PetroChina to invest RMB300 million in forestry and biofuels projects

19th July 2007

By Clare Watson

Chinese oil giant PetroChina is reportedly planning to invest RMB300 million into a scheme to develop the production of biofuels, RMB200 million of which will be used to fund biofuels and forestry initiatives in the Chinese provinces of Sichuan, Yunnan and Hebei, Chinese publication The Standard has reported.
Citing Jia Zhibang, head of China's State Forestry Administration, The Standard also reported that PetroChina is planning to establish an investment fund with the forestry administration, which will be called the China Green Carbon Foundation. The remaining RMB100 million will be used to this end, The Standard said.

The regional business publication also cited Mr Zhibang as saying that PetroChina's initiative falls within China's ambitious biofuels plans, which involve planting 13.3 million hectares of forests by 2020 to fuel biomass plants with a capacity of 11,000MW. In addition, China hopes to use the trees to generate six million tonnes of biodiesel each year.

The industry is speculating that PetroChina's bio-development plans will prove financially beneficial to the company because of China's plans to invest RMB1.5 trillion until 2020 to reduce the region's reliance on traditional oil products.

However, according to The Standard, PetroChina was not available for comment.