The International Energy Agency or IEA reported that Global biofuel production is forecast to rise by 25% by 2024. Especially, China will lead output growth for the first time. In addition to biofuels, renewable electricity provides around 10% of renewable energy in transport by 2024, most of which is in China.
China has for the first time set a targeted timeline to roll out the use of ethanol in gasoline nationwide for cars by 2020, part of its efforts to clean up pollution and optimize the country’s energy mix.
The plan was unveiled as the country is promoting the use of biofuel, an ideal alternative to fossil fuel, according to the National Energy Administration.
According to a plan jointly released by the National Development and Reform Commission, the National Energy Administration, and the Ministry of Finance, the country will implement nation-wide use of ethanol-added gasoline by 2020, while targeting the large-scale production of cellulose ethanol and advanced biofuel technologies by 2025.
It is reported that total production, which includes ethanol, biodiesel and hydrotreated vegetable oil (HVO), grew at its fastest pace in the past five years in 2018, fueled by a surge in Brazil’s ethanol output.
But now China is set to lead growth, adding roughly 9.5 billion liters capacity to the market, “China is set to have the largest biofuel production growth of any country. The rollout of 10% ethanol blending in a growing number of provinces and increasing investments in production capacity drive a tripling of ethanol production by 2024,” reported the IEA.
Brazil’s total biofuel incremental capacity ranks second at roughly 8 billion liters and the U.S. ranks third at around 6 billion liters. The IEA noted, however, the U.S. and Brazil will still provide two-thirds of total biofuel production in 2024.
Likewise, Asia accounts for half of the estimated growth, as its ambitious biofuel mandates aimed at reinforcing energy security boost demand for agricultural commodities and improve air quality.
The Chinese government, also said it aims to build an ethanol production base in the country’s northeast, the main corn-growing region, and seeking more technological breakthroughs to lower the price and increase the production efficiency of fuel ethanol. And, it is forecast that 10% of renewable energy in transport by 2024, most of which is in China.