China's fast-growing demand for oil brings huge opportunity to the alternative fuel market. Ethanol, eagerly sought after by the Chinese government, is dominated by conventional sugar fermentation technology but faces rising feedstock cost and dwindling subsidies due to agricultural pressure. Chinese cellulosic researchers are focusing on cost-effective systems in collaboration with indigenous industrial players, whereas China’s coal-to-ethanol is growing fast due to lighter feedstock pretreatment and deep industrial attention. Partnership with large Chinese producers is an essential factor to tap into China's advanced ethanol market, which will grow at 18% annually but fall short of mandates in China. With increasing technology commercialization, advanced ethanol is expected to take a significant market share and change the transportation fuel landscape in an urbanizing China.
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