China will this year invest more in biomass ethanol projects over maize-based ones because of a lack of grain.

"The current maize-ethanol production capacity has far surpassed what the corn output can provide as an important grain resource," Du Ying, vice-minister of National Development and Reform Commission, said.

Related readings:  Nation to issue stricter rules on ethanol production  thanol output has corn prices popping  COFCO to invest US$1b in ethanol

In Jilin Province in Northeast China, there are more than 50 maize ethanol enterprises, totalling the yearly production capacity of 30 million tons.

Du Ying, vice-minister of the National Development and Reform Commission, answers questions on new energy, at a CPPCC meeting yesterday on proposal-handling.

"We are still piloting biomass, namely straw, chaff and stalk, ethanol projects in some areas," the official said.

"We also support clean energy projects such as clover-ethanol and straw-methane ones."

Though the minister admitted that technological development in biomass ethanol research was relatively new and less advanced compared with the likes of Brazil and the United States, an official with Ministry of Agriculture said there might be technological breakthroughs in the near future.

"We are researching all kinds of biomass energy options, and others include sorghum ethanol and cole diesel oil projects," Yang Xiongnian, deputy director of science and technology, education and rural environment department of the ministry told China Daily.

"But establishing new maize ethanol projects should be temporarily stopped."

The Ministry of Finance held a special work conference yesterday to discuss funding policies for future biomass energy projects.

Both Du and Yang contributed to discussions between four state ministers and members of the Chinese People's Political Consultative Conference (CPPCC).

Besides being the top advisory body, CPPCC is also the country's think tank with senior experts from all sectors, such as Ren Yuling, from the State Council.

1

2

(For more biz stories, please visit Industry Updates)