December 27, 2007

Cofco to invest on ethanol, food processing projects in Guangxi

China's Cofco Ltd. announced plans to invest as much as US$1.64 billion over five years in biofuels, food processing and property development in southern Guangxi province.

Cofco, China's biggest grain trader, said it would spend the money on projects including expansion of oilseed processing and cassava-based ethanol production.

China is currently encouraging companies to boost output of biofuels made from non-grain feedstock as it will cut reliance on oil while meeting food needs.

The world's second-largest energy consumer, the country aims to use ethanol and biodiesel to replace 10 million tonnes of petroleum-based fuels consumption per year, by 2020, according to the National Development and Reform Commission.