Chinese biofuel market ready to catch fire

In the UK, development of biodiesel started late in China, serving as one of the industries vigorously supported by the government. China has released Renewable Energy Law and National Standard for Biodiesel (B5) Blend in 2005 and 2010, respectively. In 2013, China´s total capacity of biodiesel exceeded 3.7 million t/a, output attained 1-1.2 million t/a, indicating the capacity utilization was not high.

However, with the implementation of National Standard for Biodiesel (B5) Blend and the expansion of application range, it is estimated that China´s new consumption of biodiesel during 2014-2017 will go beyond 2.5 million tons. Following the formal implementation of consumption tax at the biodiesel import links on January 1, 2014, coupled with other policies support as well as the optimism of enterprises about the biodiesel market, there are still many biodiesel projects proposed and under construction in China. As of the end of May 2014, major biodiesel projects proposed and under construction have boasted a combined capacity of over 2.7 million t/a.