Bioethanol in China
Due to an increased focus on green solutions in China and an aim to build 500 bioethanol plants before 2020, DONG Energy has decided to explore the market potential for the company's second-generation bioethanol in China.
In cooperation with the Danish Climate Investment Fund, DONG Energy has established a company that will market the bio-based Inbicon technology in China, participate in the establishment of bioethanol plants and provide service.
The Inbicon technology, which is developed in Denmark, is based on the transformation of straw and stems from e.g. grain and sugar canes to bioethanol, which e.g. can be used as fuel for cars. In order to utilize the technology, DONG Energy needs access to raw materials and investors who are interested in financing the establishment of bioethanol plants.
- The Danish Climate Investment Fund will act as a consultant and co-owner of our office in Beijing, which will market the Inbicon technology, says Henrik Maimann, Vice President of DONG Energy.
Each plant will be established as a joint venture with Chinese investors who have acquired an Inbicon license. The Danish Climate Investment Fund will on a case by case basis decide whether or not to invest in the plants. DONG Energy has announced that the company will invest licensing income in the first facilities in order to contribute to a faster rollout of bioethanol plants in China.
The Danish Climate Investment Fund, which is managed by IFU, contributes to the investment with DKK 12.3m in share capital.