Novozymes has signed a deal with China Petroleum & Chemical, known as Sinopec, and Cofco to build China's biggest demonstration plant for cellulosic ethanol production. The plant is expected to produce 3 million gallons of bioethanol annually when it becomes operational in the second half of 2011. The facility could use "rice straw, wheat straw or any kind of cellulosic material," said Poul Ruben Andersen of Novozymes.

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