COFCO said that the first non-food fuel ethanol project in Guangxi Zhuang Autonomous Region has begun production of non-food fuel ethanol. The annual production capacity of the plant will reach 200,000 metric tons, which will meet the demand of the Guangxi market for fuel ethanol.
The COFCO parent company, COFCO, is China’s largest food, oil, and food importer and exporter and producer. This traditional food company once launched a 10 billion new energy “transition†project that shocked the industry in October 2006 and implemented it. After five years, he became the "leader" of China's emerging energy industry.
The plant began trial production of the project in December last year. After a few months of operation, it has now produced 100,000 metric tons of fuel ethanol. COFCO is currently the largest domestic manufacturer and supplier of biofuels and fuel ethanol.
The use of food processing to produce fuel has been a bad comment. Because in the past year, food prices in China and around the world have been rising, and people are convinced that it is precisely this "offset business" that has affected the trend of food prices. However, unlike the former, a non-food crop, cassava, was used in the new energy plan of COFCO. This major breakthrough in the production of clean fuels using non-food crops as raw materials is a key step for COFCO's efforts to outline its new energy footprint.
In fact, new energy options using food as raw material are not applauded. China once explicitly restricted the use of food crops such as corn to process ethanol. In 2001, the State Council conducted trials in the four provinces of Heilongjiang, Jilin, Anhui and Henan, producing a total of 1 million tons of ethanol, and has not expanded since then. Due to the Mainland's ban on grain-based ethanol production, COFCO's stock price in Hong Kong dropped from last year’s high of HK$7.33, a cumulative drop of 28%.
The Chinese government has recently reiterated that it will strictly control the export of grain and food for industrial use, and resolutely curb the blind expansion of corn's deep-processing capacity. Construction projects that violate regulations will be suspended. In contrast, the new COFCO project, which has been able to resist food prices and oil prices, has clearly gained market acceptance. Yesterday, due to the news of Guangxi project put into production, the share price of China Agri Holdings rose against the trend, once rose 1.4%, closing prices fell to 5.2 Hong Kong dollars, up 1%.
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JINAN XINSHUNYUAN PACKING CO., LTD , https://www.xsy-packaging.com