China's Avant-Garde Agrarian Policies Provide Fresh Impetus to its Biofuel Market

BEIJING--(Business Wire)--
China's quest for renewable energy options has opened new avenues
for its biofuel market. The country has been intensifying efforts to
find suitable solutions to address its energy concerns, and biofuels
have emerged as an obvious solution, as they do not exhibit the
detrimental climate changing effects associated with fossil fuels.

New analysis from Frost & Sullivan,
(http://www.chemicals.frost.com) Strategic Analysis of the Chinese
Biofuel Market, finds that the market earned revenues of $1.26 billion
in 2007 and estimates this to reach $4.02 billion in 2014.

If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an
overview of the Chinese biofuel market, then send an e-mail to Amelia
Wong, Corporate Communications, at amelia.wong@frost.com, your full
name, company name, title, telephone number, company e-mail address,
company website, city, state and country. Upon receipt of the above
information, an overview will be sent to you by e-mail.

China is crafting an environmental-centric economy, sparing no
efforts to progress in this direction. Since 2005, the government has
formulated various plans, strategies, and guidelines pertaining to the
biofuel industry, particularly feedstock.

"Under China's long-term development plans for renewable energy,
tax exemption and financial subsidies were offered to encourage
biofuel production, since the market is currently constrained by the
shortage of feedstock and the lack of a complete regulatory system,"
says Frost & Sullivan Consulting Analyst Frank Xie.

China has revolutionized its biofuel market by picking up cues
from the United States and Brazil, the world leaders in biofuel
production. For instance, a series of policies and regulations have
been mapped out to support the development of bioethanol. Meanwhile,
China is also reviewing the first national biodiesel standard, which
will streamline market conditions.

These measures emerged in the aftermath of the realization that
biofuel is vital to secure the country's energy supply stability.
However, since the Chinese biofuel market took its shape only in 2000,
biofuel feedstock cultivation is still in the experimental stage and
large-scale supply of feedstock is not available at the moment.

Keeping in mind the security status of food in China, a ban has
been imposed on the use of food crops for the manufacture of biofuels.
A fallout of this move is the reduction in the availability of land
for biofuel cultivation, making feedstock supply fall short of
production demand.

"The government is looking to remedy this situation by encouraging
rural residents to cultivate biofuel energy crops by offering
subsidies," observes Xie. "Not only does it provide cleaner fuel, but
also creates more job opportunities and increases income levels in the
rural sector."

Factors such as the availability of land for energy crop and the
status of food security in China will determine whether feedstock
supply can meet the requirements of China's highly potent biofuel
industry. China is continuing to explore pragmatic solutions to scale
up production in the short term and investing a great deal of effort
on the implementation of tactical strategies, such as technological
advancement, subsidies allocation, tax exemption, and reorientation of
government policies.

Strategic Analysis of the Chinese Biofuel Market is part of the
Chemicals and Materials Growth Partnership Service program, which also
includes research in the following markets: biodiesel market and
bioethanol market. All research services included in subscriptions
provide detailed market opportunities and industry trends that have
been evaluated following extensive interviews with market
participants. Interviews with the press are available.

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Strategic Analysis of the Chinese Biofuel Market

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Frost & Sullivan
Amelia Wong, +86 21 5407 5783, ext. 8686
Corporate Communications - China
F: +86 21 5407 5825
amelia.wong@frost.com
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