China Chemical

Guangxi Province, China said Wednesday officials from the beginning of December this year, the province will launch a gasoline blending 10% ethanol program.

Over the past few years, China has nine provinces to promote the use of ethanol gasoline, use of bio-fuels to reduce pollution, reduce dependence on oil fuel.

Guangxi Development and Reform Commission officials said Wednesday, as a bio-fuel plant will be put into operation, the province is ready to begin use of fuel ethanol.

China Oil Holdings Limited plant, which can produce 200,000 tons annually of fuel ethanol, raw materials for cassava.

China second only to Brazil and the United States as the world’s third largest ethanol producer, plans to 2010 when annual gasoline blending two million tons of ethanol, higher than the current 1.02 million tons.

But in the grain industry are worried that the ethanol plant cassava this could lead to supply shortages cassava, may have to import from Vietnam and Thailand cassava. Industry experts estimate that the factory if the full capacity to run, at least on an annual basis to import 300,000 tons of cassava, because the local supply is only enough to meet one third of the demand for raw materials.