To explore the potential of growing energy crops and then producing liquid fuels in marginal land in China, in this paper, the status quo of existing biomass resources and marginal land utilization in China have been first analyzed and the development process of biomass liquid fuels has then been reviewed. Secondly, using ethyl levulinate (EL) as our research subject, the production capacity of growing energy crops in marginal land and their potential to prepare liquid fuels have been explored. Finally, the problems in developing marginal land have been summarized, and proposed policy recommendations for marginal land development, energy crop cultivation, and liquid fuel development suitable for Chinese conditions. The results showed that the potential of sweet sorghum, cassava, jatropha curcas, and switchgrass cultivation in China in producing is 75.76 million tonnes, 1.52 million tonnes, 4.57 million tonnes, and 5.16 million tonnes, respectively. Among these crops, sweet sorghum and switch grass have a higher production capacity and are more suitable to be planted on marginal land and used to produce liquid fuels. The planting of these two crops has absorbed about a 111.11 million tonnes and 7.57 million tonnes of carbon dioxide (CO2), respectively, presenting significant carbon sequestration and oxygen-producing effects, which provides a theoretical basis for the analysis of land use change.
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