As part of the agreement, COFCO and Sinopec will build a cellulosic ethanol demonstration plant which Novozymes will supply with enzymes. The new plant, which comes online in the third quarter of 2011, is expected to produce three million gallons of bioethanol made from corn stover a year.
The new plant will convert agricultural waste into biofuel in China, which has an adequate supply of biomass, and agricultural residues alone exceed 700 million metric tons annually.
A 2009 study by Novozymes and McKinsey showed that by converting agricultural residues into fuel ethanol, China can reduce its gasoline consumption by 31 million tons in 2020, thereby reducing its dependence on imported petroleum by 10% and abating 90 million tons of CO2 emissions.
By doing so this industry will create 6 million direct jobs, resulting in an around $4.7 billion – income increase annually.
The new project is in line with Chinese government’s bioenergy development target to meet the growing demand for vehicle fuels in China, which by 2010 will see number of cars on the road to increase from 130 million to 200 million.
Michael Christiansen, president of Novozymes, China: ”In 2009, we forged this partnership in China to develop biofuel from agricultural waste; today, we are one step closer to producing commercial quantities.
”With gasoline prices hovering around $4 per gallon in China, companies across the country are reaffirming their commitment to investing in development of clean, alternative fuel sources.”
