China

There are very few initiatives dedicated to industrial biotechnology in China. Energy and biofuels policies can serve as a case-study for upcoming policies for other bio-based products.

Policy

From 1990 to 1999 the grain production in China increased fast, and the government spent large amounts of money to buy and store surplus grain. This situation was a main reason for the government to launch an ethanol fuel programme in 2000. The program was driven by 3 facts grain surplus, fuel shortage and air pollution.

New renewable energy laws took effect in China on 1 January 2006 and confirm the importance of renewable energy sources in China’s national energy strategy. The laws are designed to encourage investment in the development of biomass technologies in China by creating certainty in the Chinese energy market. The new law are intended to provide long term, coordinated and coherent approach to energy policy and provide a sustainable financial source for biomass energy projects.

The central government regulates the biofuel market and has confined production facilities to state-owned industry. China’s NDRC (National Development and Reform Commission) has been charged with guiding production and consumption. A National Ethanol Promotion Team promotes biofuel development, particularly E-10 (fuel made up of 90 percent gasoline and 10 percent ethanol) for automobiles.

Though the industry is new, government production goals are clear. China expects biofuels to meet 15 percent of its transportation energy needs by 2020.

Research and development

R&D grants for key biomass technologies are provided by the National Development Reform Commission and the Ministry of Science and Technology.

Research on bioethanol resources and conversion technologies has been undertaken since the 8th Five-Year Plan (1991-1995). At present government set up R&D programs on production technologies of bioethanol from different kinds of plant cellulose, starch, saccharum and other biomass resources like cellulose rich agricultural waste.

Market access

Capital investment subsidies are normally provided by central government in the form of low interest loans. Generous income tax concessions apply to some kind of enterprises during the first years of operation.

More information

Industrial biotechnology in China, Matthew Chervenak