Beijing already offers financial support to ethanol producers, but it has restricted production of the fuel because of concerns about food security.
Second-generation biofuels, such as those made from corn stalks and other discarded biomass, allay concerns over competition with food sources.
They could also give farmers a new source of income, says Novozymes vice-president Michael Fredskov Christiansen. Improving rural incomes has long been a priority for the Chinese government.
“There
