4.4 Peoplefs Republic of China

4.4.1 Henan Tianguan Enterprise Group Co., Ltd (including the discussion with farmers)

(1) Place
No. 16 Eastern Jian She Road Nanyang City Henan, Post code: 473000
http://www.tianguan.com.cn

(2) Process (system) flow
They buy feedstock from collecting company in the group or cooperation like JA, produce ethanol, and sell to petroleum company gSinopetroh.

(3) Feedstock, ethanol utilization, scale, and feedstock heating value. 
Main feedstock is wheat, and sweet potato, corn and cassava are also used.
Produced ethanol is used for fuel as E10.
This company has 3 factories, which produce ethanol of 500,000 t/year.

(4) Amount of product and its heating value
500,000 ton of ethanol is produced a year, and around 3.3 ton of wheat or 3 ton of cassava is used for 1 ton of ethanol production.  Therefore, around 1,500,000 ton of feedstock is needed.

(5) Mass balance and energy balance.
  See 4.3.2 (factory).

(6) Economical balance, initial cost, and operating cost
Overall economic balance is a follows,
   Feedstock, 4,500-5,000 RMB/t-EtOH (1,500 RMB/ton-feedstock)
   Production cost, 5,500 RMB/t-EtOH (around 4.5 RMB/L)
   Subsidy, 1,300 RMB/t-EtOH from Government
   Selling price, 4,600 RMB/t-EtOH)
   cf., gasoline price; 5 RMB/L
Government controls that the ethanol price is 0.911 times of gasoline price.
The detail of initial cost and operation cost, see 4.4.2 (factory).

 (7) Number of persons needed for operation
3000 workers work at 3 factories.

(8) The reason of introducing the plant, problems solved and unsolved
Fuel ethanol introducing results the increasing the production of wheat, and then the increasing the farmersf income (around double).  National energy issue is also a reason.

(9) Participation of farmers, municipality, or co-operatives, and support from university, institutes, or NGO
A part of farmers participate directly through cooperation like JA (supplying feedstock).  A new project named BEST is conducted under the 6th framework China-EU.

(10) Means to make the process economically feasible, key points for success, and selection of main body for the plant operation
Subsidy from government is most important.  Pls., tax is also free.  The subsidy enables the purchase of feedstock as same price as market. 

(11) Effect on farmerfs income and employment in the district
During the discussion, the followings pointed from farmers,

E    
For the participated farmers, the income increased double due to the production is double.  They expanded the cultivated land from surplus land and improved the productivity.  However, the agriculture land has a limited, and at this moment around all of the agriculture land is already used. 
E    
Before the introduction of ethanol production, low income drained farmers away to city.  After, the increasing of income stopped the draining.
However, the followings should be considered,

E    
Only 1.5 Mton of feedstock is used for the ethanol production among 40 million t of agriculture production in the provience (only 3-4%).  The value is 0.8% in all of the country. 
E    
The market price of corn was also double due to the increasing the international market price and increasing its demand not only for ethanol production but also for chemicals. 

(12) Framework for the introduction and development of human resources
It is the governmentfs policy.
The project started at Dec. 2001 at Nanyang.  Demonstration stage (1st stage) was conducted during Aug. 2002 to July 2003.  Commercial stage (2nd stage) stared at Aug. 2003, and 520 gas stations and 50,000 cars are introduced E10. 

(13) Situation of agriculture in the district (utilization of land, sustainability of the agriculture)
Here, double cropping is usually, wheat is harvested at spring and corn is grown at summer. 
Chemical fertilizer of 150 kg is used for 1 ton corn production, and manure is also used.  The production cost is around 300 RMB for 1 ton corn production. 
One farmer uses his land of average 1.5MU, and from 1MU 0.5 ton of corn and 0.5 ton wheat are obtained.  Therefore, average income is calculated around 2,250 RMB.  cf. the income in the factory is around 15,000 RMB.  So, farmerfs income is thought not enough.  Cf. 1MU (
) is 666 m2.

(14) Possibility of local recycling agriculture with bio-ethanol
No effect, because feedstock for ethanol production is supplied from market. 
DDSG is used as feed, while wastewater is treated in the factory. 

(15) Possibility of bio-ethanol supply and energy utilization in the district
Surplus land or surplus product is needed. 

(16) Miscellaneous

(17) Contact person, homepage, and supporting body
Mr. Du Feng Guang, General Engineer, is a contact person.

(18) Handouts
  None.

(19) Photos
Photos taken during the visit are shown from the next page.

Fig. 4.4.1-1  photo of the company.

Fig. 4.4.1-2  Meeting (from left, Ms. Betty, Mr. Guang, 2 farmers)

Fig. 4.4.1-3  Gas stand of gSinopech

Fig. 4.4.1-4  E10 car


4.4.2 Ethanol Plant of TianGuang Group, Nanyang

(1) Place
Nanyang, Henan Province

(2) Process flow
Wheat is ground, and protein is removed.  Then it is liquefied with enzyme, saccharified with another enzyme, fermented, dehydrated to 99.5%, denatured, and shipped to the blending center, which is located 5 km away from the city.  The protein and the fermentation sludge are also sold. 

(3) Feedstock, product utilization, scale, and feedstock heating value. 
Wheat is the feedstock.  The product ethanol is used for additive to gasoline.  The input is 1 Tg (1,000,000 t) of wheat per year.  The heating value of feedstock should be about 14 MJ/kg since it is wheat.

(4) Amount of product ethanol and its heating value
The yield is 30 Gg (30,000 t)/year.  The heating value of ethanol is 30 MJ/kg. 

(5) Mass balance and energy balance.
To produce 1 Mg (=1 t) of ethanol, 3.3 Mg of wheat is needed.  Byproducts are 0.5 Mg of DDGS (distillerfs dried grain of solubles, fermentation sludge) and 0.3 Mg of protein.  One ton of carbon dioxide should be generated from the fermentation process.  The other 0.5 Mg should be included in the waste water, which is treated by methane fermentation and activated sludge treatment.
To produce 1 t of ethanol, or 30 GJ of ethanol, 0.16 Mg of coal, or 4.5 GJ of coal (assuming 28 MJ/kg-coal) is needed.  No other energy is added.  Input wheat is 3.3 Mg, or 46 GJ.  The energy efficiency (output energy of ethanol divided by input energy of coal and wheat) is 0.60.

(6) Economical balance, initial cost, and operation cost
The initial cost is 1.3 billion RMB.  The ethanol price is 4500 RMB/Mg.  Government supports 1300 RMB/Mg.  Assuming 10 years for depletion period, operation cost should be 44 million RMB per year.

(7) Number of persons needed for operation
The number of employee is 600.  Assuming 3-shift, persons needed for operation is 150.

(8) The reason of introducing the plant, problems solved and unsolved
The Tianguang Group is the first to produce ethanol in China, and the first to get license for fuel-ethanol production. 

(9) Participation of farmers, municipality, or co-operatives, and support from university, institutes, or NGO
The farmers bring their product. 

(10) Means to make the process economically feasible, key points for success, and selection of main body for the plant operation
The support from the government is the key to the economical feasibility.  Otherwise, the price does not match that of gasoline. 

(11) Effect on farmerfs income and employment in the district
  See 4.3.1. 

(12) Framework for the introduction and development of human resources
The company built the plant by itself. 

(13) Situation of agriculture in the district (utilization of land, sustainability of the agriculture)
  See 4.3.1.

(14) Possibility of local recycling agriculture
Nothing is recycled for agriculture from the plant. 

(15) Possibility of electricity supply and energy utilization in the district
The plant is consuming energy to produce ethanol.  The ethanol is blended to gasoline, and used in the district. 

(16) Miscellaneous
The plant is composed of 5 units, which are wheat pretreatment, protein production, ethanol fermentation, DDGS production, and utilities.

(17) Contact person, homepage, and supporting body
Mr. Zhang Kefan is recommended. 

(18) Photoes
Photoes taken during the visit are shown below.  The company did not allow us to take photo inside the factory.  Thus, only one photo of the factory from outside was available

Fig. 4.4.2-1  Outlook of the ethanol plant.


4.4.3 Institute of Energy and Environmental Protection (IEEP), Chinese Academy of Agricultural Engineering (CAAE)

(1) Place
No. 41, Maizidian Street, Chaoyang District, Beijing 100026, China

(2) Process flow
   Unknown.

(3) Feedstock, product utilization, scale, and feedstock heating value
At the end of the year 2006, four fuel ethanol plants have been officially permitted in operation from the government (Although this is in conflict with the result shown in 4.3.1, only four plants might be paid subsidies for fuel ethanol production from the government.  There are more than 600 ethanol plants in China.).  Feedstock of three permitted plants is corn, and that of the other is wheat.  Because of competition between food and fuel, the government thinks changeover of fuel ethanol feedstock from corn and wheat to sweet sorghum, sweet potato, and cassava.  Moreover, lignocellulose is expected to be utilized for fuel ethanol production in the future.  Now a pilot plant which can produce 3,000-4,000 t/y of ethanol from lignocellulose is in operation in Nanyang, its technology is from China National Cereals, Oils and Foodstuffs Corporation (COFCO).

(4) Amount of product ethanol and its heating value
1,200,000 t/y of ethanol was produced in 2006 in China.  Two-thirds of the total feedstock was wheat, and the others were corn, cassava, sweet potato, and sweet sorghum (their amounts were almost same).

(5) Mass balance and energy balance
LCA of bioethanol production has not been carried out yet.

(6) Economical balance, initial cost, and operation cost
Economical balance of an ethanol production plant now breaks even, and this situation is supported by subsidies from the government.

(7) Number of persons needed for operation
   Unknown.

(8) The reason of introducing the plant, problems solved and unsolved
Background of the introducing ethanol production in China was the surplus of food several years ago, but the situation has been changed and now there is not so much amount of surplus food.

(9) Participation of farmers, municipality, or co-operatives, and support from university, institutes, or NGO
   Unknown.

(10) Means to make the process economically feasible, key points for success, and selection of main body for the plant operation
   See item (6).

(11) Effect on farmerfs income and employment in the district
Although ethanol production in China has increased farmersf income, the increase is not enough for them to buy electricity.

(12) Framework for the introduction and development of human resources
   Unknown.

(13) Situation of agriculture in the district (utilization of land, sustainability of the agriculture)
  
This is discussed in 5.3.

(14) Possibility of local recycling agriculture
Energy utilization of lignocellulose (agricultural residues) is one of the possibilities from the viewpoint of the increase in farmer
sf income.  This is discussed in detail in 5.3.

(15) Possibility of electricity supply and energy utilization in the district
   See item (11), and this is discussed in detail in 5.3.

(16) Miscellaneous
i) The Centre of Energy and Environmental Protection (CEEP)
The Centre of Energy and Environmental Protection was established in 1995, based on the Institute of Energy and Environmental Protection, Chinese Academy of Agricultural Engineering.  There are 30 technical professionals in CEEP, including 3 professors, 8 Senior engineers, 10 engineers, and 2 German CIM-experts.
   CEEP engaged in:

·          
Macro-policy study on rural energy and rural ecological environmental protection;
·          
Instruct and administrate key projects of rural energy and ruralenvironmental protection;
·          
Research and promote the technologies of agricultural waste treatment and resource-oriented utilization;
·          
Design and construct for the projects of agricultural waste treatment and resource-oriented utilization;
·          
International cooperation, information exchanging and staff training;
·          
Administration of Instructing Station for Rural Energy Occupational Skill Testing.

ii) The EU-China Energy Environment Programme (EEP)
The EU-China Energy Environment Programme (EEP) is established to correspond to the political intent of the Chinese Government and the European Commission, to further strengthen the EU-China co-operation in the area of energy.  The overall purpose of the Programme is to promote sustainable energy use by securing supply at improved economic, social and environmental conditions, thus contributing to improved environmental quality and health conditions in China.
Four priorities have been identified in agreement with the Energy Bureau as the EEP's renewable energy component focal areas, and the information can be gathered from the following address:

   http://www3.eep.org.cn/eepsubpages.php?d=143522141105&p=410615141205

iii) Sino-German project gEnvironmental strategy for intensive agriculture in northern Chinah
This project is aimed at developing a water-saving, fertilizer-saving, insecticide-saving technology for intensive vegetable planting, by referring German relative experiences and advanced technologies on rural environmental protection, in order to solve the problems of water scarcity, abuse of fertilizer and insecticide, and agricultural non-point pollution caused by free discharge of animal waste, etc, improve the agricultural productsf quality, increase farmersf income, and realize the sustainable agriculture development.

(17) Contact person, homepage, and supporting body
Dr. Zhao Li Xin, Director General and Professor, Institute of Energy and Environmental Protection (IEEP), CAAE
Mr. Wang Fei, Director Assistant, Center for Energy and Environmental Protection (CEEP), Ministry of Agriculture (MOA).

   Homepage is now under construction.

(18) Photoes
Photos taken during the visit are shown from the next page.

Fig. 4.3.3-1.  Institute of Energy and Environmental Protection (IEEP), Chinese Academy of Agricultural Engineering (CAAE)

Fig. 4.3.3-2.  Institute of Energy and Environmental Protection (IEEP), Chinese Academy of Agricultural Engineering (CAAE) (2)


Fig. 4.3.3-3.  Discussion with Prof. XIn (left) and Mr. Fei (2nd from the left)

Fig. 4.3.3-4.  Discussion with Prof. Dehua Liu (3rd from the right) and Ms. Jing Zeng (4th from the right), Tsinghua University

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