As Sam noted earlier today, China is putting the foot down on domestic coal-to-liquid energy projects. While generating energy from biomass sources is the one option China will consider moving forward, ethanol from grains will not be the biofuel of choice.
"The rapid development of grain-based ethanol biofuels has resulted in commodity price pressures in non-developed nations," the state-owned Beijing Youth Daily paper said, according to Forbes. The reason is that China's grains should be used to feed the people, not to make energy. Cellulosic ethanol is A-OK, though.

The Beijing Youth Daily says that domestic ethanol production in China was 1.54 million tons in 2006, 850,000 tons of that from corn.

[Source: Forbe]

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