Biofuel industry or enter the down channel

China Chemical News, International Energy Agency (IEA) recently released the "2011 mid-term biofuel market report," pointed out that due to the impact of Brazil's ethanol production growth is worrisome and the US market is increasingly saturated, the global biofuel production growth over the next five years Will be lower than the previous forecast level.

The report predicts that global biofuel production will increase by 400,000 barrels per day between 2010 and 2016, from 1.82 million barrels per day in 2010 to 2.22 million barrels per day in 2016. In the report of June last year, this figure was 500,000 barrels.

In addition, the IEA lowered its 2011 ethanol production forecast for Brazil in 2011 by 75,000 barrels per day to 375,000 barrels per day, mainly due to the poor sugarcane harvest and higher prices in Brazil this year. In the next five years, IEA will reduce its daily production of ethanol in Brazil by 100,000 barrels, and it is expected that it will only reach 530,000 barrels per day in 2016.

Coincidentally, the United States recently announced its plan to stop funding the development of alternative fuel ethanol.

According to VOA reports, after the end of 2011, the U.S. government no longer provides funding to companies that produce ethanol fuel.

In 2011, the ethanol fuel company received a 50-cent tax rebate for every 3.8 liters of ethanol produced. The U.S. government provided a total of $6 billion in rebates for ethanol fuel companies in 2011. In 2011, U.S. politicians quarreled over government spending.

The purpose of 30 years of financial assistance and tariffs on foreign imports of ethanol is to strengthen the development of the alternative fuel industry. Proponents stated that ethanol produced in the United States helps reduce the United States’ dependence on overseas oil while reducing the air pollution caused by cars and trucks.

However, providing tax rebates and tariff measures to the ethanol fuel industry is costly. And critics say that the pollution in corn production is higher than the exhaust pollution that cars use to reduce the use of ethanol fuel. The tax rebate subsidies and import tariff measures received by the ethanol fuel industry will end at the end of 2011.