January 15, 2007

PetroChina enters agreement for forest biofuel development

Beijing, China – PetroChina Company Ltd., the country’s largest oil and gas producer, has announced that it has entered into a framework agreement with the State Forestry Administration (SFA) to develop forest biofuel. The companies officially kicked off the construction of the first tree breeding bases in Yunnan and Sichuan, marking a substantial step forward in the cooperation of forest biofuel development between the two parties.

Forest biofuel facilitates an improvement in peasant income and new rural construction, alleviates the emission of greenhouse gases, eases the shortage of energy supply and plays an important role in the sustainable development of society and economy, according to a press release issued by PetroChina.

PetroChina says that by the end of 2010, it plans to build an annual non-grain ethanol capacity of over 2 million tons, which would make up more than 40 per cent of the aggregate output of the country; it also seeks to establish an annual commercial production scale of 200 thousand tons of forest biodiesel.

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