Following rigorous tendering, evaluation and testing process, NTLA has selected China New Energy as its development partner as part of a multi-phase contract with the phase one being the two-year contract worth CNY10m (£1m).
The phase one of the 50,000 tonnes per year biorefinery project calls for the design and supply of key technologies in the cellulosic ethanol production process, with commencement set for early 2014.
NTLA is likely to issue contracts for the phase two of the project in the second quarter of 2014 for which China New Energy will also tender.
The biofuel industry has so far relied on first generation technology, which uses food feedstocks such as corn, sugarcane and cassava for ethanol production.
The industry is now believed to focus in the future on the commercialisation of second generation technology which converts cellulosic material, or non-food feedstocks into ethanol.
According to the company, first generation biorefineries will continue to be developed in areas such as South East Asia and Africa, while second generation biorefineries are expected to be built in developed nations including China, Brazil, Europe and the US.
China New Energy chairman Yu said the company has invested significant time and resources in the development of the second generation biorefinery technology and has won this contract in China.
"In a global context, this is the first commercial scale Second Generation biorefinery to be constructed in China and I believe it is second only to Dupont’s second generation biorefinery that is under construction in Iowa.
"We expect this will become a high profile reference project that will help us tender for significant international business," added Yu.
