China plans ethanol plant in Cambodia.

AN official at Cambodia's Ministry of Agriculture, Forestry and Fisheries says China National Petroleum Corporation is looking to invest US 58 million dollars in an ethanol plant that would use cassava as its raw material to generate fuel.

CNPC is China's largest oil and gas producer and this project would be funded by a Chinese government loan.

The official told the Phnom Penh Post no decision has been taken as the factory would require 40 million to 50 million tonnes of cassava annually, about 15 times current domestic production.

Wishing to remain anonymous, the official says the project would require a huge amount of land, and with concessions a contentious issue, the ministry needs to confer with other ministries.

Cambodian law states that a land concession cannot be larger than 10,000 hectares.