◆ The United Nations Environment Program (UNEP) is preparing to support BTL by issuing funding and preferable policies. Shao Xuemin, the chief representative of the UNEP has highly praised the positive impacts of BTL on environmental protection both in China and in the world generally.

◆ Mr. Han Yuqun, Governor of Shandong Province, personally led a governmental delegation in November 2005 to inspect the status and progress of BTL at Karlsruhe Research Center in Germany and has spoken highly of its benefits. He has committed to giving strong support to BTL research, development and realization in the Shandong Province.

◆“Regeneration Energy Law of the People’s Republic of China”, which came into effect on January 1, 2006, strongly supports the production and sales of Bio-SynFuel

◆China currently requires adding 10% ethanol to all gasoline in China. At present, China has a production capability of 1.02 million tons of ethanol for cars, and gives a subsidy of 1400 Euros per ton. Given these figures, we can be assured that diesel from straw will likely attain a similar, if not higher, subsidy as its economic benefits have obvious advantages over the use of ethanol.

◆“Implementation Opinion of Development Biology Energy and Biological Chemical Industry Finance and Taxation Support Policy" on September 30, 2006, issued by the Ministry of Finance, the National Development and Reform Committee, the Ministry of Agriculture, the National Tax Affairs Bureau and the National Forest Bureau. It has the following main aspects: Setting up a risk fund, subsidy on base of raw material as well as preferential tax policy. It supports renewable energy and related development.

◆On February 16, 2005 China agreed to fulfill "The Kyoto Protocol" of "the United Nations Climatic Change Frame Joint Pledge”. Because Bio-SynFuel displaces CO2-emissions and the index of CO2-Emission (CDM) will significantly decrease, cost savings can be achieved due to the rebates of the government departments..

◆Mr. Liu, Head of the Industry Dept. of National Development and Reform Committee, recently indicated that the Chinese government will implement a long-term and stable policy to support the Bio-SynFuel industry. The Ministry of Finance has printed and distributed a related informational brochure called the "Renewable Energy Development Special Tentative Fund Management Methodology".

◆The two bills "Biomass Fuel Ethanol and Vehicle Ethanol Gasoline in the 11th Five-Year Planning of Development Special Plan” and" Biomass Fuel Ethanol Industry Development Policy" have been agreed upon by the experts advising the National Development and Reform Committee. They have recommended that the National Development and Reform Committee quickly revise these two bills into policy law.