Honeywell UOP teams with China's top oil firm in biofuels project

Honeywell unit UOP is to partner with state-owned China National Petroleum Corp(CNPC), the country's largest oil and gas producer, to develop biofuels for road transport and aviation.

Under an agreement announced yesterday, the two companies will collaborate to produce biodiesel and green jet fuel using feedstocks available in China.

CNPC will also look at establishing a demonstration-scale facility for producing biodiesel using UOP technology, in addition to a larger-scale unit at an existing or new CNPC refinery site.

The companies said that the initiatives are aimed at helping CNPC to meet its renewable energy targets. In 2006, the oil firm signed framework agreements with China's State Forestry Administration and the provincial governments of Sichuan, Yunnan and Shandong to jointly develop biomass energy sources, biodiesel and ethanol biofuel using non-grain crops, such as jatropha, sweet potatoes and barbados nuts.

"This collaboration will advance the development of viable renewable fuels for the transport sector in China," said UOP renewable energy and chemicals general manager Jennifer Holmgren.

China has set a target to ensure biofuels make up 15 per cent of all transportation fuels by 2020. However, some analysts have warned that the target may be unattainable as increased demand for existing first-generation biofuels would impact food supplies.

UOP has emerged as a major player in the race to develop more sustainable second-generation biofuels made from non-food crops. Last month, the company announced that it would produce renewable jet fuel for the US Navy and Air Force using non-food feedstocks such as animal fats, algae and camelina oil.