Petrochemical
Biofuel Oil Production Project of Changchun City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Biofuel oil, also known as “regenerated fuel”, is a fatty acid methyl ester produced by ester exchange reaction between vegetable oil and methanol. As a clean biofuel, it not only has a high calorific value, but also exhibits excellent environmental performance. The main use of biofuel oil is to replace traditional fossil fuels such as gasoline and diesel. Thanks to its renewable and environmentally friendly properties, biofuel oil has broad application prospects in the energy field.
The construction of this project will actively introduce leading domestic and foreign production equipment to create a modern workshop with complete facilities. We aim to promote the rapid, healthy, and sustainable development of China’s biofuel oil industry in the new era by adopting advanced biofuel oil processing technology and equipment. This move is conducive to transforming China’s resource advantages into economic advantages, further promoting the popularization of green energy, and contributing our strength to achieving the goal of sustainable development.
1.1.2 Market prospect
(1) Current situation of biofuel oil market
The total production of biofuels worldwide continues to grow. By 2022, the total global production of biofuels had jumped to 762 million barrels (in oil equivalent terms), with an increase of 139 million barrels from the previous year and a year-on-year increase of over 17%. In 2023, global biofuel production increased by over 8%, with the United States and Brazil ranking first and second in growth, respectively.
The upstream of the biofuel industry chain mainly involves the collection and pretreatment of raw materials. The sources of raw materials are diverse, including crop waste (such as straw and wheat straw), forestry waste (such as sawdust and bark), urban household waste, and livestock and poultry manure. These raw materials should undergo pre-treatment processes such as collection, classification, crushing, and drying for subsequent biofuel production. The midstream is the core of the entire industry chain, mainly involving the conversion of pre-treated raw materials into intermediate products through biomass conversion technology, and further processing the intermediate products to form the final biofuel products. These biofuel products include biodiesel, bioethanol, biogas, etc. In the production process, advanced biomass conversion technologies such as fermentation, pyrolysis, gasification, etc. should be used to improve the yield and quality of biofuels. The downstream of the industrial chain is mainly applied in multiple fields such as thermal power generation, industrial production, transportation, and residential life. Biodiesel can be used as an alternative fuel for diesel engines, bioethanol can be used as an alternative fuel for gasoline, and biogas can be used for heating, power generation, and other fields. With the continuous advancement of technology and the sustained support of policies, the application fields of biofuels will continue to expand.
With the increasing emphasis on renewable energy by the country, the biofuel industry has entered a period of rapid development. The Ministry of Science and Technology has launched a biofuel oil technology development project, and China has also issued a series of policy supports to promote the increase of biofuel production enterprises and the expansion of production scale. In recent years, the biofuel industry has continued to maintain stable growth, with continuous technological innovation, continuous improvement of the industrial chain, and increasing market demand. In the future, with the increasing awareness of environmental protection and the adjustment of energy structure, biofuels will play a more important role in the energy field. Meanwhile, the biofuel industry will also face more challenges and opportunities, requiring enterprises to constantly innovate and upgrade to adapt to changes in market demand.
(2) Prospects of the biofuel oil market
The development of biofuels cannot be separated from policy support and promotion. Many governments and international organizations have implemented relevant policies to encourage the production and use of biofuels. As one of the world’s largest biofuel markets, the United States sets mandatory blending targets for various types of biofuels every year, and cooperates with tax incentives and punitive measures to ensure the widespread application of biofuels in the transportation sector. As one of the most proactive regions in global biofuel policies, the EU has mandated that by 2030, member states will achieve a minimum of 29% share of renewable energy in final energy consumption for transportation or 14.5% reduction in greenhouse gas emissions. EU has also established a biofuel alliance database and sustainability standards for biofuels. Indonesia has increased the proportion of biodiesel added in the transportation sector to 30% and provided significant subsidies, making it one of the countries with the highest proportion of biodiesel added globally.
With the requirements of global carbon peak and carbon neutrality goals, ICAO and IMO will continue to promote the green and low-carbon development of aviation and maritime transportation. After they propose the net zero emission target, more specific policy measures and standard requirements will be implemented, which will provide more practical and feasible support for the development of biofuels. Governments around the world will continue to support the development of related industries such as biofuels, and encourage the production and use of various low-carbon clean energy sources, including biofuels, through more comprehensive legislation, low-carbon market mechanisms, fiscal and tax policies, etc.
The market concentration of China’s biofuel industry is relatively high. By 2023, the CR3 in the bioethanol industry exceeded 60%; CR10 exceeded 90%; The biodiesel industry had CR3 exceeded 30% and CR10 exceeded 70%. Overall, leading companies in the biofuel industry have significant advantages.
Due to the fact that biofuels in China have not yet entered the state-owned refined oil system and have not been widely used in the field of automotive transportation fuel oil, there is still great development potential. If biofuels can be effectively promoted in China, it is predicted that the consumption of biodiesel in China will exceed 1.5 billion liters by 2029, and the consumption of bioethanol will approach 7 billion liters.
With the continuous advancement of technology and sustained policy support, the application fields of biofuels will continue to expand. Meanwhile, biomass fuel, as a renewable energy source, has zero emissions and low-carbon characteristics, which is in line with the global trend of energy transformation and carbon reduction, and therefore has broad development prospects.
Overall, as a renewable energy source, biofuel oil has significant environmental and socio-economic benefits. However, its commercial application still faces technical challenges and cost issues. In the future, with the advancement of technology and large-scale production, the cost of biofuel oil is expected to decrease, and its competitiveness in the energy market will also be enhanced. Meanwhile, government policy support and market incentives are also key factors driving the development of the biofuel oil industry.
1.1.3 Technical analysis
The biofuel oil technology mainly includes the following types:
Biofuel ethanol: Biofuel ethanol is a liquid fuel produced from biomass through fermentation, purification, or biochemical synthesis. According to the different raw materials, biofuel ethanol can be divided into 1G, 1.5G, 2G, and 3G. The 1G biofuel ethanol mainly used grain crops such as corn and wheat; The 2G uses agricultural and forestry waste; The 3G uses green plants such as algae.
Biodiesel: Biodiesel is a renewable energy source produced from waste oils and other biomass materials. For example, Shagang Logistics Transport Company successfully completed the first batch of B24 biofuel refueling operation in Singapore, which is made by blending biodiesel and low sulfur fuel oil.
Sustainable aviation fuel: Sustainable aviation fuel (such as bio aviation coal) is produced through hydrogenation technology using animal and vegetable fats as raw materials. This fuel has been successfully applied to domestically produced large aircraft C919 and ARJ21, demonstrating its excellent flight performance.
Bionatural gas: Bionatural gas is natural gas produced from organic waste through microbial fermentation or thermochemical conversion. It can be used as urban gas or vehicle fuel, with environmentally friendly and sustainable characteristics.
Biomass liquid fuel: This type of fuel includes ethanol, biodiesel, etc., which are mainly prepared through physical conversion (such as solid formed fuel), chemical conversion (such as gasification, liquefaction), and biological conversion (such as fermentation).
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
Guiding Opinions on Vigorously Implementing the Renewable Energy Substitution Action: This Guidelines was jointly issued by six ministries including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban Rural Development, the Ministry of Transport, the National Energy Administration, and the National Data Bureau. It emphasizes the development of green fuels such as biogas, biodiesel, and bio aviation coal according to local conditions, actively and orderly developing hydrogen production from renewable energy, promoting the application of sustainable aviation fuels, and supporting pilot operations of relevant fuels in the fields of ships and aviation in areas with conditions.
Notice on Organizing Pilot Demonstrations for the Promotion and Application of Biodiesel: The National Energy Administration has issued this notice to expand the application scenarios of biodiesel in China, explore the establishment of replicable and promotable policy systems and development paths, gradually form demonstration effects and scale effects, and accumulate experience for expanding the promotion and application of green liquid fuels such as biodiesel.
(2) Industrial advantages
The Development Strategy Plan of Changchun Kuancheng Economic Development Zone (2020-2035) and the 14th Five-Year Plan Outline of Changchun Kuancheng Economic Development Zone have determined to build a new development pattern with rail transit equipment and automotive parts as the main industries, and food processing, resource recycling, new energy, new materials, biomedicine, urban agriculture, and automotive aftermarket services as the characteristic industries, creating a distinctive identity for Changchun Kuancheng Economic Development Zone.
(3) Location advantages
Kuancheng District has a superior geographical location and is the core hinterland of the northern new city of Changchun. It is located at the intersection of the Harbin Dalian first level axis and the main axis of the Changjitu pilot area. The Beijing-Harbin Railway divides Kuancheng into two parts: Tienan and Tiebei. The Tienan region has gathered a group of large commercial and wholesale enterprises, making it one of the busiest business districts in Changchun; The Tiebei region is an old industrial base in Changchun, with strong industrial foundation and advantages. Furthermore, Kuancheng District is adjacent to large state-owned enterprises such as Changchun New Area to the east and Rail Transit Bus Co., Ltd. to the west, and is located in the core area of the western industrial corridor in the city’s planning and layout. It has unique advantages in future industrial development.
The proximity between Kuancheng District and Changchun Longjia International Airport provides convenient transportation conditions for the project. As an important aviation hub in Northeast China, Longjia Airport not only connects major cities in China, but also opens multiple international routes, providing great convenience for the external exchanges of Kuancheng District and even Changchun City. Furthermore, the road transportation network in Kuancheng District is well-developed, with multiple highways and national and provincial roads running through it, which reduces the transportation cost of biofuel oil products and enhances market competitiveness. This advantage in transportation distance is of great significance for the long-term development of the project, and will effectively promote the promotion and application of biofuel oil products.
(4) Talent advantages
Changchun is a city located in a university, with 15 national key laboratories, 83 independent research institutions in Changchun, including the Institute of Optical and Mechanical Physics of the Chinese Academy of Sciences, the Institute of Applied Chemistry of the Chinese Academy of Sciences, and the Institute of Geography of the Chinese Academy of Sciences, and 49 colleges and universities, including Jilin University and Northeast Normal University. As the core area of northern Changchun, the development zone actively builds a platform for industry university research cooperation, attracts a large number of high-quality talents, and establishes a technology innovation system with enterprises as the main body, market orientation, and the combination of industry university research and application. 42 universities and talents in Changchun have gathered strongly, gathering wisdom and strength for urban development. Furthermore, the Kuancheng District Government has signed talent cooperation framework agreements with Jilin Vocational & Institute of Technology, Changchun College of Electronic Technology, and Jilin University of Architecture and Technology, providing talent support for enterprise development.
1.2 Contents and scale of project construction
The planned land area for the project is about 20,000 ㎡. Main office buildings, oil production workshops, oil storage workshops, and other ancillary facilities.
1.3 Total investment of the project and capital raising
The total investment of the project is 100 million yuan, including the construction investment of 70 million yuan.
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales revenue will be 61.72 million yuan, its profit will be 18.15 million yuan, its investment payback period will be 6.5 years (after the tax, including the construction period of 1 year) and its return on investment will be 18.5%.
Note: “10 thousand yuan” in the table is in RMB
1.4.2 Social evaluation
Creating employment opportunities: The production, transportation, and sales of biofuel oil require a significant number of human resources to participate, thereby creating a large number of job opportunities, increasing employment rates, and improving socio-economic conditions.
Promoting rural economic development: The production of biofuel oil mainly uses agricultural waste such as crop residues, providing a new economic development path for rural areas. Farmers can convert them into economic income, improve their income level, and promote the development of rural economy by utilizing these wastes reasonably.
Reducing energy poverty: For some remote or impoverished areas that do not have access to traditional energy supply, biofuel oil has the advantages of easy access to materials and low cost, which can alleviate energy poverty and improve the energy supply situation of local residents.
Promoting agricultural circular economy: The production of biofuel oil comes from a wide range of raw materials, including agricultural waste, industrial waste, etc., which helps to solve the problem of waste disposal and promote the development of agricultural circular economy.
1.5 Cooperative way
Sole proprietorship, joint venture and cooperation.
1.6 What to be invested by the foreign party
Funds, other ways can be discussed in person.
1.7 Construction site of the project
Changchun Kuancheng Economic Development Zone
1.8 Progress of the project
The project proposal has been prepared
2. Introduction to the Partner
2.1 Basic information of unit
Name: Changchun Kuancheng Economic Development Zone Management Committee
Address: No. 7388 Kaixuan Road, North of Kuancheng District, Changchun City, Jilin Province
2.2 Overview of unit
Changchun Kuancheng Economic Development Zone (formerly known as Changchun Changjiang Road Economic Development Zone) was established in 1998 with the approval of the Changchun Municipal Party Committee and Government. It was promoted to a provincial-level development zone in 2001, covering an area of 115.16 square kilometers. The zone has a population of about 220,000, and over 10,000 market entities of various types. And its total economic output accounts for more than 60% of that in Kuancheng District. After more than 20 years of development, its comprehensive development level has risen to the forefront of provincial-level development zones, gradually developing from a single commercial economic development zone to a comprehensive development zone dominated by rail passenger cars, industrial manufacturing, modern logistics, and commercial service industries, and with co-existence of multiple industries.
Changchun Kuancheng Economic Development Zone is located in the northern part of Changchun city, facing the North Lake Science and Technology Development Zone of Changchun New Area across the river to the east, adjacent to the city center to the south, adjacent to the Green Garden District to the west, and connected to Changchun Nongan County to the north. It is about 13 km away from the city center and about 30 km away from Changchun Longjia International Airport. It is located at the core node of the priority development of Harbin Dalian first level axis in the national northeast revitalization plan and is a key area for Kuancheng District to build a modern core area in the north. The main road network system with “Three Horizontals and Four Verticals” has been built, where the Beijing-Harbin Railway, Changchun-Baicheng Railway, Beijing-Harbin Expressway, Hunchun-Ulanhot Expressway, Ring Expressway, 102 National Highway, and 302 National Highway converge. The infrastructure in the area is fully equipped, including water, electricity, gas, heat, communication and other functional supporting facilities. Public service functions such as schools, hospitals, and parks are also complete. There are superior ecological resources such as Yitong River, Jingshui River, and Chuanhu Lake, etc.
The “14th Five-Year Plan” development blueprint of Changchun Kuancheng Economic Development Zone has planned a spatial layout of “one city, two belts, four cores, and five zones”, adopting a development model of “one zone, multiple parks”. Focusing on the goal of building a demonstration zone for integrated development of industry and city in northern Changchun, we will focus on building a world-class rail equipment manufacturing and repair center and an ecological sightseeing and leisure center in the suburbs of the city. It has determined the development pattern with rail transit as the leading industry, supplemented by pan-transportation industry and professional logistics, and with specialty food processing, resource recycling, new materials, clean energy, biomedicine, urban agriculture, and automobile after-market services as characteristic industries.
In addition to provincial and municipal preferential policies, the projects located in Changchun Kuancheng Economic Development Zone can also enjoy policy support from Kuancheng District. Provide investment subsidies for industrial projects based on industry categories and available funds; After the project reaches its production capacity, financial support will be provided based on the output value and tax situation; For major projects, special policies will be given on a case-by-case basis.
2.3 Contact method
Contact person: An Peiwen
Tel: +86-431-89991958+86-13578763399
E-mail: 184479431@qq.com
Contact method of the city (prefecture) where the project is located:
Contact unit: Changchun Cooperation and Exchange Office
Contact person: Zhang Junjie
Tel: +86-15704317930
Fax: +86-431-82700590
E-mail: xmc82763933@163.com