Bio-fuels & China

April 13, 2026

China – Bio-fuels

China implemented mandates and granted subsidies to produce bio-fuels have resulted in the country becoming the world’s fourth largest ethanol producer and consumer.

China produces 3 billion liters of ethanol and about 500 million liters of biodiesel per year.

China has numerous Large and Small Scale companies as well universities (merger or individual) are investing in research on bio-fuels.

Countries Producing the most Bio-Diesel

China restricted construction of new ethanol facilities which produces from grains due to shortage of food feedstock. Advanced cellulosic ethanol production subsidies are RMB 600 per ton ($0.07 per liter).

Read Also: Bio-fuels Overview

Timeline – China

2001: China established Four pilot plants developing first-generation ethanol industry to produce bio-fuels directly from food crops, three on corn (maize) and one on wheat.

2002: Chinese government started to mandate the use of bio-ethanol  gasoline in five cities in the Heilongjiang and Hernan province.

2003: CNPC, through its subsidiary Jilin Fuel Ethanol Ltd. Co, built China's first ethanol plant using corn as a feedstock and now runs several other ethanol projects.

2004: The Chinese government introduced the compulsory use of a 10% blend of bio-ethanol to gasoline (E10) in all areas of  Heilongjiang, Jilin, Liaoning, Hernan, and Anhui.

2005: Bio-energy use has reached more than 20 million households in the rural areas, with methane gas as the main bio-fuel.

2006: Crop prices rose, as till then crop was used for production of ethanol, concern has been expressed and in result China had clamped down on the use of corn and other edible grains for producing bio-fuels.

2007: COFCO set up its ethanol plant in Guangxi province to produce 200,000 tonnes of ethanol per annum using only cassava as its feedstock which is China’s first commercialized non-grain-based ethanol project.

2008: The development of biodiesel speeded up. The principal biodiesel producers are Fujian Zuoyue New Energy Co. Ltd, Sichuan Gusan Biodiesel Co. Ltd, and Hainan Zhenghe Biodiesel Co. Ltd, etc. Production of ethanol in 2008 is 9,361 million liters.

2009: Renewable Energy Law revised. Setting up the target for bio-fuels production and consumption. Production of ethanol in 2009 is 10,127 million liters.

2010: Increase non-grain fuel ethanol by 2 million MT. Biodiesel annual use to reach 200,000 MT by 2010 Confirming renewable energy share target in total energy consumption -10% by 2010. Production of ethanol in 2010 is 11,207 million liters.

2011: Chinese Government initiated 12th Renewable Energy five year plan. In 2011, the four grain plants produced a total of 1.66 million metric tons, among which corn 82%, and wheat was 18%; production from cassava was about 120,000 MT. Production of ethanol in 2011 is 12,477 million liters.

2012: China’s fuel ethanol annual production is forecast to reach 1.92 million metric tons in 2012. Production of ethanol in 2012 is 14,266 million liters.

2013: Production of ethanol in 2013 is 15,605 million liters. Imports of biodiesel and mixtures (HTS 3826) surged in 2013 by 2.5 million liters.

2014: China currently has 7 plants licensed for fuel ethanol production (using corn, wheat, cassava, sweet sorghum and corn cobs).  Corn accounted for 76 percent of fuel ethanol production in 2014, and another 14 percent came from wheat. Production of ethanol in 2014 is 16,763 million liters.

2015: Currently, there are 54 biodiesel plants, but more than half of the producers have ceased production. Production of ethanol in 2014 is 17,646 million liters.

2016: China aims to expand ethanol production through newly implemented processor subsidies and import restrictions. Production of ethanol in 2016 is 18,982 million liters.

2017: Production of ethanol in 2017 forecasts is 20,432 million liters. The China Association of Automobile Manufacturers forecasts that overall 2017 vehicle sales will grow to 29.7 million vehicles. Policy changes have reversed the fortune of China’s ethanol producers, driving production higher.

Leading university in China – by researching in Bio-fuels

Other Institutions Researching in Bio-fuel

Leading company in China – by researching in Bio-fuels

Other Companies Developing and Researching Bio-fuel

About Effectual Services

Effectual Services is an award-winning Intellectual Property (IP) management advisory & consulting firm offering IP intelligence to Fortune 500 companies, law firms, research institutes and universities, and venture capital firms/PE firms, globally. Through research & intelligence we help our clients in taking critical business decisions backed with credible data sources, which in turn helps them achieve their organisational goals, foster innovation and achieve milestones within timelines while optimising costs.

We are one of the largest IP & business intelligence providers, globally serving clients for over a decade now. Our multidisciplinary teams of subject matter experts have deep knowledge of best practices across industries, are adept with benchmarking quality standards and use a combination of human and machine intellect to deliver quality projects. Having a global footprint in over 5 countries helps us to bridge boundaries and work seamlessly across multiple time zones, thus living to the core of our philosophy - Innovation is global, so are we !!!

Follow Us: LinkedIn, Twitter

US, UK, IN
Get in Touch