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China's Henan Tianguan to expand cellulosic ethanol capacity

Henan Tianguan Fuel Ethanol Company bared plans to expand its cellulosic ethanol capacity by 2014 to 120,000 metric tons per year (mtpy). Construction of 12 plants will begin by the end of this year, each with a 10,000 mt capacity. Henan Tianguan will use straw as feedstock. Feedstock consumption is expected to reach one million mtpy. The company is the only Chinese biofuels producer owned by the state. It is the first biofuels producer that uses cellulose as feedstock. Current capacity is 10,000 mtpy . The company receives a subsidy of US$157/mt from the government. (October 17, 2011)