China’s ethanol ambitions stymied by US trade war

July 5, 2018 |

In China, Reuters reports that only one new corn-based ethanol plant will be commissioned soon while others remain in the planning stage, an indication that perhaps the country is rethinking its rush towards a 2020 E10 blending mandate. It would have to rely on US ethanol imports in the short term, but in light of the escalating trade war with the US that could no longer be a solution, so a policy shift may be in the works. The State Development Investment Corp is said to bring its 300,000 metric ton per year facility in Liaoning province online in August, while reports last year included another five plants could be under development, but that hasn’t been reconfirmed recently. COFCO is waiting for the green light from local government in order to move forward with three planned 300,000 ton per year plants in Heilongjiang as well as two other plants in other regions totaling another 950,000 tons.

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