Tiger Ethanol to build 25 Mgy sugar beet ethanol plant in Xinjiang, China

In China, Tiger Ethanol said it will build a sugar refinery and sugar beet ethanol facility in Xinjiang province. The plant will reach a capacity of 6 Mgy before the end of the first year of production, and will initially use corn as a feedstock but will convert to sugar beets in 2009. The plant will have a capacity of 25 Mgy by 2012.

In October, Tiger Ethanol announced that its Hami Ethanol plant would complete construction more than four months ahead of schedule. The plant’s owners noted that local ethanol prices have increased 15% for ethanol in the past seven months and 50% for distillers grains, while feedstock prices have remained steady. The plant will use a balance of 85 percent corn and 15 percent sugar.

The Hami plant is based in Xinjiang Province, in far western China, a poorer area targeted by the national government for biofuels-related development.

China has recently announced abandonment of ethanol projects that use foodstocks, excepting existing plants and those already under construction. China is the third-largest ethanol producer, behind Brazil and the US. Guangxi province has recently mandated E10.

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