (Exposure Draft) released. 1. State-owned enterprise giants began to get involved in biodiesel. Before 2006, among the three oil giants (CNPC, Sinopec, and CNOOC), only Sinopec was quietly researching biodiesel production technology and investigating biodiesel raw materials. It was difficult to see the movements of PetroChina and CNOOC in various media. Perhaps everyone thought that the oil giants would not pay much attention to biodiesel, but at the end of 2006 and the beginning of 2007, when private enterprises began to find this difficult to crack and prepared to withdraw, state-owned giants began to take action and intervened in the biodiesel industry with great fanfare. In addition to the oil giants, COFCO Oil, which seems to have nothing to do with energy, has also begun to enter the bioenergy industry and established a biochemical energy division to promote the development of fuel ethanol and biodiesel. Technically, the biodiesel production technology developed by Sinopec has completed pilot testing in Shijiazhuang and is about to be industrially applied. ; PetroChina has established a research and development base in Nanchong to vigorously research biodiesel and will establish a pilot plant ; CNOOC is also actively operating, contacting and cooperating with all parties. In terms of raw materials, the three major oil giants began to compete for woody oils and fats at home and abroad.: Jatropha curcas and palm trees. PetroChina and * * The Forestry Bureau signed an agreement to build the first batch of forestry biomass energy bases in Yunnan and Sichuan starting in 2007, covering an area of ​​more than 600,000 acres and capable of supplying more than 60,000 tons of biodiesel raw materials. It has successively cooperated with Sichuan Province, Yunnan Province and Shandong Province. * * Enter into an agreement on strategic cooperation in the development of biomass energy. Sinopec plans to invest billions of dollars to plant palm trees in Indonesia, and plans to plant Jatropha curcas in Yunnan, Guizhou and other places. CNOOC plans to build a first-phase refining unit in Dongfang City, Hainan, with an annual output of 50,000 tons of biodiesel. The required raw materials will initially be imported from Southeast Asia. At the same time, CNOOC has also planted hundreds of thousands of acres of Jatropha curcas (also known as Jatropha curcas) in Hainan. After the raw material base is completed and scaled up, the raw materials for the refinery can be converted into Jatropha curcas. At the same time, CNOOC and Indonesia’s Sinar Mas Agro Resources and Technology, * * Hong Kong Energy Holdings signed an agreement to jointly invest US$5.5 billion to develop biofuel projects in two remote provinces in Indonesia. COFCO and the Forestry Administration are cooperating to develop forestry biomass energy. The two parties have decided to comprehensively strengthen cooperation in forestry biomass energy, focus on building a number of energy forest bases, and develop and utilize three major products: forestry biodiesel, fuel ethanol, and woody edible oil. Starting this year, the two parties will build raw material forest demonstration bases with an annual output of no less than 20,000 to 30,000 tons of bioliquid fuel in Guizhou and other provinces. COFCO also signed an agreement with Shandong Province to cooperate in the development of bioenergy. Dr. Gao Jianming, general manager of the M&A Department of Guangdong Securities, believes that the three major domestic oil giants have rushed to seize my country's main forestry bioenergy raw material base and invested heavily in establishing their own planting bases to seize resource advantages. The strategic intentions behind it are self-evident.: With the gradual depletion of fossil energy, the demand for oil and oil prices continue to rise, and the international community may cut or block my country's oil imports at any time, all of which indicate that my country's energy supply is not guaranteed. Oil is the blood of the national economy. If it is not replenished and supplied in time, the Chinese economy will suffer a nightmare disaster. Obviously, the three major oil companies' pursuit of biomass energy that can replace fossil energy has important strategic significance for the sustainable development of China's economy. For the future development of biodiesel, the key is raw materials! If the current trend continues, China Bioenergy and Chemical Industry Network believes that a polarized situation will likely occur.: 1) Individual "workshop-style" small factories - cooperating with local gutter oil purchasers or purchasing them themselves - have raw material advantages and price advantages, and are easy to find markets, so as long as they * * If the closure is not forced, it may exist for a long time. According to the current national conditions, * * I'm afraid it will be difficult to force the door to close. 2) Large factories of state-owned energy giants with more than 50,000 tons/year - investing in planting trees by themselves - have raw materials, and the price of self-planting is cheap, and the market does not have to worry about it, and it can be obtained * * Policy support will become the mainstream. 3) For the larger private enterprises in the middle, on the one hand, it is difficult to purchase a large amount of cheap raw materials such as waste oil and acidified oil; on the other hand, they do not have the power to plant trees on a large scale; they also have to consider market issues, etc., and may be in a passive situation in future development. in the final analysis: energy by * * Controlled by its subordinate state-owned enterprises. This is true for petrochemical fuels, fuel ethanol is actually true, and the future development of biodiesel is likely to be true as well! 2. The BD100 standard is released and recommended for implementation. my country’s first biodiesel standard drafted by the Petrochemical Science Research Institute and other units * * standard, has been * * The General Administration of Quality Supervision approved the implementation from May 1. This is ethanol gasoline * * After the implementation of the standard, the second type of biomass alternative energy released by our country * * standard. At present, the use of diesel in my country is mainly concentrated in agricultural power machinery and road, waterway and railway transportation power machinery, similar to that in the United States. Therefore, my country's biodiesel standard technical requirements are based on the American Society for Testing and Materials standard ASTM D6751-03a "Biodiesel (B100) Standard for Distillate Fuel Blending", and are determined based on comprehensive consideration of the situation based on inspections and tests of biodiesel products produced with different raw materials that have had a certain influence and sales volume in the domestic market in recent years. According to Professor Zhang Yongguang, drafter of the standard and director of the Fuel Oil Products and Additives Research Office of the Institute of Petrochemical Science, my country’s biodiesel * * The standard includes a total of 17 technical requirements items and limits, namely density: 0.82~0.90kg/m3 ; The minimum value of kinematic viscosity is 1.9mm2/s and the maximum value is 6.0mm2/s ; Flash point above 130℃ ; The cold filtering point adopts the reporting method ; Two indicators are set for sulfur content, namely no more than 0.05% and 0.005% ; 10% steam residue carbon residue is not more than 0.3% ; Sulfate ash content is not more than 0.02% ; Water content 0.05% ; No mechanical impurities allowed ; The corrosion of the copper sheet is not greater than level 1 ; The cetane number is not less than 49 ; Oxidation stability is not less than 6.0 ; The acid value is not greater than 0.80 ; Free glycerol does not exceed 0.02% ; Total glycerol does not exceed 0.24% ; 90% recovery temperature does not exceed 360°C. These requirements take into account that the use of biodiesel in my country is mainly as a component fuel in a proportion of 5% to 20% blended with ordinary mineral diesel. If 100% biodiesel is used, separate standards need to be formulated or the index requirements of this standard need to be adjusted. Other biodiesel standards that are being formulated or submitted for approval are as follows:: 1) The petrochemical industry standard "Gas Chromatography Method for Determination of Free Glycerin and Total Glycerol in Biodiesel" has been completed and has entered the approval process. 2) The petrochemical industry standard "Accelerated Oxidation Method for Determination of Oxidation Stability of Biodiesel (Fatty Acid Methyl Ester)" has been completed and has entered the approval process. 3) * * The standard "diesel fuel containing 5% (10%) biodiesel" is being formulated. 4) The analytical method standard "Determination of biodiesel (fatty acid methyl ester) content in diesel engine fuel by infrared spectroscopy" is being formulated. 5) The analytical method standard "Gas Chromatography for Determination of Ester Content in Biodiesel (Fatty Acid Methyl Ester)" is under development. 3. Wenzhou Biodiesel Conference was held in September. The "2007 China Biodiesel Industry Development Conference and the Second National Biodiesel Industry Cooperation Group Annual Meeting" was successfully held in Wenzhou. This event attracted nearly 200 scientific researchers, economists, entrepreneurs and association representatives from all over the country in the field of bioenergy. Many leaders and experts gave wonderful reports at this conference. During the meeting, experts and representatives had in-depth discussions on the current situation and future development of the biodiesel industry. They agreed that under the current background of increasingly tense fossil energy and renewable energy development becoming the focus of the industry, there are huge business opportunities for the development and utilization of biodiesel. But on the other hand, * * The "Eleventh Five-Year Plan" for bioenergy clearly stipulates that the development of biodiesel is not allowed to compete with grain for land, and the source of raw materials has become a bottleneck for the current industry development. Professor Ning Shojian, an expert in the technical group of China Bioenergy and Chemical Industry Forum, introduced and commented on this meeting. A brief summary is as follows: From the atmosphere of the meeting, I felt that biodiesel was not as "cold" as everyone thought, but "calm", but underneath the calmness there was still a heart beating with unabated enthusiasm! The symposium was very successful and gave the representatives a chance to speak. Everyone was able to speak freely! The theme of the symposium basically focused on the supply of raw materials, and everyone was extremely enthusiastic about Jatropha curcas! I hope everyone will treat it calmly! To borrow a sentence from Principal Song Baoan: Scientific planning and steady advancement. At this meeting, Professor Zhang Zhengmin * * Introduced at the macro level * * Regarding the policy of biodiesel (biomass energy), a forecast plan of "by 2020, biodiesel will reach 2 million tons" is given. Senior Engineer Lin Jianmin gave an explanation of the B5 biodiesel standard, which is the overall standard for "5% biodiesel and 95% petrochemical diesel mixture". Professor Andy Lau introduced the production of biodiesel through enzyme catalysis, the synthesis of propylene glycol from glycerol, and the companies that cooperate with them, etc.! Professor Li Guiying's report answered the question about the impact of Jatropha curcas on ecological balance from the perspective of ecological balance. The conclusion was that within a local area of ​​1,000 acres, there would be no ecological problems (Principal Song also meant this) ; At the same time, the theme of his report is: The use of biomass energy is a forced choice for mankind! President Song’s report on Jatropha curcas gave investors who were overly enthusiastic about Jatropha curcas a shot of tranquillizer. It was very timely. For the biodiesel industry, Jatropha curcas is another hot spot after the initial investment craze in biodiesel in 2005 and 2006. It is gratifying that this craze was treated calmly by heavyweight experts at the beginning, which will avoid unnecessary losses for many investors. 4. Develop non-food bioenergy. World food and edible oil prices rose sharply in 2007. One of the key reasons is the development of biofuels. In the past year, the prices of soybean oil, rapeseed oil, and palm oil in my country have all increased by more than 50%. With vegetable oil prices rising collectively, domestic prices of oilseeds such as soybeans, rapeseed and peanuts have also risen significantly. Obviously, "food energy" will likely affect food security. The latest technological progress and expert research conclusions indicate that: Encouraging the development of non-food biomass energy is the fundamental way to solve my country's food security and energy security. Academician Shi Yuanchun pointed out that China can develop its biomass energy industry without relying on food. The two main raw materials can be provided by agriculture and forestry (including organic waste from urban industry) and the use of marginal land to grow energy plants. He outlines the future prospects for biomass energy as follows: Every year, 50% of the country's crop straws, 40% of livestock and poultry manure, 30% of forestry waste and about 5.5 million hectares of marginal land are used to plant energy plants, and about 1,000 biomass conversion plants are built. The production capacity can be equivalent to the annual production capacity of 50 million tons of oil, which is equivalent to building another Daqing oil field. The development of non-grain biomass energy will not occupy cultivated land, nor will it pose a threat to my country's food security. It avoids the phenomenon of "removing the east wall to pay for the west wall" in terms of food security and energy security. ; It is conducive to solving the "three rural" issues and promoting the construction of a new socialist countryside. Non-food biomass energy is made from organic wastes such as agriculture and forestry and energy plants grown on marginal land. Agriculture is an important source of biomass energy and biomass industry. Our country has 116.08 million hectares of marginal land that can grow energy plants such as sweet sugar cane, cassava, and xerophytic shrubs, with great annual production potential. Making full use of these marginal lands is conducive to the adjustment of the agricultural industrial structure, promoting rural industrialization and urbanization, increasing agricultural income, increasing farmers' employment opportunities, increasing farmers' income, promoting the development of the rural economy, promoting the solution of the current "three rural" problems to a certain extent, and promoting the construction of a new socialist countryside. Specific to biodiesel, "non-grain raw materials" come from "energy plants grown on marginal land", such as planting Jatropha curcas, Pistacia chinensis, etc. to produce oil seeds and extracting oil, which is used as biodiesel raw materials. * * At the policy level, restrictions on "the conversion of edible oils and fats such as rapeseed into biodiesel" have also been considered. The relevant person in charge of the Ministry of Agriculture responded to reporters’ questions on how to use vegetable oil to produce biodiesel in some areas of our country. He stated that “my country will adhere to food priority and strictly control rapeseed biodiesel projects. At the same time, the export of oilseeds and edible vegetable oils must be strictly controlled.” Considering my country's national conditions, non-grain biodiesel will be the general trend: In the near future, the raw materials are mainly waste oils or non-edible oils, such as gutter oil, acidified oil, animal fat, etc. In the medium and long term, they will be woody vegetable oils and even seaweed. 5. Energy Law (Draft for Solicitation of Comments) Released In December 2007, the Energy Law (Draft for Solicitation of Comments) was released to the public. The energy law has been drafted for more than two years. In May and October 2005, the Energy Law Research Society of China Law Society * * Commissioned by the Energy Bureau of the National Development and Reform Commission, two project opening meetings were held in Beijing, and then the Premier of the State Council * * He personally directed the drafting of the Energy Law until January 2006, when the Energy Law Drafting Group was established. The drafting group consists of * * Director of the National Development and Reform Commission, * * Ma Kai, director of the Energy Office, served as the team leader, and a total of 15 units participated in the formulation, including the Central Committee Staff Office. The energy law solicitation activity is scheduled to end on February 1, 2008. Regarding the timetable for the introduction of the Energy Law, some experts said that "the most optimistic time for the introduction of the law will not be until 2009." The Energy Law (Draft for Comments) stipulates the development of biomass energy.: Article 36 [Clean Energy Development] clearly stipulates: * * Encourage the development of clean, low-carbon energy such as hydropower, nuclear energy, natural gas, coal bed methane, wind power, biomass energy, solar energy, geothermal energy, and ocean energy on the basis of protecting the ecological environment, and increase the proportion of clean energy in the energy structure. Article 84 [Rural Biomass Energy Development] Provisions: * * Encourage the rational use of barren hills, tidal flats, saline-alkali lands and other land unsuitable for growing food crops to grow energy crops on the premise of protecting the ecological environment. It is prohibited to occupy basic farmland to develop the biomass energy industry. Obviously, * * Encouraging the development of bioenergy, but "prohibiting the occupation of basic farmland" means using marginal land to develop "non-grain" bioenergy. As a renewable energy source, bioenergy has attracted worldwide attention and has been vigorously developed. In Brazil, the United States, Europe, etc., ethanol gasoline and biodiesel have reached considerable scale. other * * , such as Japan, India, Indonesia, etc. * * We are also vigorously developing bioenergy. In this large-scale situation, our country is no exception, and bioenergy has also achieved certain development.: The current production capacity of fuel ethanol has exceeded 1 million tons/year, and the production capacity of biodiesel is at least 100,000 tons/year. The development of bioenergy is of great significance to our country: It can adjust the energy structure, protect the ecological environment, increase employment opportunities, increase agricultural and forestry income, and promote social harmony. therefore * * It attaches great importance to bioenergy, and the inclusion of "development of biomass energy" in the energy law clearly illustrates this point. However, in the field of bioenergy, the situation at home and abroad varies greatly. Europe, the United States and Brazil can allocate farmland to grow energy crops, but China cannot develop like this - after all, there are 1.3 billion people who need to eat. * * We are also aware of this. This year's suspension of grain ethanol is an obvious example. In addition, not encouraging the development of rapeseed biodiesel also illustrates the same problem. Energy law regulates this from a legal perspective. source: This post on China Bioenergy and Chemical Industry Network was last edited by icmhuzi on 2008-1-7 13:44 ]

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