The State Council executive meeting held on August 22, 2018 confirmed the overall layout of the biofuel ethanol industry. In order to develop green energy and digest excessive inventory of some grain varieties, the State Council executive meeting has determined the overall layout of the biofuel ethanol industry. The meeting proposed to adhere to controlling the total amount, limited fixed points, fair access, moderately utilize idle alcohol production capacity, moderately layout grain fuel ethanol production, accelerate the construction of cassava fuel ethanol projects, and carry out industrial demonstration of fuel ethanol production from straw and steel industry exhaust.

As a major agricultural province, Heilongjiang Province has been promoting policies to accelerate the construction of biofuel ethanol projects since the beginning of this year. At the beginning of the year, multiple projects were included in the province's "Top 100 Projects". It is understood that multiple fuel ethanol projects are about to be completed and put into operation by the end of the year, and the progress of some major projects is as follows:

The annual output of 300000 tons of fuel ethanol project in Hailun City is a new bioenergy engineering project, which is also a key poverty alleviation project in Hailun City. It is invested and constructed by SDIC Biotechnology Investment Co., Ltd. With Hailun's tide grain, aged corn and rotation corn as raw materials, the corn is crushed, liquefied, saccharified and fermented to produce fuel ethanol and protein feed. The scale of the biofuel ethanol plant is 300000 tons per year, and the feed unit produces 276300 tons of DDGS per year.

At the construction site of Helen's annual production of 300000 tons of fuel ethanol project, what we see is the roaring of machines, splashing steel flowers, shuttling engineering vehicles, and sweating builders, forming a construction picture of "fighting hard against schedule". The total investment of this project is 1.32 billion yuan. After completion, the production capacity of a single unit will rank first in the country, with an annual sales revenue of 1.75 billion yuan, driving related employment of 1000 people and increasing farmers' income by nearly 100 million yuan.

In the first half of the year, five individual projects within Jiamusi City, namely, Heilongjiang Hongzhan Company Huanan 300000 t/a fuel ethanol, Huanan County Hongzhan Thermal Power Company Economic Development Zone supporting cogeneration, SDIC Xiangyu bioenergy (Fujin) Company 300000 t/a biofuel ethanol, Fujin Economic Development Zone thermoelectric, and Heilongjiang Jinxi Irrigation District Project, have all started and resumed construction, realizing investment warehousing and orderly project progress, Other bundling projects are also progressing step by step.

Among them, the 300000 ton annual fuel ethanol project in Huanan County was built by Heilongjiang Hongzhan bioenergy Co., Ltd. with a total investment of 1.54 billion yuan and an area of 330000 square meters. The project is mainly to build fuel ethanol production plants and supporting facilities, to form an annual production capacity of 300000 tons of fuel ethanol and 270000 tons of DDGS high protein feed, and to process 1 million tons of corn annually. It is expected to be completed in October this year.

The Wanli Runda Annual Production of 300000 tons of Fuel Ethanol Project in Baoqing County, Shuangyashan City completed the civil engineering bidding in January of this year. On February 20th, 5 excavators, 2 pile drivers, 10 transportation vehicles, and hundreds of construction personnel entered the site to carry out the foundation construction of the fermentation tank area and ethanol tank area. The main project has been completed and is expected to be completed in October.

During the construction process of the above-mentioned projects in full swing, some industry insiders have also raised their concerns that there is still a significant gap between the current market promotion progress and expectations. Among the new round of promotion provinces, only Tianjin has made the fastest progress. Although multiple provinces have issued documents and promotion schedules, it is still some time before the real market closure. If the incremental market progresses slowly, it will inevitably lead to supply-demand imbalance and other situations, which will be very detrimental to the healthy development of the industry. What we can expect is that with the continuous expansion of the industry's scale and market capacity, we believe that in the near future, China's biofuel ethanol industry will usher in a bright future.