China will delay the nationwide rollout of E10, the gasoline blend containing 10% ethanol, because the country’s ethanol production capacity will not be able to meet demand and also due to lower corn stocks, Reuters reported.

Citing knowledgeable sources, the news agency said the decision has been announced by the National Development and Reform Commission (NDRC) at a meeting in late December.

In the autumn of 2017, the Chinese government announced a nationwide E10 mandate by 2020. Demand for ethanol as a result of this move was seen to reach up to 15 million tonnes per year.

At the end of 2017, China’s ethanol capacity was around 2.8 million tonnes. A year ago Reuters reported that plants capable of producing 6.6 million tonnes of ethanol were under construction or going through the approval process.

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