Industrial Biotechnologies China News is a monthly e-publication published by CCM International Limited, which focuses on befouls, bio-products, bio-based chemicals, bio-materials and industrial biotechnology applications, and offers latest investment hotspots, new technology & product, company & market dynamics, and government regulations, aiming to facilitate your insight into China's industrial biotechnology.

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Bio-dynamic Group Announces Fuel Ethanol Production Plan
On January 6, 2011, Bio-Dynamic Group Limited (or Bio-Dynamic Group) announced that the
company and Shanghai Zhongwei Biochemistry Co., Ltd. (or Shanghai Zhongwei) entered into a
non legally-binding framework agreement for establishing a joint venture engaged in the
production and sales of cellulosic-based fuel ethanol made from kenaf.
According with the framework agreement, the production facility with a production capacity of
over 10,000t/a will be launched in 2011 upon completion of construction; the capacity will be
expanded to 100,000t/a to 200,000t/a during 2012 and 2013 upon completion of construction.
The registered capital of the joint venture will be about USD6,002,800 (equivalent to
RMB40,000,000). Shanghai Zhongwei and Bio-dynamic Group will contribute certain intangible
assets (including technology and expertise) into the joint venture on a 75:25 basis as registered
capital of the joint venture.
According to an employee of Bio-Dynamic Group, Miss Chan, Bio-Dynamic Group will provide
needed facilities for fuel ethanol production as the company is already an edible-ethanol
producer in Harbin City, Heilongjiang Province; meanwhile, Shanghai Zhongwei will offer the
core technology of fuel ethanol production from kenaf. Currently, R&D stage has been
completed but the project is still pending industrialization. Thus, whether the joint venture will
be set is still up in the air.
According to Industrial Biotechnologies China News February 2011 issue, published by CCM
International Ltd., unlike most producers of cellulosic-based ethanol adopting straw as raw
material, the joint venture will choose kenaf as raw material with several obvious strengths.
On one hand, the arable area has been shrinking in China owing to environmental damages or
land desertification; however, kenaf with high adaptability can grow on land not so fertile, highly
guaranteeing the stable supply. On the other hand, the kenaf planting can also help better the soil
conditions, facilitating environmental protection in the long run. Furthermore, the adoption of
kenaf totally complies with the “non-grain ethanol” governmental policy promoted nationwide
since 2007. If the quality can meet the national standards, the company would have no big
concern about the sales, according to Miss Chan, anyway, the domestic demand for fuel ethanol
is tremendous in the future.
Notes:
1 Incorporated in the Cayman Islands with limited liability, Bio-Dynamic Group is a listed
enterprise on the Hong Kong stock exchange market, who has an edible-ethanol production base
with 60,000t/a capacity in Harbin City, Heilongjiang Province.
2 Shanghai Zhongwei is a Shanghai-based enterprise engaged in the researching, developing,
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About Industrial Biotechnology China News
Industrial Biotechnologies China News is a monthly e-publication published by CCM
International Limited, which focuses on befouls, bio-products, bio-based chemicals,
bio-materials and industrial biotechnology applications, and offers latest investment hotspots,
new technology & product, company & market dynamics, and government regulations, aiming to
facilitate your insight into China's industrial biotechnology.
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