China is planning to use ethanol to help draw-down the nation’s corn stocks, improve corn demand, and clean up smog in cities. China plans to roll out the use of ethanol in gasoline nationally by 2020, pushing for an E10, or 10 percent ethanol blend, across what is the world’s largest car market. China has not formally announced the plan, but the intentions are boosting confidence in China’s corn industry. The news comes after the government said late last year it would aim to double ethanol output by 2020 to decrease the amount of corn in storage.
China has built up state corn reserves estimated at 200 million metric tons, equivalent to a year of demand. According to sources in China, the government aims to build an ethanol production base in the country’s northeast, the main corn growing region.
Source: NAFB News Service