09-12-07

Beijing will provide financial support to biofuel producers, including farmers, if they are to be made from non-food crops such as agricultural waste, sorghum or cassava.
"We have worked out a policy to support making biofuel from non-food products because they are clean sources of energy and have limited negative impact on the environment," Zeng Xiaoan from the Finance Ministry was quoted as saying.

The deputy director of the ministry's department of economic development said farmers would receive yuan 2,700-3,000 ($ 365-$ 405) per hectare for growing forest products or non-food crops for biofuels, including fuel ethanol and biodiesel.
It will also help producers of such biofuels acquire bank loans and reward with 20-40 % of their total investment when their projects achieve industrial standards, Zeng said.

China's biodiesel output is likely to rise to 200,000 tons by 2010 and 2 mm tons by 2020.
China, a huge net importer of vegetable oils, faces a major challenge on biodiesel asit is currently made from oils such as palm oil, rapeseed and soy oil.

Source: www.gulfnews.com