Biodiesel and ethanol are high on the radar of China's big oil companies. According to the People's Daily on Friday last week China's oil giants explore biofuels in their vision of the future...
China's oil giants...are making tentative moves into the green fuels sector. Earlier this month, China National Petroleum Corporation (CNPC), China's largest oil producer, signed an agreement with the Sichuan provincial government to develop bio-fuel in the southwestern basin famous for its agricultural industry and natural gas reserves.
They plan to produce 600,000 tons of automotive-grade ethanol made from sweet potatoes each year and 100,000 tons bio-diesel made from the seeds of jatropha curcas tree. CNPC has negotiated with four foreign companies on the introduction of the bio-diesel technology, the company said at its official website.
Is there a pattern here, with my earlier post today about Shell's biofuel bets. This points up the need for consolidation in the fuel ethanol and biodiesel sectors. If large companies like Shell and CNPC are actively involved then, providing they feel that they can make enough money from biofuels they will move in. It would be a mistake to think that big oil is made up of dinosaurs and biofuel players are
the smart mammals that will out evolve them. companies like Shell,BP, and ExxonMobil have not been around for over 100 years without changing.