Asia

Asian has seen a rapid expansion in its economy, which brings with it a rapid expansion in all types of technology that rely on energy.  For example, the number of vehicles on the road in China has grown from 75 million in 2005 to nearly 250 million in 2012. The number is expected to continue climbing to well over 700 million by 2035. A similar trend is seen in India and, to a lesser extent, other countries in Asia.

With the increase in vehicles there is a projected need for fuel as well. The high-end estimate for diesel fuel through 2030 is nearly 1.5 billion liters whereas the low-end estimate is around 300-400 million liters. At a moderate rate of continued growth, Asia will require 750 million liters of gasoline and diesel by 2030.

To address the growing need for energy, Asian countries (China specifically) have begun to implement aggressive biofuel programs. In fact, China is now the forth largest net producer of biofuel in the world if the EU is counted as a whole.

Feedstock

Sugarcane, Cassava, Wheat, and Corn are the primary feedstock used to produce biofuels in Asia. All of these are first generation feedstock. The relative distribution is:

1.       Sugarcane ~ 433 million metric tons (most efficient of first generation feedstock)

2.       Wheat ~ 165 million metric tons

3.       Corn ~ 133.5 million metric tons

4.       Cassava ~ 51 million metric tons

Asia has also made investment in advanced biofuel feedstock as follows:

1.       Oil Palm ~ 156 million metric tons

2.       Soybean ~ 24 million metric tons

3.       Rapeseed ~ 18 million metric tons

4.       Jatropha ~ preliminary test projects

By Country

 

This section breaks down biofuel production in Asia by county. The chart is modified from Biofuels Annual data (published by the USDA) collected in 2008 - 2012.

Country

Current Feedstock

Ethanol

(millions of liters)

Biodiesel

 (millions of liters)

Ethanol

Biodiesel

2008

2012

2008

2012

China

Corn, wheat, cassava

Waste vegetable oil

2,002

2,433

355

568

India

Molasses

Jatropha, pongamia

2,150

2,171

317

300

Indonesia

Molasses, cassava

Palm oil

212

300

753

1,300

Malaysia

None

Palm oil

70

N/A

443

178

Philippines

Sugarcane

Coconut oil

105

245

211

393

Thailand

Molasses, cassava

Palm oil, waste cooking oil

408

1,120

48

860

Vietnam

Molasses, cassava

Animal fat

164

N/A

0

N/A

TOTAL

5,111

6,269

1,772

3,599

Modified from: http://pdf.usaid.gov/pdf_docs/PNADS887.pdf

Government Policy

Both China and India have government incentive programs designed to increase investment in and development of biofuels. The slightly different structure of these governments means different policy strategies than in Western countries.

China

1.       Denatured Fuel Ethanol and Bioethanol Gasoline for Automobiles

a.        Stipulates an E10 standard, which is 10% ethanol in all gasoline

2.       Law Concerning Testing for the Use of Bioethanol Gasoline for Automobiles

a.        Launches the E10 standard in strategic areas

b.       Sets up regulation for production, transport, and sale of ethanol

c.        Funded four projects producgin ethanol from grain

3.       Law Concerning Testing for the Extensive Use of Ethanol Blended Gasoline for Automobiles

a.        Extends E10 standard to more locations in China

b.       Ramps up production and sales for large scale

c.        Establishes prices controls, setting gasoline and ethanol prices to the same

d.       Removes consumption tax on ethanol gasoline but keeps it for standard gasoline

4.       Regulations Concerning the Conduct of Testing Ethanol Blended Gasoline for Automobiles

a.        Monitors large scale deployment of ethanol fuel

b.       Tracks sales, production, and logistics of large-scale ethanol incorporation

c.        Begins testing of alternative feedstock

5.       Early testing on biodiesel with government support is also started (demand for diesel rising twice as fast as demand for gasoline)

India

India has an ideal climate for the growth of Jatropha and so most of the county's biofuel policy revolves around the production of Jatropha oil and subsequent refinement into biodiesel. India tends to take a local approach to government, with each state implementing its own policies regarding the plant. Given the diverse nature of India's landscape, this has some beneficial effects.

1.       State Bank of India

a.        1.3 billion rupees in low interest loans to farmers who will cultivate Jatropha

2.       State of Andhra Pradesh in Southeast India

a.        Formal agreement with Reliance Industries to grow 200 acres of Jatropha

3.       State of Chhattisgaqrh

a.        160 million Jatropha saplings planted

b.       135 million in government grants/loan for Jatropha nurseries

4.       State of Tamil Nadu

a.        Government assists farmers by guaranteeing contracts with companies that process Jatropha. If the crop fails, the government is responsible and not the farmer

5.       State of Rajasthan

a.        Government is purchasing seeds from farmers

6.       State of Maharashtra

a.        State Farming Corporation is working with Hindustan Petroleum Corporation and farmers to grow Jatropha on both public and private land

b.       Biodiesel from plants is used to fuel 100 public buses

7.       State of Ahmednagar

a.        Government works to connect farmers with biofuel companies

8.       Eastern India

a.        Joint venture between D! Oils in the UK and Williamson Magor group in India to produce biodiesel from Jatraopha planted on the state's marginal lands.

National Center for Agricultural Economics and Policy Research (NCAP) - This is India's national-level policy research institute. They review agricultural economics and help the national government set policy. Though India leaves a lot to state and local level law (similar to the United States), they also set national policy. Polices that have been established are:

1.       National Biofuel Mission

a.        Promotion of large-scale plantations

b.       Procurement of Jatropha Seeds

c.        Development of Methods for oil extraction

2.       Ethanol Blended Program

a.        Sets goal of 10% blending by 2017 and 20% blending after that

b.       Decreases state taxes, excise duties, and levies to make biofuel commercially viable

3.       Biodiesel Blended Program

a.        Sets goal of 10% blending by 2017 and 20% blending after that

b.       Sets differential tax rates for Jatropha and pongamia seeds based on their growth potential in each state

4.       Ministry of New and Renewable Energy

a.        Provides for automatic approval routes for biofuel technologies and projects

b.       Attempts to coordinate the disparate state regulation policies