Bio diesel development has recently obtained momentum in China, with the issuance of State Standard of Bio Diesel Blending (B5), the operation of CNOOC's 60,000 tons per year bio diesel plant in Hainan Province in corporate with a planned exclusive B5 bio diesel application program throughout Hainan Province, and a policy of Consumption Tax Exemption of Bio Diesel Produced from Waste Animal and Plant Fat.

After a few years' heated investment, China's young bio diesel sector seems having fallen to a low ebb, compared to many other renewable energy, suffering from feedstock constraint, little technological breakthrough, rising costs and difficult oil retail market entries.

The above events do not seem happen coincidently. It has become evident that central government is to strengthen the control over the bio diesel sector and consolidate the industry through major state oil companies. After a few years of investment impulse, China's bio diesel development is still in an early stage of trial development. The stage is increasingly evidently led by major state oil companies. They have however not placed bio diesel at high priorities, if not in a sideline. With the impetus gained, bio diesel in China is moving a step forward. It will, however, likely advance rather slowly and cautiously for a near and mid terms, compared to many other renewable energy sources.
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