On May 27, the representatives from Boeing and CNPC declared to sign an MOU for cooperation in evaluation of sustainable bio-fuel industry in China. It is the first strategic evaluation in China in which comprehensive assessment will be conducted on the environmental, social and economic benefits to be resulted from the development of sustainable substitute fuels.

The project will evaluate on each of the elements in the sustainable bio-fuel development for aviation, including agronomy, energy input & output, life-cycle emission, infrastructure and policy support from the government. This evaluation, as a part of a broader agreement signed between China National Bureau of Energy and the American Trade Development Agency on sustainable aviation bio-fuel development, is expected to commence from June 2010.

In addition, the R&D Department of Boeing and the Qingdao Research Institute of Bio-energy under the Chinese Academy of Sciences announced to sign a memorandum of understanding to expand their cooperative researches by setting up a joint laboratory for development of algae cultivation, harvesting and processing technologies. The lab will be located in Qingdao and jointly managed by the R&D Department of Boeing and the Qingdao Research Institute of Bio-energy.

An MOU was also signed by Air China, CNPC, Boeing and UOP under Honeywell, aiming to use the bio-fuel produced in China for trial flight, in which CNPC to supply biomass raw material to UOP for producing aviation fuel. The trial fight will be conducted in China in order to show the whole supply chain from seedling to fight. The details about the timing and location will be disclosed later.

(Source: China Securities Journal)