China: Biofuels Annual

  |   Attaché Report (GAIN)   |   CH2022-0089

China’s biofuels policies continue to wane as a priority for the People’s Republic of China (PRC) and investment in the sector has declined. Post estimates China’s 2022 ethanol blend rate at 1.8 percent, down from 2021 and well below the peak blend rate of 2.8 percent eleven years ago. Fuel ethanol consumption in 2022 is estimated at 3.8 billion liters, down 164 million liters from 2021 due to regional Covid-19 lockdowns resulting in less gasoline consumption in existing E10 pilot areas. Ethanol production in 2022 is forecast to increase to 3.8 billion liters, up 383 million liters from the previous year due to a period of profitability early in the year and limited imports. China’s 2022 biodiesel production is forecast at 2.4 billion liters, up by more than 32 percent from 2021 due to a surge in export demand, well above previous records almost entirely to the EU. Domestic biodiesel blending rates remain limited with no mandates beyond one municipal B5 program.

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