The existence of grain ethanol and people's food
In 1999, Jilin Fuel Ethanol Co., Ltd., Heilongjiang China Resources Alcohol Co., Ltd., Henan Tianguan Fuel Group and Anhui Fengyuan Fuel Alcohol Co., Ltd. became the country's first fixed-point fuel ethanol production enterprises. By the end of 2005, all of the 1,200,000 tons of fuel ethanol capacity planned and constructed by these four enterprises had reached production capacity. Once the new policy of the State Council is issued, it means that the projects under construction of these companies will become government restrictions, and other new projects will be halted.
The official pointed out that in addition to the above-mentioned four domestic food production of ethanol, the government will no longer approve new projects. The existing four governments will also issue documents to emphasize their gradual transition to non-food alternative energy sources.
The official said that the existence of corn-based grain ethanol conflicts with people's food. Before the non-food ethanol gas technology was captured, the pilot areas of 9 provinces will not be expanded in the short term, and the pilot will still be carried out. The government will also conduct a new pilot in Nanyang, Henan Province to promote high-reference and flexible fuel vehicles.
Coal to oil is an unsustainable development project
The Shenhua Group's direct coal liquefaction project (ie, coal-to-oil conversion) costing 10 billion yuan in Ordos, Inner Mongolia, will be put into operation within this year. The first phase will produce 1.08 million tons of oil equivalent. The official stated that the coal-to-oil project was first costly, followed by high costs, especially water consumption, and Erdos itself was water scarce. Coal, as a chemical energy source, is itself non-renewable, and its oil production process is a kind of whole life energy consumption, and it uses less energy to exchange more energy. This cost-free development is not worthwhile, and it is not suitable for large-scale production. The commercialization is also not sustainable. The official also believes that technically speaking, there are still many difficulties that have not been overcome. Taking Shenhua’s coal-to-oil project as an example, it costs more than 100 million yuan, but its life cycle is far behind.
According to reports, China will insist on the development of non-food ethanol fuel.
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