I Analysis of the Market Structure of Biodiesel
1. Market Environment Analysis
International market: In recent years, the world’s biofuel oil industry is developing rapidly. The United States, Canada, Brazil, Japan, 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 a wide range of application practices. In recent years, biodiesel, as a new industry, has been developing rapidly in Europe and the United States. European Union countries and the United States governments have provided high financial subsidies to support the cultivation of oil crops (the European Union is mainly oil-laid, the United States is mainly soybeans), giving tax incentives to the production of biodiesel, making the price of biodiesel comparable to that of petroleum diesel, competitive in the market, and strong momentum for industrial development. The production of biodiesel from vegetable oil as a substitute for petroleum fuels has aroused worldwide concern. Widespread attention has been paid by various countries. In Europe and North America, vegetable oil is used as raw material to produce biodiesel, while in Japan, waste edible oil is recycled to produce biodiesel.
Biodiesel has been used commercially in the United States since the early 1990s, but it has only really taken shape in the last two years. Biodiesel has become the fastest growing alternative fuel in the country. The energy policy law passed by the United States in 1992 stipulates that the vast majority of federal, state and public sector vehicle fleets must have a certain proportion of vehicles using alternative fuel. In the United States, biodiesel has undergone rigorous testing and has a good commercial application record. Biodiesel is mainly used by bus and truck carriers with centralized gas stations, and the federal government is the largest user of biodiesel. The United States has also established the National Biodiesel Commission to answer various questions about biodiesel.
Many countries in Europe pay more attention to biodiesel. Consumers can get tax breaks or economic subsidies from the consumption of biodiesel in order to improve the competitiveness of biodiesel, thereby promoting the reduction of air pollution and the reduction of oil imports. Biodiesel has been used in the field of buses in Germany, France, Italy and other countries. Germany is in the leading position in promotion, and has been applied to Mercedes-Benz, BMW, Volkswagen, Audi and other cars. There are more than 900 biodiesel stations in Germany that sell biodiesel blends, and stipulate that only B20 biodiesel blends are allowed to be sold on major traffic routes. Gas stations in France sell blended diesel with 5% biodiesel, while Austria uses 100% biodiesel in environmentally sensitive areas. The European Biodiesel Commission, which is composed of representative biodiesel producers, provides funds to the European Union to promote standardization of biodiesel specifications and related research.
It is reported that Japan consumes about 2 million tons of edible oil every year, while the discarded edible oil amounts to 400,000 tons, accounting for about 20%. The measures to promote the use of biodiesel in Japan include: (1) community buses using biodiesel as fuel; (2) some food distribution vehicles using biodiesel as fuel; (3) McDonald’s and KFC fast food restaurants using waste cooking oil to produce biodiesel. At present, Japan exempts pure biodiesel from waste edible oil.
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 with supercritical production technology. Fujian Excellent New Energy has also developed its own production process of biodiesel industry, and built a biodiesel plant with an annual capacity of 40-50,000 tons. According to the test by the Institute of Petrochemical Science, the product quality is superior to the national light diesel quality standard, and the production process is clean and safe. In addition, many companies such as Jiangsu Hengshunda Bioenergy Co., Ltd. and Jiangsu Caterpillar New Energy Co., Ltd. produce biodiesel, and biodiesel in China is in the stage of vigorous development.
Compared with foreign countries, China has a considerable gap in the development of biodiesel, which has been hovering in the primary research stage for a long time. Due to raw materials and production costs, industry orientation and national tax reduction and exemption policies, biodiesel products have not yet been fully industrialized. After China entered WTO, the government has not proposed a set of support, preferential treatment and encouragement for biodiesel. Policies and measures; formulate unified standards for biodiesel and implement industrialization development strategy. In the face of the dual pressures of rapid economic development and environmental protection, it is more urgent to speed up the industrialization process of biodiesel with high efficiency and cleanliness.
Therefore, we can see that biodiesel enterprises are facing both challenges and opportunities. Under the premise of policy orientation, they should pay more attention to reducing costs and improving the quality of their products.
- Analysis of Biodiesel Industry Chain
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, pharmaceutical enterprises, chemical enterprises and enterprises using fuel power in the downstream of the industrial chain.
Raw material supplier: At present, most domestic biodiesel enterprises use waste oil as the main raw material, so the main raw material suppliers are oil plants, ditch oil recovery enterprises, oil distributors and so on. About 80% of the cost of biodiesel comes from the cost of raw materials, which establishes the important position of raw material supply in the whole 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 grease equipment manufacturers, etc. At present, equipment suppliers are mainly environmental protection equipment manufacturers, as well as many biodiesel manufacturers in the vertical development of equipment production transformation.
Biodiesel producer: refers to the production enterprise that uses plant, animal fat oil and waste oil as raw materials and uses catalyst to produce biodiesel by esterification reaction. The middle reaches of the industrial chain are biodiesel production enterprises and the core of the whole industrial chain. Their competitiveness is directly related to the development of the whole industry. End Customer: That is, the final consumer of biodiesel products, mainly including gas stations, refineries, enterprises using fuel power and chemical enterprises. As a marketing channel downstream of the industrial chain, its smooth operation directly affects the development prospects of the whole biodiesel industry.
- Analysis of Advantages and Disadvantages of Biodiesel Industry
- Advantage analysis of biodiesel industry
Biodiesel is a new type of fuel, mainly composed of fatty acid methyl ester, which is made from biomass resources such as oil waste, waste cooking oil and animal fat. Its properties are very similar to those of petrochemical diesel, and it has the characteristics of cleanliness, environmental protection, sustainable resources and renewability. As an environmentally friendly renewable green energy source, biodiesel is a promising alternative fuel for petrochemical diesel. At present, it is the fourth largest fossil energy after coal, oil and gas, and has the potential of 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, feces and biodiesel converted from urban and rural organic wastes. The main driving forces for their development are as follows:
(1) Excellent product performance to promote industrial development
The new problem of diesel oil supply and demand balance is the focus of China’s oil market development for a long time in the future. Industry insiders pointed out that China’s diesel market demand will reach about 130 Mt by 2015. In recent years, although refining and chemical enterprises have continuously improved the production ratio of diesel to steam through continuous technological transformation, they still can not meet the requirements of consumption ratio of diesel to steam. With the acceleration of the western development process and the successive start of major basic projects in the national economy, the contradiction between the fuel-gas ratio is more prominent than before. The development of biodiesel is not only in line with the current direction of petrochemical industry to adjust the structure of oil products and improve the diesel-to-gasoline ratio, but also of far-reaching significance. Biodiesel has excellent environmental protection characteristics and good sulfur. The harmful gas discharged from biodiesel is about 70% less than that from petroleum diesel, and it can be degraded sufficiently, which is conducive to the protection of ecological environment. The development of biodiesel can not only meet the increasing demand for diesel oil, 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 accelerate industrial development
For a long time, the biodiesel industry has been facing the problems of shortage of raw materials, insufficient supply and limited sales channels. Domestic biodiesel production enterprises are generally small in scale, and it is difficult to obtain bargaining rights in the pricing of raw materials. In addition, the product quality is uneven, the production price is too high, and it is difficult to enter the gas stations of state-owned enterprises. These problems restrict the development of the biodiesel industry. At the end of 2014, the State Energy Administration issued the Biodiesel Industry Development Policy, which proposed to build a sustainable raw material supply system suitable for China’s resource characteristics, with waste oils as the main source and wood (herbal) non-edible oils as the supplement. The policy provides solutions and safeguards for the development planning, raw material guarantee, industrial layout, promotion and application of biodiesel industry. It lays a policy foundation for solving the problems faced by biodiesel industry in the past, such as inadequate raw material supply, Limited sales channels and difficult expansion of production scale. Under the impetus of industrial development policy, biodiesel industry will accelerate its development.
“Biodiesel Industry Development Policy” put forward “Encourage the use of biodiesel in key areas of atmospheric pollution prevention and control, such as Beijing, Tianjin, Hebei, Yangtze River Delta and Pearl River Delta; In the promotion area, wholesale oil products enterprises should sign purchase and sale contracts with biodiesel production enterprises that meet the access conditions in time and strictly implement them, in principle, the proportion of their total purchase and sale to the regional promotion objectives is no less than its. Market share”. This will solve the problem of Limited sales channels faced by biodiesel industry, and provide policy basis and feasible methods for biodiesel entering the blending market of refined oil. At the same time, the policy also proposes that “the State formulates and promulgates clear and definite long-term support policies such as price, tax, finance, investment, etc. In principle, relevant local supporting policies should be promulgated. The corresponding supporting policies are promulgated and refined, which will also bring momentum for the development of biodiesel enterprises.
(3) Upgrading Environmental Protection to Promote Industrial Development
On January 1, 2015, the new Environmental Protection Law was implemented, which is known as the most stringent environmental protection 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 will help solve the constraints of raw material supply and marketing channels faced by biodiesel industry in an all-round way. Economic policies and measures to encourage the development of environmental protection industry can further promote the development of biodiesel industry.
- Analysis of disadvantage of biodiesel industry
(1) The quality of products is uneven.
Biodiesel bio-manufacturers are numerous and small in scale, and their product quality is uneven. They are prone to fall into price war and neglect the product quality, which leads to vicious competition in the industry and affects the development of the industry.
(2) Limited sales channels
Biodiesel production enterprises are generally small in scale, the product quality is uneven, and there is no special organization to test the quality of biodiesel. As a result, gas stations dare not rush to introduce biodiesel. In addition, the high cost of biodiesel makes it impossible for biodiesel to enter the sales network of state-owned enterprises through reasonable channels. This has greatly restricted the sales market of biodiesel and 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 “ditch oil” and waste animal and vegetable oils. However, from the reality of the development of biodiesel industry in China, raw materials have become one of the main bottlenecks restricting its development. These waste oils and fats are distributed all over the country. The collection system is not perfect and the cost of collection and transportation is high. As a result, biodiesel production enterprises can only take raw materials locally, which leads to the shortage of raw materials for many biodiesel enterprises. The shortage of raw materials makes it difficult for biodiesel manufacturers to bargain with raw material suppliers. The high cost of biodiesel production further restricts the development of biodiesel industry.