China has already become the second largest petroleum consumer in the world. Therefore, the energy problem has become an important factor of affecting the China’s goal of creating sustainable development and harmonious environment. According to the experts, the second-generation ethanol has entered into the commercial stage, which can provide an opportunity for China to solve the energy problem. What’s more, a new industry which can create large market value can also be brought about.Novozymes in Denmark is the largest manufacturer of industrial enzyme preparation and microbial agent in the world. The CEO of Novozymes has signed a contract with the relevant sectors of China to start the experiment of producing second-generation ethanol by using crop straws. According to the contract, the China side will set up a plant in 2011 to produce ethanol with maize straw as raw materials, and Novozymes will provide the enzyme preparation for the plant. It is expected that the commercial production can be started before 2013. The cooperation can greatly accelerate the enforcement of new energy strategy and sustainable development for China.The increasing petroleum demand and limited petroleum resource force China to look for the alternate energy to meet the actual needs. Among all the kinds of alternate energy, ethanol gasoline has attracted more and more attention with the unique features of energy conservation, low discharge and abundant resource. The first-generation ethanol was made of crops, which has been abandoned because of the increasing crop price. The second-generation ethanol can be produced with maize straw and non-edible plants as raw materials. Various advantages have been shown, such as low production cost and low energy consumption. At the same time, the air pollution can be alleviated.The experts agree that, the market potential for the second-generation ethanol is very large. The second-generation ethanol can accelerate the diversification of energy for China and reduce the reliance on foreign energy. According to the research of McKinsey, the new generation ethanol can take the place of 31 million tons of petroleum in China by 2020. A new industry can be greatly formed. What’s more, 6 million job opportunities can be provided. The balanced development between the city and the countryside can be accelerated. It is estimated that the cost of the second-generation ethanol can be rapidly close to or less than the market price of petroleum. At the same time, the government should greatly support the experiment and provide moderate subsidy for the newly-formed industry.