CHINA Petroleum and Chemical Corp, one of the country's biggest energy firms, and Airbus yesterday announced they will jointly produce renewable aviation fuel for regular commercial use in China.

The Chinese company, also known as Sinopec, will produce the fuel with its own technology in a newly built refinery in Hangzhou, capital of east China's Zhejiang Province.

The refinery is one of the few in the world that has the capacity to produce aviation fuel from biomass on a large scale, Sinopec said.

"Sinopec has developed its own technology for producing aviation fuel from biomass and waste oil and has already produced aviation fuel meeting international standards," said Dai Houliang, senior vice president of Sinopec.

Airbus will offer Sinopec technical expertise gained in past certification processes with the European Union and US fuel standard bodies, the European aircraft maker said.

"Bio-fuels are a crucial part of the roadmap to meet the aviation sector's ambitious CO2 targets," said Laurence Barron, president of Airbus China. "We are privileged to be working with our Chinese partners to establish a domestic value chain which is 100 percent Chinese."

Airbus currently supports alternative fuel value chains in Australia, Latin America, Europe and the Middle East.