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On 29 May, 2014, Shandong Longlive Bio-technology Co., Ltd. (Longlive Bio-technology) made an announcement that the company's board of directors had decided to set up a wholly-owned subsidiary in Longjiang County, Heilongjiang Province, where a 400,000t/a comprehensive utilization project of straw would be built with an investment of USD169 million. Once the project completed, it can realize the joint production of cellulosic ethanol, sugar, heat and electricity. In fact, in Nov. 2013, Longlive Bio-technology had already announced that its new project on processing 200,000 t/a of straw was approved to be established in Dezhou City, Shandong Province, which is mainly to produce cellulosic ethanol with a capacity of 30,000 t/a (for more detail, please refer to Corn Products China News 1311: LongliveBio-technology commits to developing cellulosic ethanol). The capacity of Longlive Bio-technology's cellulosic ethanol will increase from 60,000 t/a to around 120,000 t/a when these two projects put into production, according to Corn Products China News 1406 in June by CCM.
Based on the following advantages, Longlive Bio-technology will build the comprehensive utilization project on processing 400,000t/a of straw in Longjiang County, Heilongjiang Province. First of all, Heilongjiang Province is one of the three main corn production areas, which can guarantee the sufficient supply of raw material (corn straw). Secondly, Longjiang County's government had promised to Longlive Bio-technology that other projects on processing the same raw material won't be approved in its territorial jurisdiction if Longlive Bio-technology's project can go into operation normally. Besides, the government will be responsible for the supervision and regulation of the purchasing price of the raw material (corn straw) in order to prevent the raw material price from increasing due to non-market factors. However, if the raw material price rises by more than 10% due to the non-markets factors, then 50% of the rising price will be allowanced by the government. Last but not least, the country has adopted the policy of designated production and directional selling for Longlive Bio-technology's cellulosic ethanol. Therefore, Longjiang County government promised to help Longlive Bio-technology to sign sales agreement with China Petrochemical Corporation (Sinopec Group) or China National Petroleum Corporation on cellulosic ethanol.
The cellulosic ethanol of Longlive Bio-technology is suitable for environmental protection. For one thing, cellulosic ethanol is renewable energy source which can ease the energy crisis in China. For another thing, adding cellulosic ethanol to motor gasoline can reduce car exhaust emissions. Consequently, the air quality will be improved.
It's worth noting that the company's sales volume of cellulosic ethanol only totaled about 31,576 tonnes in 2013, much lower than the capacity and the supply approved by the National Development and Reform Commission, according to 2013 annual report of Longlive Bio-technology. The reasons of the slow development of the company's cellulosic ethanol were disclosed by the chairman secretary on 15 May, 2014 as followings: First, the national subsidy policy toward cellulosic ethanol hasn't been issued. Second, under the impact of the internal reforms in Sinopec Group, the schedule of the cooperation between Longlive Bio-technology and Sinopec Group was later than expected.
Table of Content: Corn Products China News 1406
Draft Amendment to Trademark Law Implemented
Sugar Alcohol Manufacturers Witness YoY Fall in Gross Profit Margin during Jan.-May 2014
Chinese Government Suspends Application for DDGS' Import License
Consumption of Corn Increases in Domestic Feed Industry in 2013
Longlive Bio-technology to Further Expand Production of Cellulosic Ethanol
Sorghum Imports Increases Sharply during Jan.-April 2014
Chinese Corn Products Imp. & Exp., April 2014
China’s Lysine and Lysine Ester & Salt Witness Increase in Exports in April 2014
China’s Corn Starch Exports: Both Volume and Price Fall in Jan.-April 2014
Price Update of Corn Products, June 2014
Ex-works Price of Citric Acid in China Falls in May 2014
Ex-works price of MSG in China starts to rebound in May 2014
China Starch's Net Profit Falls during Jan.-April 2014
China’s Corn Witnesses MoM Increase in Imports and Exports in April 2014
China's Imports of DDGS Increases in April 2014
China's Agglomerate Xylitol Returned by Japan and US
Ex-works Price of Starch Sugar Witnesses Slight Rise in May 2014
Provincial Amino acid R&D Center of Ningxia Approved
DOC Adjusts Anti-dumping Margin on China's MSG Exporters
Baolingbao Obtains Carbon Footprint Certification for Erythritol
Market Price of Furfural and Furfuryl Alcohol Starts to Rebound in May 2014
Amendment to National Standard for Feed label Taken Effect from 1 July, 2014
Corn products, including corn cob, corn straw feedstock and their downstream products, developed fast in recent years, especially corn deep-processing products. Corn products are widely used in feed, food, pharmaceutics, energy and chemical industries, which makes them closely related to our daily life. As China is the largest producer and exporting country of some corn products such as citric acid, monosodium glutamate, vitamin C and vitamin B2, etc., corn products in China attract great attention from all over the world. Even though the Chinese government has launched a number of policies to inhibit the precipitated development of the corn deep-processing industry, corn products are considered promising in the future. The government has also launched some policies to encourage the development of some corn products such as minority amino acids (amino acids except for glutamic acid and lysine), functional sugar, cellulose ethanol and corn oil, attracting great attention as well because it may be a good investment chance for multinational enterprises. On the whole, the Corn Products China News can give you quantities of market information and policies about food, feed, energy, pharmaceutics, chemical industries in China and let you find what you need.
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