Despite its ambitious plan to produce bio-energy from crops, the
government will not allow food shortages to occur, nor will there
be major fluctuations in the prices of agricultural products, an
expert on energy research said on Friday.
"The government gives top priority to food security," Zhou
Fengqi, former director-general of the energy research institute
under the National Development and Reform Committee, the top
economic policymaking agency, said.
"Compared with the world's leading bio-fuel producers, like the
United States, China's efforts will be small-scale, and so too will
be the demand for raw materials."
Last year, China used 2.7 million tons of corn - less than 2
percent of the total yield - to produce 850,000 tons of fuel
ethanol. In comparison, the US used 55 million tons of corn.
Zhou was speaking in response to a report published on Wednesday
by the Organization for Economic Cooperation and Development (OECD)
and the United Nations' Food and Agriculture Organization
(FAO).
Agricultural Outlook 2007-16 said increased demand for bio-fuel
was causing fundamental changes to agricultural markets that could
drive up world prices for farm products.
The report estimated China's ethanol output will rise to 3.8
billion liters a year by 2016, up 2 billion liters a year on
current levels.
"The estimated doubling of production is possible, given the
country's long and medium-term plans for renewable energy
development," Zhou said.
Under the plan, the country will increase its ethanol production
from 1 million tons now to 2 million tons by 2010, and by 10
million tons (equivalent to 13 billion liters) by 2020, higher than
the OOCE-FAO's estimate. "But staple crops such as corn will not be
the main raw materials," Zhou said.
(China Daily July 7, 2007)