The energy consumption standards of monosodium glutamate (MSG) and citric acid will be drafted in Nov. 2012 under the guidance of China Biotech Fermentation Industry Association (CBFIA), which shows Chinese government's determination on energy efficiency in fermentation industry, according to CCM’s October issue of Corn Products China News.
Some leading MSG and citric acid producers also participate in the draft of the two energy efficiency standards. Thereinto, Meihua Holdings Group Co., Ltd. (Meihua Group), Fufeng Group Co., Ltd., Ningxia EPPEN Bioengineering Stock Co., Ltd. and Linghua Group Incorporated Company are participants for standard draft of MSG and Weifang Ensign Industry Co., Ltd., RZBC Group and Yixing-union Biochemical Co., Ltd. will participate in that of citric acid. Both of the two standards will be accomplished in the middle of 2013, but it is not sure when the two standards will be put into force, revealed Miss Liu from CBFIA.
The energy efficiency standard of MSG will be applied to MSG producers with corn as feedstock and that of citric acid will be applied to citric acid producers with corn or tubers as feedstock. Both of the two standards will contain definition, requirement, calculation scope, method of energy efficiency limit etc. of the two products.
It is necessary for China to draw up the energy efficiency standards of MSG and citric acid under the requirement of energy efficiency in fermentation industry. MSG and citric acid are two main high energy-consumption products in fermentation industry and there is large room for them to cut down energy consumption because domestic energy consumption is higher than advanced overseas'. For example, domestic average unit comprehensive energy consumption of MSG is about 1.7tce/t while advanced overseas' one is about 1.5tce/t. Thereinto, domestic water, electricity and steam consumption of MSG is 85t/t, 800Kwh/t and 8t/t while those of advanced overseas' is just 30t/t, 600Kwh/t and 6t/t respectively.
As indicated in 12th Five-Year Plan for Industrial Energy Conservation (2011-2015) (the Plan), the target of average comprehensive energy consumption of fermentation products in 2015 shall be 820kgce/t, down 8.9% compared with that in 2010. Considering domestic government has launched 22 energy efficiency standards for 22 high energy-consumption industries such as synthetic ammonia, sodium hydroxide and yellow phosphorus, it is necessary for MSG and citric acid industries to have their own standards.
The two standards will eliminate some MSG and citric acid producers with high energy-consumption because the standards will help reach the energy efficiency target of the Plan. "About 70% of producers will meet the standards without strain, around 20% of producers can meet the standards if they make some technological transformation, and around 10% of producers will be eliminated or merged," said Miss Liu.
But big producers may be unwilling to emerge producers that can't meet the energy efficiency standards due to high cost of merger, such as Meihua Group. "Failure to meet the standards means that there is a big problem with the technology or facility of these producers and it will cost too much to conduct technological transformation. Besides, enlarging capacity doesn't mean increasing profit margin." said an insider from Meihua Group, "We would choose to set up a new production line rather than merge to-be-eliminated producers if we want to enlarge our capacity."
The two standards will force producers to try to decrease their energy consumption, reducing cost of citric acid and MSG and making the two products more competitive in international market.
Source: Corn Product China News 1210
http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html
Main content of Corn Product China News 1210:
Export volume of corn starch down 62.9% during Jan. 2012-Aug. 2012
Chinese corn products Imp. & Exp. analysis in Aug. 2012
Domestic market price corn oil declines in Oct. 2012
Market prices of four key amino acids in China keep stable in Oct. 2012
Longlive Bio-technology alters to enzymatic hydrolysis lignin project with capital for crystal maltitol project
Meihua Group's non-public issue of new stock approved
China's HFCS develops excessively in recent years
VB2 drags down the achievement of Guangji Pharmaceutical in H1 2012
Energy consumption standards of MSG and citric acid to drafted
Domestic market price of corn declines when new corn put into market
Thailand government starts to state reserve cassava
Domestic market price of potato starch to go up in Q4 2012
… …
Corn Products China News, a monthly publication issued by CCM on 20th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.
For more information about Corn Product China News, please contact us at econtact@cnchemicals.com.
About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com