(Yicai Global) May 18 -- The Shanghai unit of China Petroleum & Chemical Corp., one of the country's biggest oil producers and better known as Sinopec, has begun construction of a B5 biodiesel plant to ramp up production and pump biodiesel into 200 petrol stations across the city.
B5 is cut with 5 percent gutter oil from the catering industry or sewer lines and is intended to repurpose waste while reducing diesel consumption.
Once the new plant is up and running, the firm will be able to produce between 400,000 and 600,000 tons of B5 a year and use up all of Shanghai's gutter oil, state-owned news agency Xinhua reported.
China's largest city began piloting biodiesel petrol stations last October and it was available for sale at 33 stops as of the beginning of the month. Some 300,000 liters are sold every day and total sales have topped 23 million liters to date.
Editor: James Boynton