CNOOC to begin construction of biodiesel plant

China National Offshore Oil Corp. (CNOOC), China’s third largest oil company, will begin construction of a biodiesel plant in southern China’s Hainan province in August, said Wang Jiaji, an official from Hainan Provincial Forestry Bureau. “The production facility will be built in Dongfang City, which is also where CNOOC’s petrochemical base [in Hainan] is located,” he said. The construction of the production facility is to be completed by the end of 2009. It will produce 60,000 tons. According to Wang, 350,000 mu (23,333 hectares) of jatropha is needed to support the Hainan project. “The Ministry of Finance will give 200 yuan (US$29.11) in subsidies to local farmers for each mu (0.06 hectare) of jatropha they plant,” Wang said. He added that a further advantage is that jatropha can be planted in mountainous regions, though planting costs would be higher. Wang said jatropha trees is expected to bear fruit on the second year after planting, and will peak on the fourth or fifth year. (July 28, 2008)<BR>