Biodiesel refers to a renewable diesel fuel made from oil crops, animal fats, food waste oil that can substitute petroleum diesel and has environmental protection, safety, renewability and other advantages.
During 2006-2013, global biodiesel output grew rapidly from 6.5 billion liters in 2006 to 24.6 billion liters in 2013, at a CAGR of 20.9%. There are little changes in the global distribution of biodiesel production, mainly concentrated in Europe, the United States, Argentina, Brazil, and so on. The world's ten largest producers contribute to nearly 75% of global production.
The development of biodiesel started late in China, serving as one of the industries vigorously supported by the government. China has released Renewable Energy Law and National Standard for Biodiesel (B5) Blend in 2005 and 2010, respectively. According to ResearchInChina, in 2013, China’s total capacity of biodiesel exceeded 3.7 million t/a, output attained 1-1.2 million t/a, indicating the capacity utilization was not high.
However, with the implementation of National Standard for Biodiesel (B5) Blend and the expansion of application range, it is estimated that China's new consumption of biodiesel during 2014-2017 will go beyond 2.5 million tons. Following the formal implementation of consumption tax at the biodiesel import links on January 1, 2014, coupled with other policies support as well as the optimism of enterprises about the biodiesel market, there are still many biodiesel projects proposed and under construction in China. As of the end of May 2014, major biodiesel projects proposed and under construction have boasted a combined capacity of over 2.7 million t/a.
Listed biodiesel companies include Ningbo Tech-Bank Co., Ltd, Jiangsu Yueda Investment Co., Ltd., Xinjiang International Industry Co., Ltd, etc., of which, Ningbo Tech-Bank, the controlling shareholder of Hunan Jindeyi Feed Oil Co., Ltd (with a capacity of 80 kt/a) saw equity capacity of 70 kt/a in 2013; Yueda Investment, the controlling shareholder of Jiangsu Kate New Energy Co., Ltd (with a capacity of 80 kt/a), reached equity capacity of 40 kt/a in 2013; Xinjiang International Industry has invested in the construction of a 60 kt/a biodiesel project in Xinjiang, and currently, the 30 kt/a phase I is under construction.