Biolux to build 85 Mgy biodiesel plant in Nantong; plant will be China’s largest

The managing director of Nantong Biolux Bioenergy Feed told the Reuters Global Agriculture and Biofuel Summit that Biolux plans to build an 85 Mgy biodiesel facility in Nantong, and that it would be the largest in China. Operations at the facility will commence in 2009. Projected project cost is $118.5 million.

As China continues to ramp up biodiesel production, General Biodiesel announced last week that it will construct biodiesel plants in Beijing, Shanghai, Guangzhou, and Wenzhou in a $100 million direct investment. The announcement comes as China increased its biodiesel production target to 200,000 tons by 2010 and two million tons by 2020.

China also recently announced that jatropha cultivation will be expanded from 66,000 acres to 660,000 acres. The expansion is planned for Yunnan, Sichuan and Guizhou provinces, which have the most suitable climate for jatropha cultivation. The expansion takes place under the auspices of China’s Green Poverty in Reduction program which was launched in 2006. The $8.5 billion project is a joint venture between the United Nations Development Programme (UNDP), China’s Ministry of Science and Technology and the Ministry of Commerce. The project aims to develop biofuels and other eco-friendly projects in China’s poorer western provinces.

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