China's plan to increase the use of bioethanol gasoline will not have a significant impact on the grain market, and it would be "unrealistic" for the country to import large amounts of corn, a Chinese official said Friday.
Ethanol fuel, known as E10, is ordinary gasoline with 10 percent ethanol added and believed to cut carbon monoxide and carbon dioxide emissions. "The government plan to increase ethanol fuel production is for consuming corn stocks," said Han Jun, director of the central agricultural work leading team office, at a press conference.
Years of support for corn farmers has left China with a substantial stockpile. In 2016, China's corn output stood at around 220 million tonnes, while stocks amounted to 230 million tonnes.
According to government estimates, China's stockpile will suffice in the short term, he said, achieving a supply-demand balance in the corn market in three to five years.
Earlier this month, China said it wanted nationwide use of bioethanol gasoline by 2020, and aimed to have an advanced liquid biofuel system and demonstration facility in operation by then, capable of producing 50,000 tonnes of cellulosic ethanol a year.
