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Friday, July 25, 2008
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China Approves Biodiesel Pilot Projects

CHINA - China's National Development and Reform Commission (NDRC) has given the go-ahead to three biodiesel pilot projects with a total capacity of 170,000 tonnes.

PetroChina's Nanchong refinery will build a 60,000 tonnes per year biodiesel plant in Sichuan province, Sinopec will build a 50,000 tonnes per year plant in Guizhou province, and CNOOC will build a 60,000 tonnes per year plant in Hainan province, according to the Oil and Gas Journal.

The three biodiesel plants will use jatropha oil as feedstock, however the commission has not revealed when the plants will be completed.

Eric Watkins in the Oil and Gas Journal says that in April, Gushan Environmental Energy Ltd., China's largest producer of biodiesel began construction of new biodiesel production plants at its Chongqing and Hunan sites.

Gushan expects both plants to begin production towards the end of the year and the Chongqing and Hunan plants are expected to add 60,000 tonnes—30,000 tonnes each—to Gushan's annual biodiesel production capacity.

Gushan currently operates four production facilities in Sichuan, Hebei, Fujian provinces and Beijing with a combined annual production capacity of 240,000 tonnes, the Journal says.

The company aims to increase its annual production capacity to 400,000 tonnes by the end of 2008 with the expansion or addition of production facilities in Beijing, Shanghai, Hunan, and Chongqing.

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