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The 2024 government work report proposes to vigorously develop a low-carbon economy and promote the development of the waste recycling industry.
As one of the key pathways for renewable energy development, biofuels play an indispensable role in environmental protection and sustainable energy strategies. Advanced biofuels refer to gaseous or liquid fuels that are converted and produced by physical, chemical, biological and other technical means using biomass resources as raw materials, mainly including bio-natural gas, biofuel ethanol, biodiesel, renewable methanol and sustainable aviation fuel. It has many characteristics and advantages such as low carbon and renewable, and can play a unique role in promoting the use of renewable energy.
The development process of biofuel policy in mainland China shows a process from initial exploration to gradual development. In the 11th Five-Year Plan, the production of fuel ethanol and biodiesel is encouraged; The 12th Five-Year Plan proposes to strengthen the development of next-generation biofuel technologies, and add bioenergy support policies such as biogas and biohydrogen production; The 13th Five-Year Plan emphasizes the preparation of low-cost biofuels; The "14th Five-Year Plan" proposes to vigorously develop non-food biofuels such as cellulosic fuel and ethanol.
Among them, the "14th Five-Year Plan" for renewable energy development proposes to optimize the development mode, develop renewable energy on a large scale, and steadily promote the diversified development of biomass energy. Development planning targets have been made in the areas of biomass energy, biomass clean heating, bio-natural gas, and non-food biomass liquid fuels.
From the perspective of subdivisions, at present, the mainland biodiesel industry has received unprecedented attention. The official website of the National Energy Administration issued the "Notice of the Comprehensive Department of the National Energy Administration on Publicizing the Pilot Program for the Promotion and Application of Biodiesel", and 22 units and projects were shortlisted. The National Energy Administration will organize the "gutter oil" collection, storage and transportation system is relatively perfect, with the willingness to promote, and the layout of biodiesel production enterprises in a timely manner, to carry out the pilot project of biodiesel promotion and application in an orderly manner, and gradually form a demonstration effect and scale effect. At the same time, it will also promote the further improvement of the biodiesel standard system, and promote the establishment of a biodiesel green certification system and a green value realization mechanism.
Top 10 most promising biofuel companies in China
According to the big data of Qichamao, the listed biofuel companies in the mainland are mainly distributed in the central and eastern coastal areas, and the number of enterprises in the western region is small. Among them, there are a large number of listed companies in the biofuel industry in Jiangsu Province, which are distributed in various links such as crop waste, municipal solid waste treatment, and biofuel production.
Specifically, enterprises in the mainland biofuel industry are mainly divided into biodiesel production enterprises and bioethanol production enterprises. Among them, the representative enterprises in the field of biodiesel include Jiaao Environmental Protection, Luculent Group, Haixin Energy, etc.; Representative enterprises in the field of bioethanol include COFCO Technology, SDIC Biotechnology, Tianguan Group, etc.
Zhejiang Jiaao Environmental Protection Technology Co., Ltd
At present, Jiaao Environmental Protection is the most competitive and promising biodiesel manufacturer in the Yangtze River Delta region of mainland China.
The company was founded in 2003; In 2016, the company was listed on the A-share market; In 2017, the company achieved large-scale production in the first development of the European biomass energy market; In 2018, the company's biodiesel production capacity was expanded to 100,000 tons; In February 2021, the company officially signed a long-term sales contract for biodiesel exports of about 1.089 billion yuan with "Shell Trading"; In August 2021, the green new energy project with an annual output of 100,000 tons of biodiesel of Jiaao Environmental Protection subsidiary was changed to an annual output of 350,000 tons of biodiesel and raw materials. By 2023, the company's biodiesel design capacity will reach 700,000 tons.
Jiaao Environmental Protection is a large-scale, product quality strict implementation of EU EN14214 standards, and the influence of biodiesel production enterprises, the company's biodiesel products have obtained the world's largest biodiesel consumption area of the European Union ISCC and DDC certification, the current biodiesel business export-oriented.
According to Qichamao, the company has 6 subsidiaries, namely: Zhejiang Jiasui Import and Export Co., Ltd., Zhejiang Dongjiang Energy Technology Co., Ltd., Jiaxing Ruotian New Material Technology Co., Ltd., Fujian Mingzhou Environmental Protection Development Co., Ltd., Zhejiang Jiaao Green New Energy Co., Ltd., Jining Jiaao Dingxin Environmental Protection New Materials Co., Ltd.
Jiaao Environmental Protection released its annual performance report on the evening of April 26, saying that its operating income in 2023 will be about 2.666 billion yuan, a year-on-year decrease of 16.98%; net profit attributable to shareholders of the listed company was about 2.09 million yuan; Basic earnings per share was 0.027 yuan. In the same period of 2022, the operating income was about 3.211 billion yuan, the net profit loss attributable to shareholders of the listed company was about 32.44 million yuan, and the basic earnings per share loss was 0.4362 yuan.
Shenzhen Luculent Environment Group Co., Ltd
Luculent Environment Group is one of the earliest enterprises in China to carry out the co-treatment of organic solid waste and the production of biodiesel from deep resources, and has built two biodiesel projects in Longgang District of Shenzhen and Huangpu District of Guangzhou, which have been put into operation in 2016 and 2021.
According to the information on the official website, Luculent has set up a biodiesel business department in the environment, and its core management team comes from Tsinghua University, South China University of Technology and other key universities, with a total of more than 140 employees. Among them, Luculent Environment Group cooperates with Tsinghua University to produce biodiesel by biological enzymatic method, which is at room temperature and pressure, does not use strong acids and alkalis, has no polluting emissions, is safe and environmentally friendly, and has reached the leading level in China.
The high-quality biodiesel produced by the Group through the resource utilization of waste oil has passed the European Union ISCC, the Netherlands DDC certification, and the ISO9001, 14001, 45001 three system certifications, and 90% of the products are exported to Europe.
By 2022, the biodiesel produced by Luculent Environment Group has replaced petrochemical diesel, and the cumulative reduction of carbon dioxide emissions has exceeded 500,000 tons.
As of 2023, the company has 34 biomass resource regeneration center projects, of which 21 have been put into operation, and has 5 projects with a daily processing capacity of more than 1,000 tons, ranking among the top in the country in terms of market share in first-tier cities.
On the evening of April 18, Luculent disclosed its 2023 annual report, which showed that the company's operating income was 1.753 billion yuan, down 3.61% year-on-year, and its net profit was 179 million yuan, down 26.26% year-on-year. The total assets at the end of the period were 5.956 billion yuan, an increase of 33.57% over the previous year; The owner's equity attributable to the parent company at the end of the period was 3.401 billion yuan, an increase of 84.25% over the previous year.
Beijing Haixin Energy Technology Co., Ltd
Beijing Haixin Energy Technology Co., Ltd. (formerly known as Beijing Sanju Environmental Protection New Materials Co., Ltd.) is a holding company of Beijing Haidian District State-owned Assets Investment and Management Co., Ltd., established in 1997 and listed on the Shenzhen Stock Exchange in April 2010.
Haixin Energy is a state-level high-tech enterprise with a complete R&D system, forming a business system based on bioenergy, energy purification, characteristic chemicals, engineering services and carbon-based fertilizers. According to the official website, all aspects of Haixin's business have passed ISCC certification, and the carbon emission reduction rate of products can reach more than 80%. The production and commissioned processing plants are distributed in Rizhao, Shandong, Lingao, Hainan, Hebi, Henan, Heze, Henan, Anyang, Henan, etc., with a total production capacity of 400,000 tons per year (products).
On April 25, Haixin Energy disclosed its 2023 annual report. In 2023, the company will achieve operating income of 7.654 billion yuan, a year-on-year decrease of 11.5%; The net profit attributable to the parent company was 84.1545 million yuan, compared with a loss of 805 million yuan in the same period last year.
Henan Junheng Industrial Group Biotechnology Co., Ltd
From the macro trend. Under the "dual carbon" goal, it is the general trend for the global aviation industry to "go green". Bio-jet fuel (SAF) has become another new track in the high-quality development of China's civil aviation.
At present, only two companies in mainland China have passed the airworthiness certification of the Civil Aviation Administration of China and can be put into commercial use. One of them is Junheng Biotechnology.
Henan Junheng Industrial Group Biotechnology Co., Ltd. was established in May 2012 with a registered capital of 300 million yuan, registered in the northwest corner of the intersection of Huanghe East Road and Jingqi Road in Puyang City, the legal representative is Zhang Hao, and there are more than 400 employees. It is mainly engaged in the research and development, production, sales and import and export of Class II and Class III lubricant base oil, high-grade white oil, high-end lubricants, bio-light oil, hydrogenated vegetable oil, hydrocarbon-based biodiesel, sustainable aviation fuel (SAF), bio-based lubricating materials and other products.
According to reports, Junheng Biotech has won four national "firsts". They are: the country's first private enterprise to produce sustainable aviation fuel; The first private enterprise in China to obtain the sustainable aviation fuel airworthiness certificate; The largest hydrocarbon-based biodiesel and sustainable aviation fuel production base in China; The first enterprise in the country with the ability to commercialize sustainable aviation fuel.
China Petroleum & Chemical Corporation Zhenhai Refining & Chemical Branch
Recently, two domestically produced C919 large passenger aircraft and ARJ21 regional aircraft successfully completed the test flight mission after refueling the bio-jet fuel (bio-aviation kerosene) independently developed by the mainland for the first time.
It is understood that the bio-jet fuel is processed by the Zhenhai Refining and Chemical Branch of China Petroleum & Chemical Corporation (hereinafter referred to as "Zhenhai Refining & Chemical") from the waste oil commonly known as "gutter oil".
China Petroleum & Chemical Corporation Zhenhai Refining & Chemical Branch (hereinafter referred to as "Zhenhai Refining & Chemical") is located in Ningbo City, Zhejiang Province, formerly known as Zhejiang Oil Refinery founded in 1975, transferred to the former China Petrochemical Corporation in 1983, and listed in Hong Kong after overall restructuring in 1994; In 2006, according to Sinopec's strategic deployment, it was dissipated back to the listed position and registered as Zhenhai Refining & Chemical Branch of China Petroleum & Chemical Corporation.
According to the official website, Zhenhai Refining & Chemical currently has a crude oil processing capacity of 27 million tons/year, an ethylene production capacity of 2.2 million tons/year, a throughput capacity of 83.54 million tons/year, and a tank storage capacity of 17.18 million cubic meters. Entering the "14th Five-Year Plan", Zhenhai Refining & Chemical Co., Ltd. will strive to build a higher quality green petrochemical base with an output value of 300 billion yuan according to the "12345" main line and "443" plan.
According to the 2023 Ningbo Top 100 Enterprises List, Sinopec Zhenhai Refining & Chemical Branch achieved revenue of more than 156.8 billion yuan in 2022, making it the only enterprise in Zhenhai whose operating income exceeded 100 billion yuan and ranking second among the top 100 comprehensive enterprises in Ningbo in 2023.
COFCO Biotechnology Co., Ltd
COFCO Biotechnology Co., Ltd. (hereinafter referred to as COFCO Technology) is currently one of the largest and most technologically advanced corn deep processing enterprises in China, and is committed to becoming the best provider of nutritious, healthy, low-carbon and environmentally friendly biochemical products.
COFCO Science & Technology has a National Engineering Research Center for Corn Deep Processing, a National Energy Bioliquid Fuel R&D (Experimental) Center, 1 National Enterprise Technology Center and 3 Academician Workstations, focusing on the forefront of the industry at home and abroad, conducting engineering research on high-tech and high value-added products, and continuously providing key technologies for the large-scale production of corn deep processing products, and the research results can be quickly transformed into productivity and market.
Up to now, COFCO Technology has applied for more than 900 invention and utility model patents, and has obtained more than 360 authorized patents.
According to the latest investor questions, COFCO Technology said on May 13 that the company uses biological fermentation technology to produce ethanol, with a production capacity of about 1.35 million tons/year.
According to the latest financial report, the main product of COFCO Technology's clean energy business is biofuel ethanol. The business is able to flexibly produce fuel ethanol from corn, cassava, inedible rice and wheat, and its products include disinfectant alcohol, premium alcohol, and chemical absolute ethanol. In addition, the market-oriented development process of non-food fuel ethanol is advancing in an orderly manner, and the technical reserves of cellulosic fuel ethanol can meet the needs of large-scale development. During the reporting period, the company maintained its leading position in the fuel ethanol scale and technology industry.
SDIC Biotechnology Investment Co., Ltd
Bioethanol is one of the most widely used renewable energy sources at present, with an annual global output of about 90 million tons, which plays an important role in coping with the energy crisis and protecting the ecological environment.
In August 2023, China's first 200Nm3/h bioethanol reforming hydrogen production unit jointly developed by SDIC Biotechnology Investment Co., Ltd. and the Research Center for Eco-Environmental Sciences of the Chinese Academy of Sciences was successfully put into operation in SDIC Guangdong Bioenergy Co., Ltd. Up to now, it has been in continuous operation for more than 400 hours, and the purity of hydrogen has reached 5N.
According to Qichamao, SDIC Biotechnology Investment Co., Ltd. was established on February 28, 2017, and its registered place is located in Room 101, No. 638, Dongdaming Road, Hongkou District, Shanghai, and its legal representative is Han Song. The scope of business includes general projects: investment management; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion; R&D of industrial enzyme preparations; biological feed research and development; R&D of extraction, purification and synthesis technology of marine bioactive substances; import and export of goods; technology import and export; installation and maintenance of professional machinery for agriculture, forestry, animal husbandry and sideline fishery; grain purchases; sales of food additives; sales of feed raw materials; sales of feed additives; fertilizer sales; wholesale of edible agricultural products; retail of edible agricultural products; Grain sales. (Except for projects that must be approved in accordance with the law, independently carry out business activities in accordance with the law with a business license) SDIC Biotechnology Investment Co., Ltd. has invested in 18 companies and has 2 branches.
Henan Tianguan Enterprise Group Co., Ltd
Henan Tianguan Enterprise Group Co., Ltd. was established on March 26, 1997, registered at No. 1, Tianguan Avenue, Nanyang Ecological Industrial Park, and its legal representative is Zhang Xiaoyang.
The business scope includes the production and sales of denatured fuel ethanol, the production and sales of acetone, butanol, polyols and fully degradable plastics, the production and sales of biodiesel (limited to branch operations), the sales of chemical products (operating with a valid license), the sales of gluten and feed, and the production of acetic acid and acetaldehyde (operating with a valid license). Operate the export business of self-produced products and related technologies of the enterprise and its member enterprises; Operate the import business of raw and auxiliary materials, machinery and equipment, instrumentation, spare parts and related technologies required for the production and scientific research of the enterprise and its member enterprises; Operate the company's feed processing and "three to one supplement" business# Henan Tianguan Enterprise Group Co., Ltd. has invested in 37 companies and has 2 branches.
Xingchu Century Technology Co., Ltd
Founded in 2007, Xingchu Century Technology Co., Ltd. is a world-renowned provider of new energy smart microgrid solutions and a national high-tech enterprise.
The company is committed to providing first-class smart microgrid solutions for customers at home and abroad, including technology research and development, product production, sales and trade, engineering design and implementation, energy management and optimization of wind, solar, water, storage and charging. After years of development, the company has accumulated strong technical strength and rich engineering experience, formed a first-class technology research and development, engineering implementation and market development team, all-round guarantee of the company's business development, the market covers most of the domestic and overseas "Belt and Road" countries and European markets, to provide customers with the best solutions and services.
Beijing Shougang LanzaTech Co., Ltd
Beijing Shougang LanzaTech Technology Co., Ltd. was established on November 11, 2011, and its registered office is located in Room 1601-6, 16th Floor, Building 1, Yard 1, Tianshunzhuang North Road, Shijingshan District, Beijing, and its legal representative is Wang Guiyang.
The business scope includes research and development of industrial gas (tail gas) fermentation to fuel ethanol technology and related products; Provide technology transfer, technical consultation, technical training and technical services for the above products; sales of self-developed products; import and export of goods; technology import and export; import and export agent; Investment management, investment consulting, project investment (except for the above projects requiring special approval). (Market entities independently select business projects and carry out business activities in accordance with law; For projects subject to approval in accordance with the law, business activities shall be carried out in accordance with the approved content after approval by relevant departments; It shall not engage in business activities of projects prohibited and restricted by the national and municipal industrial policies. Beijing Shougang LanzaTech Co., Ltd. invested in 4 companies.
Competitive analysis of China's biofuels industry
Market concentration of China's biofuels industry
The market concentration of the biofuel industry in China is relatively high. In 2023, the CR3 of the bioethanol industry will exceed 60%; CR10 is more than 90%; The CR3 in the biodiesel industry is more than 30%, and the CR10 is more than 70%. On the whole, the leading enterprises in the biofuel industry have obvious advantages.
Summary of the competitive status of China's biofuels industry
From the perspective of the five forces competition model, at present, biofuels, as "green energy", have the advantages of renewable, clean and safe, and face less threat of substitutes. The technical nature of biofuel products is not strong, the homogenization of products is serious, and existing enterprises are facing greater competitive pressure; The upstream of the biofuel industry is the supply of waste oil raw materials, and the price of waste oil and fat is subject to the fluctuation of crude oil prices, and the biofuel industry has certain bargaining power over upstream suppliers; The number of production enterprises in the downstream field is relatively large, the product demand has stabilized, and the mainland biofuel industry has weak bargaining power for downstream customers; At the same time, it has high technical and production barriers, and the threat of potential entrants is small.
Expert views on China's biofuels industry
According to the "China Advanced Biofuels Development Outlook" report released by the Biomass Energy Industry Branch of the China Association for the Promotion of Industrial Development, it is expected that by 2030, China's advanced biofuel production will reach 23.98 million tons of standard coal, and the demand will reach 27.46 million tons of standard coal, achieving carbon emission reduction of more than 50 million tons. By 2050, the production of advanced biofuels will reach 340 million tons of standard coal, the demand will be 312 million tons of standard coal, and the carbon emission reduction will be nearly 640 million tons.
Zhang Dayong, Deputy Secretary-General of the China Industrial Development Promotion Association and Secretary-General of the Biomass Energy Industry Branch, pointed out that China's advanced biofuel industry has great development potential under the huge development opportunities, and will still be in short supply in the short term. In the future, with technological breakthroughs and cost reductions, the production of advanced biofuels will gradually meet the market demand.
From the perspective of the subdivision track, industry insiders call for further improvement of the tax support policies for the sustainable aviation fuel industry chain, appropriate financial subsidies for all links of the industrial chain such as the R&D and production of eligible sustainable aviation fuel technology, the formulation of a roadmap for carbon emission reduction in the aviation industry, the proposal of mandatory or guiding sustainable aviation fuel blending ratio targets and plans, and the establishment and improvement of the SAF carbon certificate trading system and operation system, so as to support the healthy development of the green and sustainable fuel product industry.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on Market Prospect and Investment Strategic Planning of China's Biofuel Industry" by Qianzhan Industry Research Institute.
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