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China aims for countrywide use of ethanol gasoline by 2020
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Report summary
On 13 September 2017, China released a document to roll out the use of ethanol in gasoline blending on a national scale by 2020. The new regulation is likely to have a 10% ethanol blend in the gasoline pool in the second largest car market in the world. The plan looks certainly challenging as 100% implementation of this plan would mean that China would need to triple the ethanol production capacity in the space of two years from its earlier capacity target or rely on imports. Also, this regulation has the potential to displace 280 kb/d of refinery gasoline from the demand pool thereby doubling China’s gasoline surplus by 2020.
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