 "China to rely on alternative fuels to reduce dependence on foreign oil")
In order to reduce imports of foreign oil, China is making strategic shift towards alternative fuels, which have potential to replace up to 483 billion gallons of gasoline in 2020, according to Lux Research’s new report, ‘Guiding through the dynamics of china’s alternative fuels market’. The changes is China’s strategy is creating huge opportunities, notably in natural gas vehicles (NGVs) and in the conversion of coal to ethanol, added the report.
The Asian giant bids to reduce foreign oil imports from the current 50% of domestic demand. What's more, its plans to limit coal-fired power plants, on account of growing pollution, means that vast amounts of oversupplied coal are available for conversion to alternative fuels.
Andrew Soare, Lux Research Senior Analyst and a contributor to the report, said, “While the opportunity for alternative fuels is vast, the opportunities are diverse - ranging from coal-to-ethanol and natural gas vehicles in the near-term to waste-to-liquids in the long term. Downstream partnerships with major state-owned energy heavyweights are particularly important for penetrating the transportation and fuel distribution network.”
China’s push toward liquefied natural gas (LNG) has brought new opportunities for players in the fast-rising natural gas vehicle (NGV) market. Initiatives aim at a target fleet of 1 million heavy-duty NGVs, creating the material and device demands for LNG storage and transportation.
“Coal-to-ethanol is a short-term winner on account of the huge quantities of coal available in China. With Chinese energy giants and academic institutes leading research, coal-to-ethanol is poised for large-scale commercialisation,” added Lux Research report.
The Asian giant bids to reduce foreign oil imports from the current 50% of domestic demand. What's more, its plans to limit coal-fired power plants, on account of growing pollution, means that vast amounts of oversupplied coal are available for conversion to alternative fuels.
Andrew Soare, Lux Research Senior Analyst and a contributor to the report, said, “While the opportunity for alternative fuels is vast, the opportunities are diverse - ranging from coal-to-ethanol and natural gas vehicles in the near-term to waste-to-liquids in the long term. Downstream partnerships with major state-owned energy heavyweights are particularly important for penetrating the transportation and fuel distribution network.”
China’s push toward liquefied natural gas (LNG) has brought new opportunities for players in the fast-rising natural gas vehicle (NGV) market. Initiatives aim at a target fleet of 1 million heavy-duty NGVs, creating the material and device demands for LNG storage and transportation.
“Coal-to-ethanol is a short-term winner on account of the huge quantities of coal available in China. With Chinese energy giants and academic institutes leading research, coal-to-ethanol is poised for large-scale commercialisation,” added Lux Research report.
Opportunity comparison of major alternative fuels in China; Source: Lux Research
China has humungous renewable foodstock resources, estimated at 123 billion gallons of gasoline equivalent per year (BGGEY) and fossil resources (coal and natural gas) worth 360 BGGEY by 2020. However, logistical barriers exist, notably in biomass and waste collection.