Due to growing concerns over food safety, fuel ethanol—once seen as a promising alternative energy source—may not see rapid development in the future. According to the Medium- and Long-Term Plan for Renewable Energy, by 2010, the annual production capacity of fuel ethanol is expected to reach 2 million tons, with an average growth rate of less than 6%. By 2020, this capacity is projected to rise to 10 million tons.
Despite these limitations, fuel ethanol has experienced significant growth in recent years. In 2006, its capacity reached 1.3 million tons, reflecting a 25% increase from the previous year. Another form of biofuel, biodiesel, is also gaining traction. Made from oil crops or fiber plants, biodiesel is expected to reach 200,000 tons by 2010 and 2 million tons by 2020.
China, being a country with a huge demand for food, has imposed strict regulations on the use of grain-based fuel ethanol. Instead, it encourages the use of by-products from grain processing, as well as non-food materials like cassava, straw, and other cellulose sources. In the near future, China plans to develop fuel ethanol and biodiesel projects with a scale of at least 50,000 tons. The country is also focusing on comprehensive energy utilization and making full use of existing production capacities. Current demonstration projects include 400,000 tons of sweet sorghum-based fuel ethanol, 600,000 tons of potato-based fuel ethanol, and 100,000 tons of Jatropha-based biodiesel.
Beyond food security, the large-scale adoption of biofuels is also limited by performance and quality issues. Ensuring the safety and stability of different types of biofuels requires extensive testing and standardized quality regulations. Since these fuels will be used in various vehicles, consistent standards are essential for their safe and effective application.
The development and promotion of biofuels must be carefully managed. Before widespread implementation, policy frameworks and technical standards need to be fully established. From a policy perspective, bio-energy companies should receive both market and regulatory support. This includes offering tax incentives and financial assistance, as well as creating clear guidelines for integrating bio-liquid fuels into the existing fuel distribution system and removing market barriers.
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