The province will supply the feedstock from its Heilongjiang State Farm (HSF) providing a long term cover for TMO’s bio-fuel facilities.

Commenting on the MoU TMO chief executive officer David Weaver opined that the MoU will lead to the development of a series of second generation bio-fuel facilities in the country.

"Our network in China is growing and we look forward to announcing an offtake agreement for the ethanol produced, another key element that needs to be in place for the delivery of an operational plant in the province," said Weaver.

HSF 93 farm Director-general Mr. Zhang Guichun added, "Second generation ethanol production has been part of our strategy at the Heilongjiang State farm for some time and so we are excited to see the first step in the realisation of this strategy and eager to see the future plant start production as soon as possible."

In addition, TMO has teamed up with COFCO and CNOOC New Energy Investment to undertake joint testing programs for manufacture of ethanol from cassava residue and cassava stalks.