National Development and Reform Commission: Biofuel ethanol project must not be blindly launched

The National Development and Reform Commission and the Ministry of Finance recently issued a notice requesting the strengthening of the construction, management, and approval of biofuel ethanol projects. It is stipulated that the biofuel ethanol project shall be subject to the approval system, and its construction projects must be approved by the national investment authority and the financial department.
According to reports, as one of the ten key projects of the “Tenth Five-Year Plan”, the biofuel ethanol industry has achieved phased results. Since the beginning of this year, local governments have been actively requesting the development of the biofuels ethanol industry, and the enthusiasm for building fuel ethanol projects has been unprecedentedly high. In some areas, there is a trend of overheated industry and blind development. At present, there is an interest in the names of biofuel ethanol or non-food biological liquid fuels. The production capacity has exceeded 10 million tons, and the biofuel ethanol industry is at a critical period of development.
The "Notice" of the National Development and Reform Commission and the Ministry of Finance proposed that the development of bio-fuel ethanol as a national strategic measure is highly policy-oriented and difficult, and it is a complex system project. We must tighten market access standards and policies and strictly manage and approve project construction. Before the State Council approved the implementation of the "11th Five-Year Plan for Special Development of Biofuels Ethanol and Automotive Ethanol Gasoline," in addition to the pilot program for approval of the Guangxi Cassava Ethanol Phase I project, no matter whether it is based on non-food raw materials or other raw materials The approval and construction of the fuel ethanol project shall be submitted to the national certification.
Non-food demonstrations must also be implemented in accordance with relevant regulations. Any non-compliance with the approval and construction without authorization shall not enjoy the preferential fiscal and taxation policies for fuel ethanol, and the economic losses caused will be investigated for the responsibility of the relevant units in accordance with the relevant regulations. Non-fixed-point enterprises producing and supplying fuel ethanol, and fixed-point fuel ethanol enterprises without permission from the State, and arbitrarily expanding production scale and arbitrarily purchasing ethanol from fixed-point enterprises, will not be given financial subsidies, and the relevant functional departments will be punished according to relevant regulations.

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