Meeting with Jiangsu DRC Energy Administration

2015-11-09 | Nanjing

On Monday 9th November 2015, the Director of New Energy and Renewable Energy Department in Jiangsu DRC Energy Administration, Mr. Tang Xuewen met with the European Chamber Nanjing Chapter. This is the first contact between the European Chamber Nanjing Chapter and the Jiangsu DRC Energy Administration. On the meeting, the Novozymes was introduced to the department as the advisory council of the European Chamber. Meanwhile, policies in regard to biofuel were discussed.

Ø  The national ethanol vehicle gasoline pilot in Jiangsu

·         As a national ethanol vehicle gasoline pilot province, the ethanol/gasoline mixture was used in the Northern Jiangsu around 10 years. It’s part of the fuel-ethanol programs in China. However, the National Development & Reform Committee has not done the program evaluation and issued any expansion plan up to now. 

·         The pilot program operated by China Oil & Foodstuffs Corporation (中粮集团) together with several state-backed firms. In addition to the policy support, they received the government subsidies.

Ø  The timing for the biofuel business in China is immature

·         Government promised to “intervene in the market” in China. Therefore, the market would be the awkward problem of the industry. The state-backed firms even cannot deal with the concerned issues independently; it would be more difficult for foreign companies to solve it.

·         Investor has to consider the policy fluctuation. Taking the fuel-ethanol program as example, the program derived from the rising energy demand and excess of aged grain in China. It was launched in 2004.  Chinese central government even stated to regulate corn-based fuel-ethanol production (Statement from National Development and Reform Commission in 21/12/2006).  However, concerning the fuel-ethanol is competing with feed, food and other consumptions; no more positive policy is adopted to encourage the development of fuel-ethanol program in recently years.