Biodiesel is obtained from transesterification reactions with plant oil, animal fats or waste edible oil as the raw material, enjoying widespread applications in diesel transport vehicle, thermal power generation and industrial fuel industries. As a non-fossil fuel alternative to fossil diesel, biodiesel is a renewable clean energy, featuring zero toxicity, biodegradability, safety and environmental friendliness. With mounting environmental problems and energy crisis and rising oil prices, biodiesel has become a fresh focal point of the development of new energy across the globe, drawing intense attention from many countries around the world, including China. The development and commercialization of biodiesel technologies in developed countries have been experiencing a rapid growth. The EU plans to raise the production of biodiesel to 8-10 million tons per annum by 2010 so that biodiesel will account for 5.75% of the diesel oil market, and plans to increase the market share to 20% by 2020. The United States sold 50,000 tons of biodiesel in 2002 and 80,000 tons in 2003, up 400% from the 16,000 tons in 2001. The United States is striving for a production of 1.15 million tons of biodiesel by 2011 and 3.3 million tons of 2016. Canada, Brazil, Japan and some other countries are also in active development of biodiesel.

With accelerating economic development, China has become the world’s second largest energy consumer. In 1993, China became a net oil importer, with a 6.66% annual growth in oil imports. As a result of the soaring Chinese economy, China’s oil imports surged by 30% in 2004; its total oil consumption is projected to top 400 million tons by 2010, but the domestic production capacity stands just somewhere between 160 and 170 million tons; thus, there is an enormous demand for energy in the Chinese market. On February 28, 2005, China enacted the Renewable Energy Law, which officially took effect on January 1, 2006. The law encourages and supports the development of biodiesel as renewable alternative energy; thus, biodiesel is expected to experience robust development in China in the coming years. In Europe and North America, the use of a combination of biodiesel and fossil diesel has been a booming business; however, in China, the use is stills in its infancy, which means China Biodiesel, with its leading position in China, will enjoy enormous market and commercial prospects in China.