Biological Diesel Oil Production Line of 4000 Thousand Tons/Year

Project Scale

The total investment of this project amounts to RMB 500 million, among which RMB 100 million is for fixed capital and RMB 400 million for the working capital. RMB 450 million foreign investment is needed for this project. It is planned to build a factory of 200mu in the high-tech industry park of Deshan Economy Developing Zone; it is also planned to build a biological diesel oil production line of 400 thousand tons/year and correspondent warehouses, and develop a special high-yield rape producing base of 4million mu. Sale income is RMB 4000million per annual.

Project Advantages

Changed is a superior industry zone of rape in China. The annual rape planting area is more than 3.5 million mu, and the total annual yield is more than 400 thousand tons. Changed is suitable for the growth of rape and has a great potential, planting area can increase to 4.5 million mu and the total annual yield can reach 540 thousand tons. The six neighboring cities or prefectures of Changde (in Hunan Province) can produce 300 thousand tons of rape per year; moreover, Jinzhou city, also a neighboring city of Changde in Hubei Province, can produce 500 thousand tons of rape annually.

Market Prospect and Economic Efficiency

In recent years, under the impact of bean oil and palm oil, the market of respessed oil is saturated and the rapeseed oil price is falling down. On the contrary, the diesel oil price is increasing because of the great demand and the soar of the petrol price in the international market. The petrol reserves are limited and one day they will be used up. However, rapeseed is inexhaustible to be transformed into biological diesel. It is profitable to transform rapeseed into biological diesel because of the simple production process and the low cost; it is also environment-friendly because there is no pollution. In fact, Germany has already set a successful example in this field: 2/3 rapeseeds in Germany are transformed into biological diesel. In China, after several years of research, Hunan Agricultural University has developed a mature technology for transforming rapeseed into biological diesel that can be applied to large-scale production at any time. After this project goes into operation, the sale income is RMB 4000 million per annual, the total cost is RMB 2900 million, the annual tax is RMB 900 million, the annual profit is RMB 200 million, the ration of profit is 40%, the investment recovery period is 2.5 years.

Cooperation Mode: Sole Foreign Investment or Joint Venture

Contact Unit: The Agriculture Bureau of Changde

Contact Person: Wang Jinhua

Tel: 0086-0736-2519898

Fax: 0086-0736-2519892