US-based Honeywell subsidiary UOP LLC and CNPC have signed a memorandum of understanding to jointly develop bio-fuel in China, UOP LLC announced on Thursday.

The two sides will jointly develop transportation fuels, clean diesel and renewable jet fuel through utilizing corn stalks and feedstuff derived livestock.

CNPC, China's largest oil firm, is not a newcomer to the bio-fuel field. It operates a 600,000-ton/year ethanol fuel project in Jilin and has also signed a framework agreement with Yunnan, Sichuan and Shandong provinces to develop bio-fuels.

Sinopec and CNOOC, the other two state-run oil firms, are also seeking opportunities to squeeze into the biofuel field.

Sinopec has built a bio-diesel production plant with capacity of 100,000 tons in Panzhihua city, Sichuan province. It has also invested 18 million yuan in building facilities with a production capacity of 2,000 tons of bio-diesel in Hebei province.

Last week [November 3] CNOOC announced that it will register an energy company in Tianjin Binhai New Area for investing 5 billion yuan in building 20 dynamic battery production lines.

Honeywell is a US-based company providing technologies on environmental protection.

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