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Raw materials: basically no problem The initial raw material for producing fuel ethanol is Chenhualiang. In the past, the government needed to subsidize more than 10 billion yuan in annual financial subsidies for aging grain. Storage, Henan, inventories of more than 250 million tons of wheat each year, Chen Hualiang reached 3.2 million tons, only Henan Province, the annual fiscal government will have to take out 28 billion subsidies Chen Hualiang. The situation has now undergone qualitative changes. The production of ethanol gasoline has digested all of Chen’s grains in Henan, and the financial burden has been completely relieved.
Then, what will Henan Province produce fuel ethanol in the future? According to the provincial Development and Reform Commission, the main raw material for production of fuel ethanol by Henan Tianguan Group is to store excess grain. She said that overstocked food stocks also need to be rotated periodically. Although they have not been identified by Chen Hualiang, the time for overstocking of food stocks has been long, and humans and animals cannot eat.
The reporter was informed that the characteristic of ethanol production is the joint production with feed. Henan Province is a large food province, and wheat production ranks first in the country all year round. The national fixed-point production of ethanol-gasoline Tianguan Group produces 300,000 tons of fuel ethanol per annum, requiring 1.05 million tons of raw materials. After deducting the combined output of 320,000 tons of feed, the actual consumption of grain is less than 730,000 tons, accounting for the total grain output of normal years in Henan. 1.8%, on the whole, will not pose a threat to food security.
Price: "Benefit" is the key Price is the decisive factor for consumers to accept ethanol gasoline. The price of ethanol gasoline in Henan Province has been cheaper than regular gasoline since its initial promotion. Even if the price of refined oil continues to rise so much that many drivers can't stand it, the general direction of preferential policies for ethanol gasoline has not changed.
Take this year as an example. On January 7, 2005, following the Henan Provincial Development and Reform Commission, the retail price of ethanol gasoline was lower by 0.1 yuan per liter than the retail price of gasoline with the same label; the wholesale and retail system's batch-to-zero difference rate was 5.5% (when the wholesale price included the distribution process. The transportation and miscellaneous expenses occurred. The average non-distribution system's batch-to-zero difference rate is 7% on average (not including transportation and miscellaneous expenses, and Sinopec Henan Branch adopts a differential allowance based on the distance), and on this basis, it will continue to float RMB 50 per ton.
On March 22, 2005, following the Henan Development and Reform Commission, Henan’s ethanol gasoline continued to implement a policy of 0.1 yuan per litre lower than the retail price of the same label and a wholesale price of 50 yuan per ton.
Between June and July, the country raised the mid-90th price of gasoline by 200 yuan and 250 yuan per ton, and Henan ethanol gasoline was still preferential by 0.05 yuan per litre compared with the same grade of gasoline. The wholesale price still allowed profit of 50 yuan per ton.
Cost: the most pressing part The production cost is higher than regular gasoline and has always been the biggest obstacle to the development of fuel ethanol. In order to urge manufacturers to minimize costs and improve overall utilization, the state is also gradually reducing subsidies for production enterprises. In the early stage of the promotion of ethanol-gasoline, the state set a solid subsidy for fuel ethanol producers; since 2004, the country has changed to fixed-rate subsidies. Taking Henan Tianguan Group as an example, in 2004, Tianguan Group produced subsidies of 2,070 yuan per ton of fuel ethanol. This year, this subsidy has been reduced to 1,721 yuan per ton. From 2006 to 2008, the state held an agreement with Tianguan Group. The production subsidies for fuel ethanol will be reduced to 1,373 yuan/ton. In the future, reducing costs will require enterprises to further realize the expansion of cheap raw materials, increase the level of comprehensive utilization, and deep technical breakthroughs.
Energy Saving: It needs to be practiced again: “High fuel consumption, low power, swelling of individual parts of vehicles, and air resistance in the summer.†This is a reflection that the reporter heard after interviewing some drivers.
In this regard, Zhang Shizeng, senior technician of the Office of Ethanol Gasoline Promotion of Henan Province explained: “From the mechanism, the calorific value of fuel ethanol is lower than the calorific value of gasoline, and the ethanol value of ethanol gasoline is reduced by 3% due to the addition of 10% ethanol. The power performance is degraded, but the rich oxygen content of ethanol increases the oxygen content of gasoline by 3.5%. It fully burns the part of the original gasoline that cannot be completely burned, and improves the fuel combustion efficiency, resulting in a corresponding reduction in fuel consumption. If the balance is reached, the overall fuel consumption will be flat or slightly lower."
The perspective of production and production: Henan Province promotes ethanol gasoline
Henan Province was the earliest province in which ethanol gasoline was promoted. It has been four years since the pilot began. At present, the coverage of ethanol gasoline in the Henan market has reached more than 95%. However, how did the province solve the problem of ethanol gasoline production, technology, cost, price and market? The reporter recently conducted an interview.