China's oil majors take lead in biofuels production

China’s major oil companies are competing for a leading position in the development of biofuels. China National Offshore Oil Corp. (CNOOC), the country’s third largest oil company, will strengthen its alternative energy development activities by establishing a biodiesel refining facility in Hainan province, in Southern China, by the end of the year. The refinery will produce 50,000 tons of biodiesel annually in its first phase using palm oil as feedstock. Meanwhile, PetroChina and its parent China National Petroleum Corp. (CNPC) will build two bioenergy model projects. One will be in Shandong, with an annual production capacity of 100,000 tons of biodiesel, and the other in Nanchong city, Sichuan province, with a capacity of 100,000 tons. Both are scheduled to start operations during the second half of this year. Sinopec is considering building a 100,000-ton-biodiesel refinery in Panzhihua city, Sichuan province, and has spent RMB18 million (US$2.3 million) in a biodiesel pilot project in Hebei province. (June 18, 2007)