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Wang Jinxiang said that China will increase research on non-grain raw material production of bio-energy, increase investment in research, development, and industrialization of bio-energy technologies, and establish financial funds to preferentially purchase independent innovation bio-products systems for bio-diesel, biomass power generation and Approved production of fuel ethanol and other important biological products to support.
Since the 1990s, China's demand for petroleum energy has entered a period of rapid growth, and oil consumption continues to grow. In 2004, China has become the world’s second largest oil consumer and importer. In 2007, China’s oil consumption reached 346 million tons, and the dependence on foreign oil imports reached 46.05%.
Under the background of continuous growth in energy demand and a marked increase in energy prices, China is actively developing renewable energy such as bio-energy to ensure national energy security. In September 2007, the state issued the "Mid-term and Long-term Development Plan for Renewable Energy," and clearly put forward the strategic focus and overall goals for the development of renewable energy in China. We will strive to achieve a renewable energy consumption of 10% of total energy consumption by 2010 and 15% by 2020.
China has stepped up its efforts to encourage the development of bio-energy, but insists on the principle of “not competing with people for grain, not competing with grain,†and strictly controls the use of biofuels such as corn and other grain and oil products.
Cao Xianghong, academician of the Chinese Academy of Engineering, pointed out at the forum that China has a large population and there are few grain and oil resources that can be used as bioenergy, but there are still huge potentials for biomass resources that can be used as bioenergy. 60% of the crop stalks can be used for energy purposes, and about 40% of forest residue is left unused.
He predicts that in the next 30 years, China can develop at least 2 billion tons of biomass energy and 1 billion tons of standard coal.
China's bio-energy technology innovation and industrialization have made some progress. The sweet sorghum fuel ethanol production process developed by Tsinghua University has completed the pilot project and demonstration plant design, and will soon be industrialized; the bio-gasoline and bio-products produced by the Shandong Quanxing Stone Industry Group's “Molecular Merger†biofuel industrialization project. The diesel quality index has surpassed the European and American standards. At present, a 150,000-ton biofuel production line has been built, and a production line with a capacity of 1 million tons will be built in Zaozhuang.
Wang Jinxiang, deputy director of the National Development and Reform Commission, said at a second high-level forum of the China Bioindustry Conference that a number of emerging industries such as China’s bio-energy are being formed, and the industrialization of non-grain raw material fuel ethanol such as cassava and sweet sorghum has been accelerated. Diesel and straw power generation projects are under construction and investment has grown rapidly.