Shaanxi Province has started first-phase construction of a 300,000tpa biodiesel project in Ankang City. Shanghai Xinlian Investment Co. Ltd (Shanghai), the project’s sponsor, has established Ankang Zhongxin Biodiesel Co. Ltd to manage construction. Phase I will comprise 30,000tpa. According to pre-construction statistics, the project will produce main products and by-products equal to USD 400 million a year. The project has received full support from the Ankang municipal government, which sent its mayor’s assistant to research and sign an agreement with Shanghai Xinlian in July after fieldwork in a half dozen provinces. Ankang plans to grow oil plants over 20 billion sq/m to provide raw materials for the company. About 1 billion sq/m have been granted for the lacquer tree (wood oil tree) as the main plant. The factory will also use other materials, such as used cooking oil and animal fat. Besides the biodiesel project, Ankang and Shanghai Xinlian are also preparing a 300,000tpa bio-fuel alcohol project, but no further details are available yet.