China National Offshore Oil Corp (CNOOC), the third biggest oil company in the Mainland, plans to build a 2.4 billion yuan (300 million US dollars) biodiesel plant in Sichuan province, The Standard reported. Its CNOOC Oil Base Group unit has signed an agreement with the government of Panzhihua city to develop a plant designed to produce 100,000 tonnes of biodiesel a year by 2010, said the paper. China National Offshore may develop alternative fuels to replace crude oil and natural gas, president Fu Chengyu said in March. China wants sources such as sunlight, wind and water to account for 16 percent of energy supply by 2020. The Sichuan project will use Barbados nuts planted locally as the feedstock for producing biodiesel, the association said. The nut's nonedible seeds have an oil content of about 40 percent.