CHINA’S ETHANOL GOAL BRINGS UNCERTAINTY AND MAY BE OPPORTUNITY FOR BRAZIL

Because of the need to improve air quality, China is seeking to boost ethanol use in its transportation sector. After encouraging domestic production, there are now signs that the Asian country may demand Brazilian biofuel: the goal would be to meet China’s E10 commitment (including 10% ethanol in gasoline) for 2020. The goal was born on September 13, 2017, when the China National Development and Reform Commission (CNDR), the National Energy Administration (NEA), the Ministry of Finance and 12 other ministries jointly announced the so-called Ethanol’s Expansion, Production and Promotion Implementation Plan for Transport Fuels. This measure was put by the Chinese government as part of national initiatives involving the Paris Agreement and as a guarantee that the country will reduce its consumption of fossil fuels. Therefore, in addition to reaching a 10% ethanol blend by 2020, the goal by 2025 is to have commercial-scale cellulosic fuel production capable of meeting demand.
Source: Nova Cana