China's Tiger Ethanol to invest in sugar beet: claims farmers' income will see 60% boost
Tiger Ethanol International announced it has agreed with the local government to invest in sugar beet production in China's Fujian province, as a way to reduce its reliance on corn. The company is opting for a 'flex factory' model that can switch between producing fuel and sugar, depending on the market situation. It claims local farmers who will grow the new biofuel feedstock will see a boost of 60% in their farm incomes. Tiger Ethanol thinks sugar beet will result in increased ethanol production as compared to corn, while adding an additional source of income from refined sugar.
By the end of the implementation cycle of the plan, sugar beet will be growing on 300,000 acres (121,000 ha) of land to yield an estimated 1.5 million tons, there will be a capacity to produce 100,000 tons of ethanol and 100,000 tons of sugar.
The Chinese company has been experimenting with a range of biomass crops over the past months, concluding that using sugar beet to produce sugar and ethanol in Hami is not only a feasible solution for the production of ethanol, but can also bring substantial additional income to the company through the production of refined sugar. After pressing, the sugar beet juice is to be used for the production of ethanol and refined sugar, the remaining mass for the production of fertilizer.
On behalf of Xinjiang Yajia Distillate Company Limited, a joint venture 90% owned by Tiger Ethanol, CEO James Leung signed a Letter of Intent with the Hami government in Xiamen City of Fujian Province for the cultivation of sugar beet in the area. The result will be to secure the necessary mass of sugar beet. The local government has responded favorably and has committed to that effect in an agreement which was well received by the local media as to the impact on the local economy.
The District of Hami has more than 500,000 acres of farmland suitable for growing sugar beet. Because of favorable weather, this farmland can be switched from the single crop it is used for at present to a double crop. It was determined that barley could be grown and harvested from March to June, and sugar beet could then be grown and harvested from July to October.
This combination is said to be very favorable for the farmers, as the annual production yield would be about US$250 per acre, instead of the $150 they are now getting with a single crop such as cotton or corn. Historically, the Hami area has produced very little sugar beet as there has been a limited market for this crop.
The implementation plan is proposed as follows:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugar beet :: sugar :: Fujian :: China ::
Phase 1 (2008-2009):
Sugar prices in China have been very volatile over the past 15 years, the company adds (graph, click to enlarge). Coupling biofuel to sugar production allows for a 'flex factory' model as widely found in Brazil's sugarcane based sugar and ethanol sector.
Tiger Ethanol International is a development stage company which owns 90% of Xinjiang Yajia Distillate Company Limited, a Chinese entity which plans to construct a facility to produce ethanol in the People's Republic of China (the remaining 10% of Xinjiang Yajia Distillate Company Limited is owned by Xinjiang Wangye Brewing Co. Ltd. and Guangdong Kecheng Trading Co. Ltd.). The Company intends to produce ethanol from agricultural products.
References:
Tiger Ethanol International: Agreement Creates Availability of Alternative Biomass, Greatly Benefiting Local Farmers While Increasing Revenues for the Company - January 16, 2008
By the end of the implementation cycle of the plan, sugar beet will be growing on 300,000 acres (121,000 ha) of land to yield an estimated 1.5 million tons, there will be a capacity to produce 100,000 tons of ethanol and 100,000 tons of sugar.
The Chinese company has been experimenting with a range of biomass crops over the past months, concluding that using sugar beet to produce sugar and ethanol in Hami is not only a feasible solution for the production of ethanol, but can also bring substantial additional income to the company through the production of refined sugar. After pressing, the sugar beet juice is to be used for the production of ethanol and refined sugar, the remaining mass for the production of fertilizer.
On behalf of Xinjiang Yajia Distillate Company Limited, a joint venture 90% owned by Tiger Ethanol, CEO James Leung signed a Letter of Intent with the Hami government in Xiamen City of Fujian Province for the cultivation of sugar beet in the area. The result will be to secure the necessary mass of sugar beet. The local government has responded favorably and has committed to that effect in an agreement which was well received by the local media as to the impact on the local economy.
The District of Hami has more than 500,000 acres of farmland suitable for growing sugar beet. Because of favorable weather, this farmland can be switched from the single crop it is used for at present to a double crop. It was determined that barley could be grown and harvested from March to June, and sugar beet could then be grown and harvested from July to October.
This combination is said to be very favorable for the farmers, as the annual production yield would be about US$250 per acre, instead of the $150 they are now getting with a single crop such as cotton or corn. Historically, the Hami area has produced very little sugar beet as there has been a limited market for this crop.
The implementation plan is proposed as follows:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugar beet :: sugar :: Fujian :: China ::
Phase 1 (2008-2009):
- With the collaboration of the Hami government, the target is to utilize 100,000 acres (40,500ha) of farmland and reach an annual production of 500,000 tons of sugar beet in 2009.
- Build a sugar refinery with a yearly capacity of 500,000 tons of refined sugar adjoined to the existing ethanol plant. Construction will take one and a half years at a cost of $15 million. At the current sugar price, the ROI is projected to be 3 to 4 years.
- Expand the existing ethanol plant to 50,000 tons per year.
- Add another 100,000 acres of farmland and reach an annual production of 1 million tons of sugar beet in 2012.
- Expand the sugar plant to 75,000 tons and the ethanol plant to 75,000 tons
- Add another 100,000 acres of farmland and reach an annual production of 1.5 million tons of sugar beet by 2014.
- Expand the sugar plant to 100,000 tons and the ethanol plant to 100,000 tons.
Sugar prices in China have been very volatile over the past 15 years, the company adds (graph, click to enlarge). Coupling biofuel to sugar production allows for a 'flex factory' model as widely found in Brazil's sugarcane based sugar and ethanol sector.
Tiger Ethanol International is a development stage company which owns 90% of Xinjiang Yajia Distillate Company Limited, a Chinese entity which plans to construct a facility to produce ethanol in the People's Republic of China (the remaining 10% of Xinjiang Yajia Distillate Company Limited is owned by Xinjiang Wangye Brewing Co. Ltd. and Guangdong Kecheng Trading Co. Ltd.). The Company intends to produce ethanol from agricultural products.
References:
Tiger Ethanol International: Agreement Creates Availability of Alternative Biomass, Greatly Benefiting Local Farmers While Increasing Revenues for the Company - January 16, 2008
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