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Cellulosic ethanol economically favorable for China

Cellulosic ethanol is economically favorable and creates social, environmental and financial benefits to China compared to other CO2 abatement technologies in transportation, according to a joint report by Novozymes and McKinsey & Co. The report was based on China-specific costs, including raw material collection and transportation, ethanol production, midstream logistics and downstream distribution. In the short term, building the cellulosic ethanol industry in China represents an RMB90 billion (US$13.19 billion) business opportunity of which Chinese companies are expected to capture more than 75%. In 2010, Novozymes said it will be ready to deliver enzymes for commercial production of ethanol based on agricultural residues. On February 2, Novozymes and its Chinese partner COFCO Ltd. entered into a new partnership with major Chinese oil and energy company China Petroleum and Chemical Corp. (Sinopec) to develop a commercial-scale process for producing bioethanol from corn stover. Together, the three partners will cover the entire value chain of bioethanol production and distribution. China, which has pledged to curb emissions of greenhouse gases, could overtake the United States as the world’s top cellulosic producer by 2013, Novozymes’ Chief Executive Officer Steen Riisgaard said. (April 20/ May 6, 2009)