Industrial Biotechnology China News

Copyright © CCM International Limited

Industrial Biotechnologies China News

Vol.2 Issue 1, 2010

Biotechnologies

Industrial Biotechnologies China News Publication date: 8 January, 2010Vol. 2 Issue 1. 10

Ready reports related to biotechnology:

- Production and Market of Lactic Acid in China -

Edition(2)

- Future of Starches in China

- Future of Green Biotechnology in China –

Edition (1)

- Future of White Biotechnology in China - Edition

(2)

- Biofuels Market in China – Edition (1)

- Production and Market of Monosodium

Glutamate (MSG) in China - Edition (1)

- Future of White Biotechnology in China - Edition

(1)

- Future of Enzyme in China – Edition (1)

- Production & Market of Yeast Extract in China -

Edition (1)

Coming reports related to industrial

biotechnology:

- Future of Enzyme in China – Edition (2)

- Lactic Acid Bacterium Industry in China

- Future of Red Biotechnology in China

- Production and Market of Yeast in Asia

Pacific Rim

CCM related newsletter:

- Corn Products China News

Bio-fuel ........................................ 1Hunan Jiurong dedicated to vernicia montana planting .......1

Breakthrough in fermentation-based hydrogen .................... 2

Technological breakthroughs in increasing biobutanol yield 2

CATAS to improve cassava variety ........................................ 3

Bio-products ................................5Nanning Bioclone’s α-ALDC sees good prospects ................. 5

New laccase production technology developed ..................... 6

Haid Group to expand feed enzyme business ........................ 6

Bio-based chemicals.................... 8Qijian invests in SAM ............................................................. 8

GJPC expansion ...................................................................... 9

Quantum High-Tech eyes high-purity FOS market .............10

Yong’an Pharmaceutical expands taurine business ..............10

Bio-materials ............................. 12New standard on disposable plastic tableware .....................12

Tianjin Green advances PHA industrialization ....................13

Wuhu Zhonghe invests in degradable master batch ............14

NHP to produce PPC film ......................................................15

News in brief .............................. 15 Fujian bans illegal use of waste oil .......................................15

China to further promote non-grain ethanol in Guangxi .....15

China promotes medical biomaterial industry .....................15

Harbin Xinda gets listed in NASDAQ ...................................16

Jiangxi plans extensive biomass energy forest planting.......16

Amendments to Renewable Energy Law approved .............16

China reduces ethanol import tariffs ....................................16

Sichuan develops new heat-resistant genes of plant ............16

A biodiesel technique passes appraisal .................................16

ENN’s microalgae diesel obtains national financial supports .

16

http://www.cnchemicals.com/reports/0009L001/0009L001_2_lactic_acid.shtml


http://www.cnchemicals.com/reports/0009S014/0009S014_1_starch.shtml

http://www.cnchemicals.com/reports/0041G003/0041G003_1_green_biotechnology.shtml

http://www.cnchemicals.com/reports/0041G003/0041G003_1_green_biotechnology.shtml

http://www.cnchemicals.com/reports/0041W001/0041W001_2_white_biotechnology.shtml


http://www.cnchemicals.com/reports/0061B001/0061B001_1_biofuel.shtml

http://www.cnchemicals.com/reports/0009M006/0009M006_1_monosodium_glutamate.shtml

http://www.cnchemicals.com/reports/0009M006/0009M006_1_monosodium_glutamate.shtml



http://www.cnchemicals.com/reports/0049E003/0049E003_1_enzyme.shtml

http://www.cnchemicals.com/reports/0009Y002/0009Y002_1_yeast_extract.shtml

http://www.cnchemicals.com/reports/0009Y002/0009Y002_1_yeast_extract.shtml

http://cnchemicals.com/maindocs/newsletters/samples/China Corn Products News-flyer.pdf

Industrial Biotechnologies China News Publication date: 8 January, 2010Vol. 2 Issue 1. 10

With formal establishment of China - ASEAN Free Trade

Area (CAFTA) in Jan. 2010, new impetus will be injected

into bilateral trade between China and ASEAN countries.

For China who is seeing rapid economic recovery,

the benefits are invaluable, especially at a time when

new energy industry is exploiting new position and an

increasingly key role in Chinese economy.

With growing intention for cooperation between China and

ASEAN, cassava-based fuel ethanol is regarded as a key

development item. China’s key oil producers like COFCO,

CNPC are planning construction of cassava planting bases

in ASEAN, aiming to launch biofuel project on an immense

scale in the near future.

As more than 90% products from ASEAN into China will be

exempted from import tariffs with establishment of CAFTA,

cassava as an important raw material for domestic fuel

ethanol production will have cost advantage, thus to benefit

China’s future ethanol production. Currently, China imports

large quantities of ethanol raw materials, mainly cassava,

from ASEAN every year.

In addition to promoting free trade, CAFTA will promote

China’s industrial structure upgrade thus helping it develop

a green economy.

Headlines■ Hunan Jiurong has planted above 1,100 hectares of vernicia montana as of early Dec., 2009.

■ CEU’s researchers have made breakthrough in fermentation-based hydrogen production through using water hyacinth as raw material by early Dec., 2009.

■ IPPE announced on Dec. 14th, 2009 that it had made significant breakthroughs in increasing biobutanol yield.

■ CATAS launched a national ‘973’ project on improvement of cassava variety on Dec. 15th, 2009.

■ Annual output of Nanning Bioclone’s α-ALDC has reached about 40 tonnes by the end of Dec., 2009.

■ A global leading laccase production technology has been developed at the end of Dec. 2009 and is expected to be applied in China in near future.

■ Haid Group plans to expand feed enzyme business in pace with its feed business.

■ Qijia’s SAM production line is still under construction by early Dec.,

2009, and is expected to be launched in May 2010.

■ GJPC held a foundation ceremony for the establishment of a bioindustrial park on Dec. 8th, 2009.

■ Quantum High-Tech has launched a 5,000 t/a production line of FOS with purity of 95% in Dec. 2009.

■ Yong’an Pharmaceutical is planning to expand its EO-based taurine business through getting listed in 2010.

■ A new national standard on disposable plastic tableware has taken effect formally since Dec. 1st, 2009.

■ Tianjin Green will formally launch a 10,000 t/a PHA production line at the end of Jan., 2010.

■ Wuhu Zhonghe held a foundation ceremony for its first phase project of degradable starch-based master batch production on Dec. 16th, 2009.

■ NHP has sent its PPC film samples to related authorities for sample performance test in early Dec., 2009, and will start the commercial production in early 2010.

Main companies and institutes mentioned in this issue

Industrial Biotechnologies China News Vol. 2 Issue 1. 10

CCM International Limited www.cnchemicals.com1

Bio-fuelHunan Jiurong dedicated to vernicia montana planting

Hunan Jiurong Forestry Biological Energy Source

Development Co., Ltd. (Hunan Jiurong), engaged in energy forest development, has been dedicated to vernicia montana (an important raw material of biodiesel) planting currently.

According to Mr. Chen, board chairman of Hunan Jiurong, the company has planted above 1,100 hectares of vernicia montana as of early Dec., 2009 (PICTURE 1), and plans to increase the planting area to 0.8 million hectares in next 5-8 years.

Hunan Jiurong initiated vernicia montana cultivation in Apr., 2008, and since then it has been cooperating with local farmers in vernicia montana planting, namely that the company cultivates seedlings and provides them to farmers. Meanwhile, it is dedicated to researching on industrialization of biodiesel production technologies that have already passed lab test, and may build a 200,000 t/a biodiesel production line and launch it in 2011.

Mr. Chen strongly believes that this project could create huge economic and social benefits. According to feasibility study report for the vernicia montana planting project

(to increase planting area to 0.8 million hectares in next 5-8 years), after completion of this project, total output of vernicia montana fruits can reach about 18 million tonnes annually which can used as raw materials to produce about 7 million tonnes of biodiesel, a big relief to China’s current diesel imports of around 25 million tonnes. Based on current price of refined biodiesel (about USD878 /t), total sales can reach USD5.8 billion by then. The biodiesel produced by Hunan Jiurong will be sold to domestic three state-owned oil companies. The company currently has negotiated twice with CNOOC on the deal, according to Mr. Chen.

Besides bringing huge economic benefits to the company, this project can also increase local farmers’ income and improve local ecological environment.

There are three cooperation patterns between the company and farmers: one is that Hunan Jiurong rents farmers’ lands and pays about USD1,300 for per hectare planting in Hunan every year; the second is that farmers transfer their own land to Hunan Jiurong and can get 20% of the total output value; the third is the company provides germchits to farmers for planting and purchases fruits at price of about USD88/t.

As vernicia montana can be planted in barren hills and can prevent soil erosion, local ecological environment will be greatly enhanced through the planting.

Additionally, Hunan Jiurong’s large-scale cultivation of vernicia montana arouses attention from overseas investment banks. According to Mr. Chen, Citibank and a Swiss investment bank have ever expressed their intentions to invest in the company’s vernicia montana planting project. But due to Chinese government’s stringent control of overseas enterprises’ controlling stake on national energy, these two foreign banks did not get the opportunity finally.

In order to relieve shortage of biodiesel’s raw material, State Forestry Administration has begun to construct energy forest demonstration bases nationwide since 2006 and it is estimated that China will cultivate about 13 million hectares of energy forests by 2020 (PICTURE 2). And these energy forests will provide ample raw materials for domestic biodiesel enterprises and will facilitate rapid development of domestic biodiesel industry.

Hainan

Heilongjiang

Jilin

Liaoning

Hebei

Shandong

Fujian

Jiangxi

AnhuiHubei

Hunan

GuangdongGuangxi

Shanghai

Henan

Shanxi

Inner Mongolia

Shan’xi

Ningxia

Gansu

Qinghai

Sichuan

Guizhou

Yunnan

Tibet

Xinjiang

Jiangsu

Zhejiang

Beijing

Taiwan

Pistacia chinensis 250,000 hectares

Cornus wilsoniana 50,000 hectares

Xanthoceras sorbifolia 130,000 hectares

Jatropha curcas 400,000 hectares

PICTURE 1: Vernicia montana PICTURE 2: Distribution of major energy plants for biodiesel production, 2010

Source: Hunan Jiurong Source: CCM International




Breakthrough in fermentation-based hydrogen

State Key Laboratory of Clean Energy Utilization (CEU) of Zhejiang University has made

breakthroughs in fermentation-based hydrogen production by early Dec., 2009, using water hyacinth (PICTURE 3) as raw material, according to Professor Luo from CEU.

Water hyacinth is recognized as one of the world's top ten harm grasses, and has done severe harm to vast water area of southern China, because it can destroy ecological environment, affect shipping, impede drainage and irrigation, endanger hydroelectric facilities and cause serious pollution. However, adopting microwave-assisted alkali pretreatment technology invented by CEU, water hyacinth can be efficiently converted into clean fuel.

By now, CEU’s researchers have successfully produced hydrogen, methane and fuel ethanol using water hyacinth as raw material, and are actively researching on industrialized technologies of producing hydrogen with water hyacinth.

At present, there are two mature processes for hydrogen production in the world: one is to use oil, natural gas, coal and other non-renewable resources to produce hydrogen, and 96% of the world’s hydrogen is produced by this method; the other is to produce hydrogen through electrolysis of water.

Despite domination of the first process, from a long-term perspective, it is not sustainable considering the limited and exhausting raw material resources. As for the second one, its production efficiency and yield is low, while the energy consumption is very high (1 cubic meter of hydrogen needs to consume 3 to 4 kWh electricity), leading to poor economical performance in large-scale production of hydrogen by water electrolysis.

Compared with the two processes above, the method of producing hydrogen by fermentation has the following advantages: firstly, its raw materials, such as water hyacinth, straw and organic waste water, are

renewable with relatively low price; secondly, the energy consumption is low with mild reaction conditions; thirdly, it can reduce carbon dioxide emissions.

Besides using water hyacinth to produce hydrogen, Mr. Ren, a professor from Harbin Institute of Technology who was elected as an academician by Chinese Academy of Engineering in early Dec., 2009, has independently developed the technology of producing hydrogen through fermentation of organic wastewater.

As early as 2005, Mr. Ren launched the world’s first fermentation-based hydrogen production line with capacity of 400,000 m3/a and adopting organic wastewater as raw material. By now, production cost of organic wastewater-based hydrogen produced in this line has been reduced to about USD200/dam3.

However, production cost of fermentation-based hydrogen is much higher than traditional energies, mainly restricted by the immature technology worldwide. In order to make it more competitive over oil-based energies, Mr. Ren is developing new production technologies to reduce cost below USD146/dam3.

PICTURE 3: Water hyacinth

Source:www.watergardenlandscaping.net

Technological breakthroughs in increasing biobutanol yield

The Institute of Plant Physiology and Ecology (IPPE) announced on Dec. 14th, 2009 that its researchers

have made technological breakthroughs in increasing biobutanol yield.

As early as 2001, IPPE had obtained a national patent for its successful screening of a bacterial strain named clostridium acetobutylicum with high conversion ratio in biobutanol production. In recent years, IPPE’s researchers have successfully determined genome sequences of this bacterial strain and established a

genetic operating system.

Based on the previous research achievements, Dr. Jiang Yu from IPPE knocked out the gene of key enzyme in acetone metabolic pathway, which can restrain acetone production during the fermentation process thus reducing acetone concentration in the final fermentation liquid containing both butanol and acetone. As a result, butanol yield can be raised from around 70% to above 85%.



Up to now, biobutanol production cost has remained higher than that of oil-based butanol, becoming a key factor restricting rapid development of biobutanol industry. Domestic biobutanol enterprises therefore have been working hard to find effective ways to reduce production costs.

Current high cost of biobutanol is mainly attributed to three factors, namely low butanol yield, high energy consumption in butanol separation process and high raw materials cost.

Firstly, aiming at the first factor, there are two main methods to increase the yield.

One is to increase butanol concentration in fermentation liquid. Main products generated during the butanol production process include butanol, acetone, ethanol and small amounts of carbon dioxide and hydrogen. Through genetic and metabolic technologies, metabolic pathways of acetone and ethanol can be disrupted, and butanol metabolism will be enhanced, thus increasing butanol yield.

The other is to improve fermentation strain’s butanol tolerance. Because butanol can have toxic effects on fermentation strain, butanol concentration in fermentation liquid is very difficult to reach a high level, which also greatly affects the final yield. Therefore, by screening high-yield bacterial strain with high butanol tolerance, butanol’s toxic effects can be relieved, thus increasing butanol yield.

Secondly, energy consumption can be reduced by developing new energy-efficient production processes. In traditional butanol production, the products in the final fermentation liquid are generally to be separated with distillation technology, which requires huge energies. While with in-situ extraction technology, stripping technology, pervaporation separation technology, together with other separation processes,

especially membrane separation process, energy consumption will decline in the separation process thus increasing economic competitiveness of fermentation-based butanol significantly.

Thirdly, raw materials cost can be reduced by using low-cost raw materials and improving pre-processing technologies.

Currently, domestic annual straw output is estimated to reach 650 million tonnes and 726 million tonnes in 2010. Besides, annual output of wastes generated from agricultural processing industry may reach about 82 million tonnes.

These biomass materials with rich cellulose are generally low-cost, therefore, some domestic enterprises and research institutes are researching on comprehensive usage of these materials. For example, on Oct. 17th, 2009, a straw-based butanol project of Jilin Ji’an Biochemical Co., Ltd. (Jilin Ji’an) passed appraisal organized by Chinese Academy of Sciences. With its straw fermentaiton technology, Jilin Ji’an is expected to achieve industrialized production of biobutanol from straw hemicellulose instead of corn starch in 2010. Another potential solution to reducing biobutanol production cost is to increase efficiency of cellulose hydrolysis by improving pre-processing technologies. At present, biobutanol manufacturers generally use acids to process raw materials, which can leave some toxic substances in the raw materials. The toxicity would affect enzyme activity and decline fermentation efficiency.

If the technology of pre-processing raw material is improved, it is likely to replace chemical process with biological one, namely to establish a detoxification mechanism by developing virus-free products to treat the raw material.

CATAS to improve cassava variety

Chinese Academy of Tropical Agricultural Sciences (CATAS) launched a national ‘973’ project on

cassava variety improvement in Haikou city, Hainan province on Dec. 15th, 2009.

The project is the first national ‘973’ project of Hainan province and will be completed in Aug., 2014. The main purpose of CATAS launching this project is to research on metabolic pathways and molecular mechanisms of starch accumulation in cassava, as well as to cultivate new cassava varieties to follow national strategies mainly on bioenergy supply.

In recent years, driven by Chinese government’s growing concerns on food security, some domestic research institutes and companies are actively developing non-grain biomass materials to produce fuel ethanol

(FIGURE 1).FIGURE 1: Capacity structure for fuel ethanol

with different raw materials in China, 2009

20.05%

67.17%

2.51%10.03%

0.25%

Corn Wheat Cassava Sweet potato Cellulose

Source: CCM International



Based on its good economic benefits, cassava has become an important non-grain raw material of fuel ethanol (TABLE 1), and increasing numbers of domestic fuel ethanol enterprises have chosen or are planning cassava-based fuel ethanol production (TABLE 2).

However, as domestic demand for fuel ethanol is soaring, domestic cassava supply is largely lagging behind the demand and domestic fuel ethanol manufacturers need to import large quantities of cassava every year. For example, China’s cassava imports amounted to about 5 million tonnes in 2008. Besides, fresh cassava price has being climbing in recent months from USD55 /t to USD81 /t, which has drastically pushed up production costs.

Therefore, new cassava varieties with high starch content and high yield need to be developed as soon as possible, because low starch content of cassava and low cassava yield have become two main barriers for China’s cassava-based ethanol development.

Currently, starch content of Chinese cassava is only about 28%, much lower than the 70% of Vietnam's. Total yield in Guangxi, China’s largest cassava production area, only recorded about 4.5 million

tonnes in 2008, with cassava planting area of 240,000 hectares.

Assume that the yield of 1 hectare new cassava varieties can increase to 30 tonnes. Based on the yield of excellent overseas varieties, annual cassava yield in Guangxi can rise by 2.7 million tonnes that can be used to produce about 30 tonnes of fuel ethanol.

Besides starch content and yield, cold resistance of cassava needs to be improved. In 2008, due to frozen disaster in Guangxi, more than 60% of local native cassava varieties in Guangxi was frozen to death, and the yield of introduced cassava varieties from Hainan province was very low, as they failed to agree to the climate and soil conditions of Guangxi.

Note: 973 program is also called National Basic Research Program, approved by the Chinese government in June 1997. The strategic objective of the Program is to encourage more Chinese talents to conduct innovative researches on major scientific issues about agriculture, energy, information, resources and environment, population and health, materials and related areas.

Manufacturer Ownership Raw material Capacity (t/a), 2009

Liaoning Jinxin Bio-chemical Co., Ltd. Private Corn, cassava 500,000 (under construction)

Guangdong Hualing Group Co., Ltd. Private Cassava 500,000 (under construction)

Guangxi COFCO Bio-Energy Co., Ltd. State-owned Cassava 200,000 (Under operation)

Hainan Yedao Co., Ltd. Private Cassava 40,000 (under construction)

Guangdong Qingyun Co., Ltd. Private Cassava,

Sugarcane10,000 (under construction)

Item Fresh cassava Cane molasses Corn Wheat

Average price (USD/t) 65.00 131.00 219.00 240.00

Unit consumption of raw materials

(tonne)7.00 5.00 3.20 3.28

Raw material cost (USD/t) 455.00 655.00 700.80 787.20

Ethanol production cost (USD/t) 578.00 731.00 833.00 904.00

TABLE 1: Basic information of Chinese cassava-based ethanol manufacturers

TABLE 2: Cost of ethanol with different materials





Bio-products

Nanning Bioclone’s α-ALDC sees good prospects

Nanning Bioclone Biotechnology Co., Ltd. (Nanning Bioclone), the largest α-acetolactate decarboxylase

(α-ALDC) manufacturer in China, has achieved annual output of α-ALDC about 40 tonnes in 2009, according to Mr. Hou, sales director of the company.

Nanning Bioclone’s α-ALDC capacity currently has reached 60 t/a, and about 70% of its α-ALDC output is for export. Its domestic market share of α-ALDC has reached above 60%.

Based on the following reasons, Nanning Bioclone has succeeded in breaking Novozymes’ domination on Chinese α-ALDC market, which greatly helps domestic beer companies, α-ALDC’s main end user, with production cost reduction and competitiveness enhancement in international market.

First of all, Nanning Bioclone’s α-ALDC production technology has measured up to the world’s leading level.

With this technology, Nanning Bioclone’s α-ALDC product quality has reached the level of Novozymes’ similar product, and the yield can be 3~4 times higher than Novozymes’. Besides, its α-ALDC can shorten beer fermentation cycle, save costs from energies and raw materials and increase beer yield by above 5%, which promotes rapid development of domestic beer industry.

Main inventor of the production technology is Professor Huang, director of Guangxi Academy of Sciences. With this technology, he won the second prize of the 2007 National Science and Technology Progress Award.

Secondly, Nanning Bioclone’s α-ALDC is competitive in price, and creates enormous economic benefits. Before Nanning Bioclone invented α-ALDC production technology, the first time in domestic α-ALDC industry, China’s α-ALDC was in severe shortage. The products consumed at home were imported and the price was as high as USD410,000 /t. After domestic industrialization of α-ALDC production, its prices sharply fell to USD73,000 /t.

Attainment of α-ALDC production can create annual revenue of about USD11 million for domestic beer companies and can save about USD30 million foreign exchange expenditure every year. According to Mr. Hou, the latest price of Nanning Bioclone’s α-ALDC is only USD58,600 /t, about 20% lower than Novozymes’ similar product price.

Thirdly, driven by rapid development of domestic beer industry in recent years, Nanning Bioclone’s α-ALDC with competitive cost will see strong demand. China has become the global largest beer manufacturer (FIGURE 2). In order to increase beer yield, improve product quality, enhance international competitiveness and reduce total production cost, domestic and foreign beer enterprises use more and more enzyme preparations in production process. As α-ALDC plays an important role in beer quality improvement, its consumption in beer brewing industry will maintain a high level. It is predicted that domestic α-ALDC market demand will reach at least 30 tonnes annually.

24

29

39

43

25

35

31

41

0

5

10

15

20

25

30

35

40

45

50

2002 2003 2004 2005 2006 2007 2008 2009est

(Uni

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illio

n to

nnes

)

FIGURE 2: Domestic beer yield, 2002~2009

Source: http://www.okokok.com.cn/Htmls/GenCharts/090421/16985.html



New laccase production technology developed

Dr. Chen announced in the 12th Guangzhou Convention of Overseas Chinese Scholars in Science

and Technology (COCSST) held during Dec. 26th~27th, 2009, that he had developed a global leading laccase production technology. With this technology, laccase product activity can be enhanced above 100 times higher than that of existing laccase products.

With the intention of seeking investors in China, Dr. Chen expects to promote this new technology in China. Adopting transgenic technologies to produce laccase in automated bioreactor, Dr. Chen by now has launched a small-scale production line and developed a operation system with high cell concentration of the strain used in lactase production, stable enzyme activity, easy protein purification and low cost. This technology has won the first prize of the 3rd ‘Chunhui Cup’ Business Start-up Competition on Dec. 25th, 2008.

At present, laccase supply in China depends on imports mainly sourced from Novozymes. Based on a wide range of laccase applications and its high profit margin, prospect of this technology’s industrialization is expected to be bright.

As a kind of copper-containing polyphenol oxidase, laccase can degrade many kinds of macromolecular compounds in an aerobic environment. Currently, it is mainly applied in following six fields.

Pulp and paper industry

Laccase in this field is generally used to remove lignin and biobleach to reduce wastewater pollution. Currently, application dosage of laccase in paper pulp bleaching is only about 100 g/t. Domestic annual pulp output can reach about 20 million tonnes, so annual laccase demand from pulp can reach about 2,000 tonnes.

Laccase application can help manufacturers about 90% of water consumption, 40% of chlorine and electricity consumption, with cost reduction amounting to USD146/t.

Wood processing industryLaccase can replace chemical adhesives to serve as surface active agent. Laccase application is environmentally friendly and helpful in solving formaldehyde pollution and developing non-toxic green artificial panel products.

Environmental protection

Laccase is used to remove toxic substances in contaminated soil and water, and can remove a variety of aromatic pollutants and industrial pollutants. So it can be used to repair contaminated soil and degrade 23 kinds of industrial dyes in dye wastewater of textile industry.

Drink and food processing industries

Laccase can remove phenolic compounds in beverages and make fruit juices bright in color and stable in quality. It can also improve wine stability and reduce use of sulfur dioxide which is commonly used to achieve this effect.

Bioenergy industry

Owing to difficult degradation of lignin, it is unlikely to utilize lignin to produce fuel ethanol. While some varieties of laccase can degrade lignin contained in wheat straws, which can increase utilization ratio of wheat straws in fuel ethanol production.

High-performance optical fiber biosensors

Currently, based on catalytic properties of laccase, laccase electrode has been developed, with advantages like wide measuring range, high accuracy, and good stability and so on.

Additionally, it has great margins to develop laccase. Production cost of every active unit of laccase is under USD0.01 but its sales price can reach above USD1, which can achieve profit growth of above 100 times.

Haid Group to expand feed enzyme business

Guangdong Haid Group Co., Ltd. (Haid Group), a leading feed manufacturer in China, plans to

expand feed enzyme business in pace with its feed business in 2010.

Based on Guangzhou City, Guangdong Province, Haid Group specializes in feed and feed additive production. According to China Feed Industry Association (CFIA), Haid Group ranked 1st and 2nd in China’s aquatic premix feed and aquatic formula feed market in terms

of sales revenue in 2008. Its sales revenue has reached USD307.21 million in H1 2009, up 23.48% over the same period of 2008 (FIGURE 3).The company plans to build a 2,000 t/a feed enzyme production line in one to two months and will launch it in Jul. 2010, with total investment of USD410, 000, raised from its Initial Public Offerings (IPO) in Nov. 2008.

Haid Group’s expansion of feed enzyme capacity is to



keep pace with its rapid development of feed business. After getting listed in Nov. 2008, the company has totally raised about USD22.1 million from IPO to expand its business. The company plans to expand its feed business production capacity by 2.3 million t/a in one year, based on the current 2.3 million t/a, which greatly pushes up its demand for feed enzyme.Besides, Haid Group also expects to expand its feed enzyme business in China in the future. With rapid increase of feed output in China, demand for feed enzyme preparation is growing accordingly. According to CFIA, China’s feed output has reached 137 million tonnes in 2008, up 11.38% over the same period of 2007 (FIGURE 4).

Insiders reveal that the government will encourage domestic feed manufacturers to expand domestic feed output with the aim of over 150 million tonnes in 2010. Since about 1 tonne feed enzyme is added into 10,000 tonnes feed in China, more than 150,000 million tonnes of feed enzyme will be needed by 2010, much larger

than domestic feed enzyme output of no more than 40,000 tonnes in 2009 as estimated (FIGURE 5). The large market of feed enzyme attracts Haid Group to expand its feed enzyme business.

Apart from expanding feed enzyme production capacity, Haid Group announced to invest more in R&D of feed enzyme, mainly considering core technology inefficiency of feed enzyme production, which greatly restricts the industry development. Haid Group has invested about USD326,695 in the reseach, constituting about 0.49% of the company’s sales revenue.

With large investments in the research, Haid Group has developed some core technologies, which helps the company enhance its competitiveness in feed enzyme market. For example, Haid Group has successfully developed a technology for mixed culture of multi-strains, which can increase feed enzyme output by over 30%.

FIGURE 3: Haid Group’s sales revenue, 2006-Jan. 2009

398.63

307.21

663.65

223.56

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

2006 2007 2008 Jan.~Jun. 2009

(Un

it: m

illi

on U

SD

)

100109

137

123

145

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009est

(Un

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Source: Prospectus of Haid Group

FIGURE 4: China’s feed output, 2005- 2009est




815

40

100109

123137

145

3030

0

50

100

150

200

2005 2006 2007 2008 2009est

(Un

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FIGURE 5: Feed enzyme output and demand in China, 2005- 2009est


Bio-based chemicalsQijian invests in SAM

Jilin Qijian Biotechnology Co., Ltd. (Qijian), engaged in developing products by genetic and

enzyme technologies, has been constructing its S-adenosylmethionine (SAM) production line by early Dec., 2009 and expects to launch it in May 2010, according to Mr. Yang, a staff from technology department of the company.

Qijian is China’s first company adopting catalysis process to produce SAM, and has obtained a national patent for the production technology. With investment of USD8.7 million, Oijian will achieve 15t/a SAM capacity in this project.

Qijian targets its SAM market at foreign companies that produce medicines with SAM for patients suffering liver disease and healthcare products used for alleviating mental stress. After launch of its SAM production line, based on the price of about USD878/kg, a future market price estimated by the company, Qijian’s annual sales revenue of SAM can reach about USD13 million.

In recent years, thanks to SAM’s significant therapeutic effects on some common and frequently-occurring diseases such as mental depression, osteoarthritis and liver diseases, SAM applications and its domestic demand have been rising rapidly. It is estimated that domestic demand can reach about USD585 million in 2010 and USD1.5 billion by 2020.

However, limited by immature technology, domestic R&D of SAM has still remained in lab level or initial stage of industrialized production. By now, no company in China achieves SAM industrialized production.

Therefore, domestic supply is severely inadequate and mainly depends on import. It is estimated that SAM import value was above USD14 million in 1999 with annual growth rate of above 25% since then.

Apart from China’s huge SAM market potential attracting Qijian to invest in this product, the company’s technological advantages also serve as its confidence booster. On one hand, compared with traditional process using specific microorganism to produce SAM, Qijian’s new process of biocatalysis, mainly through genetic engineering and enzyme engineering has many advantages, like high purity of final product, simple process, short production cycle, no pollution, relatively low cost, great potential to achieve commercial production.

On the other hand, fermentation-based SAM contains plenty of impurities, thus needing many procedures for purification, the major reason for its high cost. Moreover, fermentation method can cause pollution to a certain degree.

Additionally, Qijian's SAM project adopting biocatalysis process has received a series of preferential policies from the government.

Qijian as a state-approved high-tech enterprise will enjoy preferential policies in terms of income taxes. For example, after launching the SAM production line, Qijian will be exempted from corporate income tax in the first two years and its corporate income tax will be reduced by half in next three years; also, the company’s expenditures in new product R & D can offset some



income tax.

Qijian is a public platform for national bio-enzyme engineering technology identified by National Development and Reform Commission and can be exempted from tariffs and value-added tax on imports of raw materials and equipments. Chinese government will aslo subsidize Qijian in terms of R&D and innovation of

new products.

The company now is applying for national bond financing on its SAM production, and once it is approved, Qijian can get more financial supports and preferential policies in taxation and other aspects. For example, it can get subsidies estimated at 15% of the project investments.

GJPC expansion

Hubei Guangji Pharmaceutical Co., Ltd. (GJPC) held a foundation ceremony for the establishment of a

bioindustrial park (located in Huanggang City, Hubei Province) on Dec. 8th, 2009(TABLE 3). GJPC expects to enhance its innovative capability and international market competitiveness through this project.

This project plays a vital role in GJPC’s competitiveness enhancement. In addition to biopharmacy, the R&D focus of this bio-industrial park, GJPC will also establish various projects of bioenergy, biomaterial and bioenvironmental protection. Depending on its great success in Vitamin B2 (VB2) business and the global leading biofermentation technologies, as well as the high time to largely develop biofermentation industry at home, the company is very optimistic at improving its competitiveness internationally.

Leading position in VB2 business

GJPC currently has become the global largest VB2 manufacturer, dominating around 80% of domestic market share and 40% of international share. GJPC has been making efforts to expand VB2 production capacity and improve VB2 production technology.

According to GJPC’s announcement, its branch company, located in Mengzhou City (Hebei Province) where corn and coal resources are rich, officially launched a 2,500 t/a VB2 production line on Dec. 19th, 2009. By now, GJPC’s total VB2 production capacity has reached about 5,000 t/a. GJPC’s VB2 production workshop was previously located in Hubei Province where local corn and coal resources are insufficient, thus the company has to spend about USD1.7 million in transporting large amount of corn starch and coal from North China. In order to consolidate its leading position in global VB2 market, GJPC is expected to further strengthen VB2 business in this bioindustrial park, which in return

can enhance its overall competitiveness in international market.

New fermentation product development

On the basis of its advanced fermentation technologies, GJPC has been working hard on new product development. In fact, before the bio-industrial park foundation ceremony, GJPC had begun R&D of β-carotene. Up to now, GJPC has completed pilot test of β-carotene and launched a 5 t/a production line. And its researchers are also researching on β-carotene microcapsules technology to improve product market competitiveness.

Strong edges and growth momentum in biofermentation

Mr. He, board chairman of GJPC, believes that compared to other countries, Chinese biofermentation industry has great potential to see a brighter prospect, which is also a driver for the company to launch a comprehensive bioindustrial park. According to Mr. He, there are three indispensable fundamentals for a sustainable development of biofermentation industry, namely ample raw materials, sufficient energies and suitable climate, and only China with such a vast area and a wide variety of climate can simultaneously satisfy the demands. Because the developed countries are likely to gradually withdraw from biofermentation industry due to restrictions on raw material planting and climate, and others with relatively rich resources such as India, Vietnam and Russia have poor advantage in climate which is too hot or too cold.

Therefore, if domestic enterprises can integrate edges both in natural resources and geography in China, as well as advanced domestic fermentation technologies, China’s biofermentation industry will the most competitive in the world.

Investment

(million USD)Construction area (hectare) Launch time Major products

360~430 120 2016~2018 vitamins, amino acids, steroidal drugs

TABLE 3: Basic information of GJPC’s bio-industrial park project

Source: Hubei Guangji Pharmaceutical Co., Ltd.



Quantum High-Tech eyes high-purity FOS market

Jiangmen Quantum High-Tech Biochemical Engineering Co., Ltd. (Quantum High-Tech), China’s

largest fructooligosaccharide (FOS) manufacturer (TABLE 4), has launched a 5,000 t/a production line of FOS with purity of 95% (high purity FOS) in Dec., 2009.

Using sucrose as raw material, Quantum High-Tech is China’s first company to produce high-purity FOS on a large scale, mainly depending on application of chromatographic separation technology

Chinese high-purity FOS is produced through extraction and refining of FOS with 55% purity. Domestic high purity FOS demand is mainly satisfied by imports due to inferior quality of homemade products. It is chromatographic separation technology that shortens production cycle and improves product quality of FOS in China.

As a kind of nutrition enhancer, FOS has been widely used in dairy products, beverage, confection, biscuit, bread, etc.

Quantum High-Tech expects to expand into high purity FOS business based on FOS’s promising market.

On the one hand, Quantum High-Tech is greatly attracted by China’s large market of high purity FOS. Domestic total capacity of FOS was about 40,000 t/a in 2008, among which 55% purity FOS constitutes a large part. But according to Beijing Leadership (a consulting company)’s forecast, annual market demand for FOS will hit 100,000 tonnes in China by 2010, among which 50,000 tonnes are high purity FOS.

On the other hand, Quantum High-Tech has to face

intense competition from foreign FOS processors. At present, domestic FOS manufacturers rarely produce high purity FOS, restricted by technology limitation and capital shortage. Therefore, the products consumed at home are mainly sourced from Japan, Europe, etc. Despite being China’s first FOS manufacturer to realize industrialization of high purity FOS, Quantum High-Tech has to compete with foreign FOS manufacturers and should work hard on sales expansion if it eyes a highly-competitive position in high-purity FOS market.

Besides challenges from overseas competitors, the company may face competition from domestic FOS enterprises. Some companies have plans to expand business into high purity FOS. Take Baolingbao Biology Co., Ltd. (Baolingbao Biology) as example, China’s leading prebiotics enterprise, it issued 20 million A shares in Aug. 2009 to raise fund for 10,000 t/a high-purity FOS production line. The competition in high purity FOS market will be increasingly intensified in the future.

However, Quantum High-Tech has its own competitive edges. Compared with foreign FOS manufacturers, Quantum High-Tech has cost advantages in raw material and transportation, based on ample supply of sucrose in China. Also, as the first company to produce high purity FOS on a large scale in China, Quantum High-Tech can take the lead in grasping market opportunity.

Quantum High-Tech is based on Jiangmen City, Guangdong Province. It mainly produces FOS with 55% purity, with capacity of 10,000 t/a. Its other products include short chain inulin, yeast extract and polypeptide amino acid, etc.

TABLE 4: Main domestic FOS processors, 2009, tonne

Manufacturer FOS with purity of 55% FOS with purity of 95%

Quantum High-Tech 10,000 5,000

Baolingbao Biology 0 10,000 (Under construction)

Yunnan Tianyuan Health Food Co.,

Ltd3,000 10,000 (Under plan)


Yong’an Pharmaceutical expands taurine business

Qianjiang Yong’an Pharmaceutical Co., Ltd. (Yong’an Pharmaceutical), China’s leading taurine

manufacturer, as well as the first one using EO as raw material, is planning to expand its taurine business through getting listed in 2010.

The company currently has passed approval for listing and plans to issue 23.5 million floating stock on

Shenzhen Stock Exchange, aiming to raise about USD63 million for taurine business expansion.

Based on Qianjiang City, Hubei Province, Yong’an Pharmaceutical is mainly engaged in taurine production with taurine capacity of 14,000 t/a. In 2008, its output exceeded capacity reaching 14,725 tonnes, accounting for about 50% of national total, mainly attributed to



strong demand from overseas market. Around 90% of domestic output is exported every year. The company has achieved excellent sales revenue, mainly from taurine business in past few years (FIGURE 6).Yong’an Pharmaceutical plans to build three production lines after getting listed, including a 10,000 t/a taurine production line, a 20,000 t/a ethylene oxide (EO) production line and a production line of downstream products covering taurine effervescent tablet with capacity of 300 million tablets/a and taurine buccal tablet with capacity of 200 million tablets/a.

As China’s first company producing taurine with EO as raw material which is oil-based and outsourced from CNPC, Yong’an Pharmaceutical has independently developed the EO-based taurine production technology (EO process).

After launch of these production lines, the company will be the first one using renewable raw materials to produce taurine in China. It will take corn as starting raw material and produce corn-based EO independently instead of outsourcing oil-based EO.

At present, many other taurine manufacturers use ethanol amine (EA) to produce taurine (EA process) (TABLE 5). Compared with EA process, EO process can help manufacturers cut production cost, shorten production cycle and improve production efficiency. (FIGURE 7)Increasing market demand for taurine attracts Yong’an

Pharmaceutical the most to expand its production capacity. As a kind of nutrition enhancer, taurine has been widely used in beverage, prescription pet foods, health food, feed and drug.

International taurine market has developed rapidly in recent years. According to China National Chemical Information Centre (CNCIC), the national information collection, research and service institution of China chemical industry, the world’s demand reached 84,000 tonnes in 2009, up 20% over 2008, while the output globally was only about 50,000 tonnes.

As the largest taurine production country in the world, China produced about 33,800 tonnes in 2008, sharing about 84.5% of the world’s total. 90% of its output is exported. The rapidly growing market of taurine in the world and the demand & supply gap provide huge potential for domestic taurine manufacturers to expand their business.

Yong’an Pharmaceutical’s EO production line will enable it to reduce dependence on EO supplier. The EO cost constitutes about 44.79% of Yong’an Pharmaceutical’s total taurine production cost. Through realizing EO self-sufficiency, the company can reduce the total cost notably from transportation. Besides, the company plans to sell about 8,000 tonnes EO to end-users after the production line launches, which can increase its sales revenues.

4.61

6.56

9.10

2.30

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

2006 2007 2008 2009

(Un

it: m

illi

on U

SD

)

FIGURE 6: Yong’an Pharmaceutical’s sales revenue, 2006-2009

Source: Prospectus of Yong’an PharmaceuticalNote: Data of 2009 is estimated by CCM International Around 99% of its sales revenue is from taurine business.



Item EO process EA process

Production cost 60%+ 85%+

product yield 80%+ 65%

Production cycle 30hrs 52hrs

Production capacity 5000t/a 800t/a

Production efficiency (per capita output) 50t/a 15t/a

TABLE 5 : Comparison of taurine production by EO and EA processes in China, 2009

Source: CNCIC

FIGURE 7: The world’s taurine demand and output, 2006-2010

Source: CNCICNote: Data of 2010 is estimated by CCM International

58,000

70,000

84,000

100,000

33,00040,000

50,000

62,500

48,000

27,000

0

20,000

40,000

60,000

80,000

100,000

120,000

2006 2007 2008 2009 2010

(Un

it: t

onn

e)

Market demand Output

Bio-materialsNew standard on disposable plastic tableware

‘General Requirement of Disposable Plastic Tableware’, a new national standard jointly released by General

Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) and Standardization Administration of China (SAC), has taken effect formally since Dec. 1st, 2009.

This standard replaced the previous standard ‘General Specification for Single Use and Degradable Lunch Container and Drinking Set’ formally implemented from Jan. 1st, 2000.

This new standard extends the regulatory scope to include disposable plastic tableware. For one thing, it legalizes application of disposable plastic tableware that was not clearly stipulated in previous standard.

What’s more, the new standard places emphasis on safety and sanitary performance which are stipulated as mandatory items, while degradation performance,

service performance and physical mechanics performance as recommended ones.

With the new standard released, some are worried that the new standard will have negative impacts on domestic degradable plastics industry, while industry experts and domestic degradable plastics manufacturers hold opposite opinions.

Mr. Weng, main drafter of the new standard, as well as secretary general from Degradable Plastic Committee of Chinese Plastics Processing Industry Association, expresses that after years’ development, about 20% of domestic degradable plastics manufacturers have gained profit, and now China’s degradable plastics industry is in the stage of commercial popularization. It is high time for China to release this new standard, as the current market is not equitable with many shoddy products circulating and this standard will help elimination of fake products and expansion of real



According to Mr. Weng, many degradable tableware products in domestic market are fake commodities which can not be completely degraded. This new standard gives more stringent requirements on degradable tableware. For example, biological degradation rate is required to be above 60%, and starch content of starch-based tableware above 40%. This will be helpful to crack down on counterfeit and promote popularization of degradable plastics.

Besides, domestic degradable product companies also believe that the standard will have positive impacts on degradable plastics industry.

Miss. Zheng, from Zhejiang Hisun Biomaterials Co., Ltd. (Zhejiang Hisun), thought that this new standard would be more effective than the Notice on the Restriction of the Production, Sale and Usage of Plastic Shopping Bags implemented in 2008 with more detailed and stricter requirements on degradable products stipulated.

Miss. Liu, from Wuhan Huali Environmental Technology Co., Ltd. (Huali), shares the opinions. She expresses that this new standard is expected to create a more fair market, facilitate proper competition, which will definitely help Huali increase sales revenue.

Tianjin Green advances PHA industrialization

Tianjin Green Biosciences Co., Ltd. (Tianjin Green), the company will formally launch a 10,000 t/a

Polyhydroxyalkanoates (PHA) production line at the end of Jan., 2010, according to Mr. Jin, sales staff of the company.Tianjin Green began to construct the production line from Apr., 2008 and completed it in Sep., 2009. By the end of this December, Tianjin Green has successfully produced blown film grade samples. After launch of this project, Tianjin Green will become China’s largest PHA manufacturer (TABLE 6).

With domestic economy recovery, domestic PHA companies’ confidence in PHA prospect has gradually restored since Jul., 2009TABLE. The companies are actively expanding PHA capacity or launching new projects during H2 2009. Ningbo Tian’an Biological Material Co., Ltd. (Ningbo Tian’an), the world’s leading manufacturer of poly hydroxybutyrate–co-valerate (PHBV), constructed its second PHBV production line in 2008 and has expanded its total PHBV production capacity from 1,000 t/a to current 2,000 t/a. Mainly driven by increasing PHBV demand from overseas market, the company’s PHBV output may reach about 1,500 tonnes by the end of 2009.

Shenzhen Ecomann Bio-technology Co., Ltd. (Shenzhen Ecomann), China’s second largest PHA company, launched its first-phase 5,000t/a PHA production line on Jul. 29th, 2009. According to Mr. Yang, from sales department of Shenzhen Ecomann, the company’s PHA monthly output reached about 300 tonnes in Dec., 2009. Currently, it is planning for its second-phase 50,000 t/a PHA production line and expects to launch it as soon as possible.

Additionally, Shandong Lukang Pharmaceutical Co., Ltd (Lukang), listed on Shanghai Stock Exchange, has begun R&D of PHA as early as 2005. In order to achieve industrialization, Lukang on Sep. 21st, 2009 signed a cooperation agreement on PHBHHx production technology with School of Life Sciences, Tsinghua University, who will provide supports on strain cultivation and screening and also on Oct. 30th, 2009, it signed agreement with Multidisciplinary Research Center, Shantou University who will be in charge of technology supports.

It is estimated that China’s market value of PHA will reach USD75 million in 2014, with CAGR of 39.89% from 2009-2014 (FIGURE 8).

Manufacturer Launch time Capacity (t/a) Output (tonne) PHA varieties

Tianjin Green Bioscience Co., Ltd. 2010 10,000 N/A P(3HB-4HB)

Shenzhen Ecomann Biotechnology Co., Ltd. 2009 5,000 500 P3HB, P4HB, PHBV

Ningbo Tian’an Biological material Co., Ltd. 2000 2,000 1,500 PHBV

Jiangsu Nantian Group Co., Ltd. 1998 10 N/A PHB

Shandong Lukang Pharmaceutical Co., Ltd. 2005 1 N/A PHBHHx

TABLE 6: PHA manufacturers in China, 2009




0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011 2012 2013 2014

(Uni

t: to

nne)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

(Uni

t: m

illio

n U

SD)

Output Market value

FIGURE 8: Projected market size of PHA in China, 2009-2014


Wuhu Zhonghe invests in degradable master batch

Wuhu Zhonghe Bio-plastic Science and Technology Co., Ltd. (Wuhu Zhonghe) held a foundation

ceremony for its first-phase project of degradable starch-based master batch on Dec. 16th, 2009. The company will produce this kind of master batch and make key contributions to reducing environmental pollution caused by non-degradable agricultural films.

Wuhu Zhonghe is jointly invested by Anhui Zhongcheng Plastic Science and Technology Co., Ltd. (Anhui Zhongcheng, dedicated to starch-based master batch) and Taiwan Advance industrial Co., Ltd. (Taiwan Advance, dedicated to agricultural films). Its master batch project is divided into two phases. Upon completion of this project, the company’s starch-based master batch capacity can reach 1 million t/a (TABLE 7). Based on following reasons, Anhui Zhongcheng and Taiwan Advance hold optimistic attitudes to the prospect of degradable starch-based master batch.

Firstly, domestic demand for degradable agricultural films will see strong increase.

Since agricultural films play an important role in increasing yield, preventing pest, disease and natural disasters, saving water and increasing farmers’ income, agricultural films have been widely used in recent years in China.

China is the biggest manufacturer and consumer of agricultural films in the world. By 2009, domestic total capacity of agricultural films has reached about 2 million t/a and the output has reached about 1.2 million tonnes, 1.6 times that of the total output of other countries in the world. Domestic consumption of agricultural films has reached about 1.2 million tonnes in 2009 and is estimated to be about 1.5 million tonnes in 2010.

Currently, raw materials of existing agricultural films are non-degradable oil-based materials and the most widely used raw material is polyethylene (PE). Non-degradable agricultural films have caused serious environmental pollution. By adding starch-based master batch, PE can be used to produce degradable agricultural films, which can reduce carbon dioxide emission from the treatment and burning of used non-degradable agricultural films. With release and enforcement of low carbon economy policies, domestic degradable agricultural films will have broad market prospects in next decade.

Secondly, price of starch-based degradable agricultural films is very competitive.

According to Mr. Zhu, from Anhui Zhongcheng, the company will use PE and starch-based master batch produced by Wuhu Zhonghe to produce degradable agricultural films, and its price is only about USD1,685/t, similar with that of PE agricultural films.

Currently, restricted by China’s overall immature technology in using oil-based plastics and starch-based master batch to produce degradable agricultural films, price of the existing products is about USD2,637 /t. For some similar degradable agricultural films (like PLA-based), the price is even higher. Most of these degradable agricultural films are exported. It is expected that after Anhui Zhongcheng realizes the industrialization through this project, the price may decline.

PhaseInvestment

(million USD)

Capacity (t/

a)

Launch

time

First phase 76 500,000 2011

Second

phase 76est 500,000 2013

TABLE 7: Basic information of Wuhu Zhonghe’s master batch project




NHP to produce PPC film

Nantong Huasheng Plastic Products Co., Ltd. (NHP), a domestic company dedicated to PPC film

development, has sent its polypropylene-carbonate (PPC) film samples to related authorities for sample performance test in early Dec., 2009, and expects to start the commercial production in early 2010.

According to Mr. Chen, sales manager from NHP, as early as 2007, the company began the cooperation with Changchun Institute of Applied Chemistry, Chinese Academy of Sciences (CIAC) to develop PPC film. After about three-year R&D, they have successfully developed PPC film production technology and completed construction of a 15,000 t/a PPC film production line in 2009.

As for raw materials of PPC film, NHP purchases them from China National Offshore Oil Co., Ltd. (CNOOC), whose PPC production technology was invented by CIAC. After launch of its PPC film production line, NHP will become the largest PPC film manufacturer in China, and the products will be mainly exported to US.

Mr. Wang, a researcher from CIAC, reveals several advantages of NHP’s PPC film. First of all, compared with other degradable films, functional performance of NHP’s PPC film is more similar to that of traditional polyethylene film; secondly, carbon dioxide content of NHP’s PPC film reaches above 60% but that of existing PPC film in the market is only about 40%.

However, owing to high cost of raw material and

immature production process, price of NHP’s PPC film is less competitive than oil-based plastic film. Currently, PPC price is above USD2,600/t while average price of oil-based plastics is under USD2,300/t, a main reason why other companies’ PPC output in China is mainly exported to developed countries (TABLE 8).

Mr. Wang said that NHP’s production process of NHP is in need of further improvement, as it lacks both research data and experience in continuous production. In order to reduce total production cost, it will continue the cooperation with CIAC to develop new catalysts and new catalytic process, improve downstream processing technology and product stability.

It is estimated that global demand for PPC products may reach about 30 million tonnes in next decade. Chinese government announced to reduce intensity of carbon dioxide emissions per unit of GDP by 2020 by 40% to 45% compared with the level of 2005 in Nov., 2009, which will propel domestic PPC industry significantly in the future.

ManufacturerCapacity

(t/a)

Launch

timeHenan Tianguan Enterprise Group Co.,

Ltd. 5,000 2008

China National Offshore Oil Co., Ltd. 3,000 2008Inner Mongolia Mengxi High-Tech

Group Co., Ltd. 3,000 2004

TABLE 8: Basic information of PPC manufacturers in China, 2009


News in brief

Fujian bans illegal use of waste oilIn Dec., 2009, Fujian Province formulated a regulation prohibiting using waste oil to produce edible oil. The regulation stipulates stringent requirements on collection, transportation and disposal of waste oil, with the aim of forbidding waste oil circulating in food industry.

China to further promote non-grain ethanol in GuangxiOn Dec. 11th, 2009, ‘Several Opinions for State Council on further promoting economic and social development in Guangxi’ was officially released, in which new energy industries place as a development emphasis. According to the policy, Guangxi will make great efforts on non-grain fuel ethanol production and is expected to receive supports from national special fund.

China promotes medical biomaterial industryA forum themed ‘Status and Trends of China’s Biomaterial Research and Industrial Development’, organized by China Academy of Engineering, was held on Dec. 11th, 2009. This forum focuses on R&D, overall direction and objectives, and the latest achievements of Chinese bio-material industry, with the aim of promoting sustainable development of domestic biomaterial industry. Besides, through this forum, China will set up an institution alliance for R&D, innovation of medical biomaterials to promote the industry at home.



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