US and China Increase Biofuels Cooperation

13 December 2007

The US Departments of Energy (DOE) and Agriculture (USDA) and China’s National Development and Reform Commission (NDRC) signed a Memorandum of Understanding (MoU) to cooperate in the development of biomass resources and biofuels.

The new MOU follows two bilateral agreements signed in September between DOE and China’s NDRC. The first MOU signed by DOE and China’s Ministry of Science and Technology aims to promote large-scale deployment of next-generation efficiency vehicle technologies in the US and China specifically focusing on electric, hybrid-electric, fuel cell, and alternative fuel technologies.

The second MOU signed in September by DOE and China’s NDRC aims to significantly increase cooperation and energy efficiency in China’s industrial sector, which accounts for 70% of the country’s total energy demand.

The biofuels MoU outlines the plans of the two countries to collaborate in biomass and feedstock production, conversion technology and engineering, bio-based product development and utilization standards, and rural and agricultural development strategies. The MOU also establishes a Joint Working Group to review the nations’ work on an annual basis.

Specific areas of cooperation included in this work plan may include, but are not limited to:

• Establishment of the methodology and index system for a biomass resource assessment suitable for conditions in both countries, and the formulation of a united assessment standard.

• Exchange of scientific and technical information on the development of biomass feedstock production (including breeding and planting technologies of quality feedstock seeds), feedstock-to-biofuels conversion processes; and cellulosic ethanol technology.

• Technical information exchange on biofuels and bio-chemicals.

• Strategic studies on promoting agricultural development for biomass feedstock on a voluntary basis.

• Exchange of technical information on the rural development aspects of biofuels development in China and the United States.

• Establishment of a bilateral dialogue on biofuels, focusing discussion on United States-China biofuels cooperation, capacity building, and information exchange.

The US is the largest consumer and producer of vehicles in the world. In 2006, China became second largest consumer of, and the third largest producer of, vehicles in the world. China currently has approximately 31 million passenger cars on the road and China is projected to have approximately 200 million passenger cars on the road in 20 years.

Resources

• Biofuels MoU