CNPC in talks to acquire stake in ethanol producer

China National Petroleum Corp. (CNPC), the nation’s biggest oil producer, and BP Plc are among the companies that are in talks with Guangxi Xintiande Energy Co. about buying a stake in the southern China ethanol producer. Xintiande runs southern China’s largest ethanol plant, he said. The plant can produce 100,000 tons of the fuel from cassava annually.  China is encouraging fuel ethanol production from non-grain crops such as cassava to ensure domestic grain supply. The talks include setting up joint ventures to tap China’s growing renewable energy market, Chen Ling, deputy general manager of Guangxi Tiansheng Port Co., which shares the same parent company as Xintiande, said. China plans to double fuel ethanol consumption to 10 million tons within 10 years, until 2020. The plant can produce 100,000 tons of the fuel from cassava annually. (March 15, 2007)