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Bio-dynamic Group Announces Fuel Ethanol Production Plan On January 6, 2011, Bio-Dynamic Group Limited (or Bio-Dynamic Group) announced that the company and Shanghai Zhongwei Biochemistry Co., Ltd. (or Shanghai Zhongwei) entered into a non legally-binding framework agreement for establishing a joint venture engaged in the production and sales of cellulosic-based fuel ethanol made from kenaf. According with the framework agreement, the production facility with a production capacity of over 10,000t/a will be launched in 2011 upon completion of construction; the capacity will be expanded to 100,000t/a to 200,000t/a during 2012 and 2013 upon completion of construction. The registered capital of the joint venture will be about USD6,002,800 (equivalent to RMB40,000,000). Shanghai Zhongwei and Bio-dynamic Group will contribute certain intangible assets (including technology and expertise) into the joint venture on a 75:25 basis as registered capital of the joint venture. According to an employee of Bio-Dynamic Group, Miss Chan, Bio-Dynamic Group will provide needed facilities for fuel ethanol production as the company is already an edible-ethanol producer in Harbin City, Heilongjiang Province; meanwhile, Shanghai Zhongwei will offer the core technology of fuel ethanol production from kenaf. Currently, R&D stage has been completed but the project is still pending industrialization. Thus, whether the joint venture will be set is still up in the air. According to Industrial Biotechnologies China News February 2011 issue, published by CCM International Ltd., unlike most producers of cellulosic-based ethanol adopting straw as raw material, the joint venture will choose kenaf as raw material with several obvious strengths. On one hand, the arable area has been shrinking in China owing to environmental damages or land desertification; however, kenaf with high adaptability can grow on land not so fertile, highly guaranteeing the stable supply. On the other hand, the kenaf planting can also help better the soil conditions, facilitating environmental protection in the long run. Furthermore, the adoption of kenaf totally complies with the “non-grain ethanol� governmental policy promoted nationwide since 2007. If the quality can meet the national standards, the company would have no big concern about the sales, according to Miss Chan, anyway, the domestic demand for fuel ethanol is tremendous in the future. Notes: 1 Incorporated in the Cayman Islands with limited liability, Bio-Dynamic Group is a listed enterprise on the Hong Kong stock exchange market, who has an edible-ethanol production base with 60,000t/a capacity in Harbin City, Heilongjiang Province. 2 Shanghai Zhongwei is a Shanghai-based enterprise engaged in the researching, developing, Need more information or to purchase this report, please contact CCM at or on +86 20 37616606 manufacturing and investing all kinds of new vegetable colloid materials in the fields of food, medicine and fine chemistry. CCM’s Industrial Biotechnologies China News at

About Industrial Biotechnology China News Industrial Biotechnologies China News is a monthly e-publication published by CCM International Limited, which focuses on befouls, bio-products, bio-based chemicals, bio-materials and industrial biotechnology applications, and offers latest investment hotspots, new technology & product, company & market dynamics, and government regulations, aiming to facilitate your insight into China's industrial biotechnology. 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. Please visit for more information or contact CCM International, Ltd. Guangzhou CCM Information Science & Technology Co, Ltd. 17th Floor, Huihua Commercial & Trade Mansion No, 80 Xianlie Zhong Road, Guangzhou 510070, China

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Bio-dynamic Group Announces Fuel Ethanol Production Plan