PetroChina Company, China’s largest oil and gas producer, has entered into a framework agreement with China’s State Forestry Administration (SFA) for the development of ethanol and biodiesel from forest products. The company officially kicked off the construction of the first batch of tree plantations in Yunnan and Sichuan, marking a substantial step forward in the cooperation of forest biofuel development between the two parties.
By the end of 2010, PetroChina plans to build an annual non-grain ethanol capacity of more than 2 million tons (667 million gallons US) which would make up more than 40% of the aggregate output of the country, establish an annual commercial production scale of 200,000 tons (60 million gallons US) of forest biodiesel and support the establishment of forest biofuel raw material bases of over 6 million mu (40,000 hectares).
PetroChina and the SFA will work together to cultivate and develop forest-derived biofuel resources, cooperate in the area of carbon sequestration, and try to accelerate the pace of “integration of forests and fuel.” The stated goal is to promote the forest biofuel industry of China and contribute to the country’s energy and ecological development as well as efforts to mitigate greenhouse effects as a whole.
PetroChina is also a founder of the China Green Carbon Foundation along with the SFA. The Foundation focuses on carbon sequestration through promotion of tree planting to enhance carbon fixation.
PetroChina has become the world’s seventh-largest integrated oil and gas company, pushing past both Chevron and Total, who tied at eighth place, according to Petroleum Intelligence Weekly.
Earlier this week, China National Offshore Oil Co. announced it would join palm oil producer PT SMART Tbk and Hong Kong Energy Ltd to invest $5.5 billion in Indonesia to develop crude palm oil-based biodiesel and sugarcane- or cassava-based bioethanol. (Earlier post.)