C h a p t e r 1

Executive Summary

Market Overview 1-1

Introduction to Chinese Biofuel Market 1-1

Summary of Key Findings 1-2

Key Findings 1-2

Chinese Biodiesel Market Findings 1-4

Chinese Biodiesel Market 1-4

Market Growth Opportunities and Total Forecasts 1-4

Market Drivers and Restraints 1-5

Market Analysis 1-5

Competitive Analysis 1-6

Chinese Bioethanol Market Findings 1-6

Chinese Bioethanol Market 1-6

Market Growth Opportunities and Total Forecasts 1-6

Market Drivers and Restraints 1-7

Market Analysis 1-7

Competitive Analysis 1-7

Research Conclusions 1-8

Conclusion 1-8

C h a p t e r 2

Strategic Analysis of the Total Biofuel Market in China

Market Overview and Definitions 2-1

Market Analysis 2-1

Regulatory Overview 2-2

Regulatory Analysis 2-2

Renewable Energy Act (effective since January 1, 2006) 2-2

Interim Measures on the Administration of Special Funds for the Development of Renewable Energy

(effective since May 30, 2006) 2-3

The Eleventh Five-year Plan on Development of Denatured Fuel Ethanol and Ethanol Gasoline for

Motor Vehicles, 2007 (tentative) 2-3

Administration on Tighter Control of Biomass Fuel Ethanol Project Construction and Promotion of the Healthy

Development of the Industry 2-3

Measures on the Administration of the Product Oil Market 2-3

The Agricultural Biomass Industry Development Plan for 2007-2015 2-4

Measures on the Administration of Financial Management on Flexible Subsidy for Biofuel Ethanol 2-4

Forecasts and Trends 2-4

Market Forecasts 2-4

Production Volume and Revenue Forecasts 2-4

Competitive Analysis 2-5

Competitive Scenario 2-5

Competition Structure 2-5

Market Share Analysis 2-6

Industry Challenges 2-7

Challenges of the Chinese Biofuel Market 2-7

Increasing Demand of Feedstock and its Pressures on Food Security 2-8

Continuity of Tax Reduction and Subsidies 2-8

Variations in International Crude Oil Price 2-8

Reduced Production Cost 2-8

Market Drivers and Restraints 2-9

Market Drivers 2-9

China's Renewable Energy Strategy 2-9

Soaring International Crude Oil Price 2-9

Possible Tax Reduction and Subsidies 2-9

Increasing Urgency of Environmental Protection 2-9

Advances in Biofuel Manufacturing Technology 2-9

China's Dedication Toward Developing Rural Economy 2-10

Market Restraints 2-10

Insufficient Supply of Feedstock 2-10

Incompatibility with Traditional Engines 2-10

Improper Practice and Disorder of the Biofuel Market 2-10

Competition from Other Import Biofuel Products 2-10

End-user Analysis 2-10

End-user Briefing 2-10

Recommendations 2-11

Suggestions 2-11

C h a p t e r 3

Strategic Analysis of the Chinese Biodiesel Market

Market Overview and Definitions 3-1

Introduction 3-1

Competitive Analysis 3-2

Competitive Scenario 3-2

Competitive Structure 3-2

Market Share Analysis 3-2

Forecasts and Trends 3-3

Market Drivers 3-3

China's Support for Renewable Energy 3-3

China's Constant Effort in Developing Rural Economy 3-3

Availability of Waste Oil Due to Chinese Cooking Habits 3-4

Advances in Biodiesel Conversion Technology 3-4

Market Restraints 3-4

Unstable Waste Grease and Oil Supply and Small Acreage of Energy Plants 3-5

Incomplete National Policy and Standards for Biodiesel Industry 3-5

Incompatibility with Diesel Engines 3-5

Biodiesel's Adverse Effect on Bio-Diversity 3-5

Biodiesel Feedstock Analysis 3-6

Feedstock Overview 3-6

Waste Grease and Oil 3-6

Jatropha curcas L. 3-6

Other Energy Plants 3-7

Unit Shipment and Revenue Forecasts 3-9

Volume and Revenue Forecasts 3-9

End-user Analysis 3-10

End-user Briefing 3-10

Pricing Trends 3-11

Trends Analysis 3-11

C h a p t e r 4

Strategic Analysis of the Chinese Bioethanol Market

Market Overview and Definitions 4-1

Introduction 4-1

Competitive Analysis 4-2

Competitive Scenario 4-2

Competitive Structure 4-2

Market Share Analysis 4-3

Forecasts and Trends 4-3

Market Drivers 4-3

Expectation of a Higher Petroleum Price in the Next Five Years 4-3

Tax Exemption and Governmental Financial Aid 4-4

Mass Plantation of Energy Crops 4-4

Advances in Bioethanol Conversion Technology 4-4

Increasing Urgency of Environmental Protection 4-4

Market Restraints 4-4

Possible Change in Tax And Subsidy Policy 4-5

Unstable Feedstock Supply and Low Acreage of Energy Crops 4-5

Difficulties in Transportation and Storage of Energy Crops 4-5

Backwardness in the Processing Technology 4-5

Bioethanol Feedstock Analysis 4-5

Feedstock Overview 4-5

Maize 4-6

Wheat 4-6

Cassava 4-7

Sweet Potato 4-7

Sweet Sorghum 4-7

Cellulose and Other Feedstocks 4-8

Unit Shipment and Revenue Forecasts 4-8

Volume and Revenue Forecasts 4-8

End-user Analysis 4-10

End-user Briefing 4-10

Pricing Trends 4-10

Trends Analysis 4-10

C h a p t e r 5

Regulatory and Legislatory Analysis

Overview 5-1

Introduction 5-1

Biofuel Laws and Regulations in China 5-1

Laws and Regulations 5-1

Article 16 5-2

Article 31 5-2

Legislatory Trends 5-5

Trend Analysis 5-5

C h a p t e r 6

Appendix

Reference 6-1

Exchange Rates 6-1

Abbreviations 6-1

Notes 6-2