China Biodiesel, the AIM-listed Chinese firm which sources used cooking oils to produce biodiesel, has just posted much improved annual results; turnover has surged 51.1% to RBM105.3m (Chinese Yuan) for the year with pre-tax profit increasing to £38.8m from £28.2m the year before. Meanwhile their 2010 biodiesel production target has been set at 350,000 tonnes.

"Our focus going forward will continue to be on expanding production to meet demand, in China and abroad, whilst developing our technology and ensuring that the business is managed with maximum efficiency,” said the group.

Oil is a big part of Chinese cooking - and with 1.3 billion people, there's plenty left over nationwide after it's been tossed about in the family wok a few times. According to this concise article on biodiesel in China from late last year;

"In 2005, China manufactured 110,000–120,000 tons of biodiesel fuel; in 2006, production is expected to reach 1 million tons."

and the same article says that potentially, China could recover 2.25m tonnes of used cooking oil for biodiesel. It does appear though that bigger players - like state-owned China National Offshore Oil Corp and foreign investors are starting to move in. Can the likes of smaller independents such as China Biodiesel plc continue to play a growing role against such behemoths?

What is clear is that the recent rise in food prices caused by rising biofuel targets around the world has been deeply unpopular. In China, with it's hundreds of millions of rural poor, this is potentially a much greater problem. That's why many would find it hard to disagree that the biodiesel foodstock of choice in China will be used cooking oils for at least the next few years - environmental pros aside, it is after all the cheapest feedstock.