Structure , advantages and disadvantages of Biodiesel Marke

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23-17

Part 1 : Structure analysis of Biodiesel Market

1, Market environment analysis

International market: In recent years, the world’s biofuel oil industry is developing rapidly. The United States, Canada, Brazil, Japan, South Korea, Australia, India and other countries are actively developing this industry. In the United States and European countries, biodiesel has been approved as an alternative fuel and has been widely used in practice. In recent years, biodiesel has been developing rapidly in Europe and America as a new industry. The European Union countries and the United States governments have offered high financial subsidies to support the cultivation of oil crops (mainly Oilseeds in the European Union and soybeans in the United States), and tax incentives have been given to the production of biodiesel, which makes the price of biodiesel comparable to that of petroleum diesel, competitive in the market and has a strong Industrial Development momentum. As a substitute for petroleum fuels, it has attracted worldwide attention. In Europe and North America, biodiesel is produced mainly from vegetable oil, while in Japan, biodiesel is produced by recycling waste cooking oil.

Biodiesel has been commercially available in the United States since the early 1990s, but it has only taken shape in the last two years and has become the fastest growing alternative fuel in the country. The Energy Policy Act passed in 1992 stipulates that the vast majority of federal, state and public sector automotive teams must have a certain proportion of vehicles using alternative fuel. In the United States, biodiesel has been tested strictly and has good commercial application records. Biodiesel is mainly used by bus and truck transport companies with centralized gas stations, and the federal government is the largest user of biodiesel. The United States has also set up a national biodiesel commission to answer questions about biodiesel.

Many European countries attach great importance to biodiesel. Consumers can get tax breaks or economic subsidies from consuming biodiesel in order to improve its competitiveness, thereby promoting the reduction of air pollution and the reduction of oil imports. Biodiesel has been used in buses in Germany, France and Italy. Germany is in the leading position in the promotion of efforts, has been applied to Mercedes-Benz, BMW, Volkswagen, Audi and other cars; Germany now has more than 900 biodiesel stations to sell mixed fuel oil with biodiesel, and stipulates that only B20 biodiesel mixed fuel oil can be sold on major roads. French gas stations sell blended diesel fueled with 5% biodiesel, while Austria uses 100% biodiesel in environmentally sensitive areas. The European Commission on Biodiesel, which is composed of representative biodiesel producers, provides funding to the European Union to promote standardization of biodiesel specifications and related research.

According to reports, Japan consumes about 2 million tons of edible oil annually, while the amount of waste edible oil reaches 400,000 tons, accounting for about 20%. The measures adopted by Japan for the use of biodiesel include: (1) the introduction of community buses using biodiesel as fuel; (2) the use of biodiesel as fuel in some food distribution vehicles; (3) the use of biodiesel in McDonald’s and KFC fast-food restaurants to produce biodiesel from waste cooking oil. At present, Japan adopts a tax exemption policy for the pure biodiesel that uses waste cooking oil as raw material.

Domestic market: Since the eighth five-year plan, China has carried out the research and development of biodiesel technology. At present, many domestic companies actively develop new biodiesel production technology in order to adapt to the development of the market. CNOOC New Energy (Hainan) Bioenergy Chemical Co., Ltd. can produce 60,000 tons per year by adopting supercritical production technology. Fujian Excellent New Energy has also developed its own biodiesel industrial production process and built a biodiesel plant with a capacity of 40-50,000 tons per year. The quality of the product is superior to the national light diesel oil quality standard, and the production process is clean and safe. In addition, many companies, such as Jiangsu Hengshunda Bioenergy Co., Ltd. and Jiangsu Carter New Energy Co., Ltd. produce biodiesel. The biodiesel in China is in the stage of vigorous development.

Compared with foreign countries, China has a considerable gap in the development of biodiesel, lingering in the primary research stage for a long time. Due to raw materials and production costs, industrial orientation and national tax relief policies, biodiesel products have not yet been fully industrialized; China has entered the WTO, the government has not targeted health. Biodiesel has put forward a set of policies and methods of fostering, preferential treatment and encouragement, and has formulated unified standards for biodiesel and implemented industrialization development strategy. Facing the double pressure of rapid economic development and environmental protection, it is more urgent to speed up the industrialization process of high efficiency and clean biodiesel.

Therefore, we can see that biodiesel enterprises are facing both challenges and opportunities. On the premise of policy-oriented, we should pay more attention to reducing costs and improving the quality of their products.

2, Biodiesel industry chain analysis

The industrial chain of renewable energy industry generally includes the upstream, middle and downstream of the industrial chain. Taking the typical biodiesel industry of biomass energy as an example, there are raw material suppliers and equipment suppliers in the upstream of the industrial chain, biodiesel production enterprises in the middle of the industrial chain, and gas stations, refineries and pharmaceutical enterprises in the downstream of the industrial chain. Chemical enterprises and fuel powered enterprises.

Raw material supplier: At present, most domestic biodiesel enterprises use waste oil as the main raw material, so the main raw material supplier is oil factory, ditch oil recovery enterprise, oil distributor and so on. About 80% of the cost of biodiesel comes from the cost of raw materials, which establishes the importance of raw material supply in the entire industrial chain.

Equipment supplier: refers to the supplier of complete sets of equipment for biodiesel production, mainly domestic and foreign complete sets of equipment suppliers, domestic oil equipment manufacturers. At present, the equipment suppliers are mainly environmental protection equipment manufacturers, as well as many biodiesel manufacturers vertical development to equipment production transformation.

Biodiesel producer: refers to the plant, animal fat oil, waste oil as raw materials, catalyzed by esterification reaction to produce biodiesel production enterprises. The middle reaches of the industrial chain are the biodiesel production enterprises and the core of the whole industrial chain. Their competitiveness is directly related to the development of the whole industry. End customers: that is, the final consumers of biodiesel products, mainly gas stations, refineries, enterprises using fuel power and chemical enterprises. As the sales channel downstream of the industrial chain, its unblocked is directly related to the development prospects of the whole biodiesel industry.

Part 2 .  Analysis of the advantages and disadvantages of biodiesel industry

1, Biodiesel industry advantages analysis

Biodiesel is a new type of fuel which is mainly made of fatty acid methyl ester from biomass resources such as oil waste, waste cooking oil and animal fat. Its properties are very similar to petrochemical diesel, and it has the characteristics of clean, environmental protection, sustainable and renewable resources. Biodiesel, as a renewable green energy, is a promising alternative fuel for petrochemical diesel. At present, it is the fourth largest energy after coal, oil and gas, which is the main fossil energy. It has the potential for large-scale development of renewable energy. At present, many countries in the world are vigorously developing and utilizing new energy fuels, such as natural plants, manure and biodiesel converted from urban and rural organic waste.

(1) good product performance to promote industrial development.

The new balance between supply and demand of diesel is a new focus of China’s long term oil market development. Insiders pointed out that China’s diesel market demand will reach about 130Mt by 2015. In recent years, although refining and chemical enterprises through continuous technological transformation, the production of diesel to steam ratio continuously improved, but still can not meet the requirements of consumption of diesel to steam ratio. With the acceleration of the development of the western region and the start of major basic projects of the national economy, the contradiction between diesel and steam ratio is more prominent than ever before. The development of biodiesel not only coincides with the direction of adjusting the structure of petroleum products to improve the diesel-steam ratio, but also has far-reaching significance. Biodiesel has excellent environmental protection characteristics, good sulfur, the emission of harmful gases than petroleum diesel oil reduced by about 70%, and can be fully degraded, conducive to the protection of the ecological environment. The development of biodiesel can not only meet the increasing demand for diesel fuel, but also meet the increasingly stringent environmental protection requirements. Biodiesel has important strategic significance in improving the deteriorating environment, improving energy efficiency, developing renewable resources and adjusting industrial structure.

(2) industrial policy support to speed up industrial development.

For a long time, the biodiesel industry has been faced with the problems of shortage of raw materials, insufficient supply and limited distribution channels. The domestic biodiesel production enterprises are generally small in scale, and it is difficult to obtain bargaining power in the pricing of raw materials. In addition, the product quality is uneven and the production price is too high to enter the gas stations of state-owned enterprises. Some problems restrict the development of biodiesel industry. At the end of 2014, the State Energy Administration issued the “Biodiesel Industry Development Policy”, proposing to build a sustainable raw material supply system suitable for the characteristics of China’s resources, mainly waste oil, supplemented by wood (herbal) non-edible oils. The policy has solved and guaranteed a series of problems in the development planning, raw material guarantee, industrial layout, promotion and application of biodiesel industry. It lays a policy foundation for solving the problems of insufficient supply of raw materials, Limited sales channels and difficult expansion of production scale. Under the promotion of industrial development policy, the biodiesel industry will accelerate its development.

 

“Biodiesel Industry Development Policy” proposed that “Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta and other key areas of air pollution prevention and control to promote the use of biodiesel; in the promotion area, wholesale oil products business enterprises should timely and qualified biodiesel production enterprises to sign purchase and sell contracts and strictly implement, in principle, its purchase The proportion of total sales to regional promotion targets is no less than its market share “. This will solve the problem of limited marketing channels faced by the biodiesel industry, and provide a policy basis and feasible method for biodiesel to enter the blending market of refined oil. The policy also puts forward that “the State formulates and promulgates clear and definite long-term support policies such as price, tax, finance and investment. Relevant areas should, in principle, introduce relevant supporting policies. The corresponding support policy is promulgated and refined, and will also bring impetus to the development of biodiesel enterprises.

(3) upgrading environmental protection and promoting industrial development

The new environmental protection law was introduced in January 1, 2015, which is called the most stringent environmental law in history. The new environmental protection law puts forward “promoting the production and use of clean energy” and “encouraging the development of environmental protection industry”. So far, there have been many overlaps and policies to support the development of clean energy. Promoting the production and use of clean energy is conducive to resolving the constraints of raw material supply and marketing channels faced by the biodiesel industry in an all-round way. Economic policies and measures to encourage the development of environmental protection industries can further promote the development of the biodiesel industry.

  1. Analysis of the disadvantages of biodiesel industry

(1) the quality of products is uneven.

Biodiesel producers are numerous and small in scale, the quality of products is uneven, manufacturers are easy to fall into price war and ignore the quality of products, resulting in vicious competition in the industry, affecting the development of the industry.

(2) Limited sales channels

Biodiesel production enterprises are generally small in scale, the quality of products is uneven, and there is no special body to test the quality of biodiesel, leading to gas stations dare not rush to introduce biodiesel, coupled with the high cost of biodiesel, biodiesel has always been unable to enter the state-owned enterprise sales network through a reasonable channel. This has greatly restricted the marketing market of biodiesel and has become an important factor restricting the development of biodiesel industry.

(3) Limited supply of raw materials

At present, the main raw materials for biodiesel production in China are waste oil and waste animal and vegetable oils. However, from the reality of China’s biodiesel industry development, raw materials have become one of the main bottlenecks restricting its development. These waste oils are distributed all over the country, the collection system is not perfect, collection and transportation costs are high, making biodiesel production enterprises can only take local materials, resulting in many biodiesel enterprises are facing the problem of shortage of raw materials. The shortage of raw materials makes it difficult for biodiesel manufacturers to bargain with the suppliers of raw materials. The high cost of biodiesel production further restricts the development of biodiesel industry.

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