Grainnet

NCGA's Tolman: China Bans Corn for Ethanol for New Plants

by Myke Feinman, BioFuels Journal Editor

As of now, any new ethanol plants built in China will have to use non-food feedstocks, according to National Corn Growers Association CEO Rick Tolman.

Tolman returned from a two-week trip to China, Japan and South Korea in early July, reporting that while he was there, the Chinese implemented a freeze on new corn ethanol plants.

"We were in China during the time they were implementing a freeze on new corn processing plants and specifically ethanol plants using food products," Tolman reported to BioFuels Journal on July 5.

"They are very concerned about food prices there," Tolman continued.

"They have high meat prices due to disease issues in their swine and poultry sectors. They want to keep corn prices moderate and supplies available for the livestock industry."

He said ethanol plants already in operation that have been approved will be allowed to move forward with production.

However, if not approved, they will be shut down, he said.

"New plants can only be built if they use non-food feedstocks," Tolman reported.

“It is my understanding that officials in China were checking upon plants under construction and currently operating that had gotten permits based on using non-food feedstocks,” Tolman said.

“If they were found to be using food feedstocks (corn, sugar, cassava, etc.) they would be shut down.

"The implication was that some plants may have filed permits indicating the use of non-food feedstocks and then went ahead and started operating with food feedstocks.”