China to go back to corn-based ethanol in a major way

In China, local governments are looking to reverse the 2006 policy that banned corn-based ethanol in response to overwhelming stocks, with as much as 30 million metric tons of corn potentially too moldy for human consumption. Heilongjiang, Jilin and Liaoning are regions where up to 1 million tons of installed ethanol production capacity could be built if the National Development and Reform Commission (NDRC) gives the OK for the policy shift. Already COFCO has agreed to build two 300,000 ton facilities in Heilongjiang province when policy is approved. It is estimated China’s gasoline may already be blended with up to 20% ethanol.

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