China Petrochemical Corp., or Sinopec Group, is going ahead with a plan to produce jet fuel from cooking oil, the local Economic Observer reported Saturday, citing unnamed sources.

Sinopec, which accounts for 73% of China's jet fuel production, is preparing to evaluate a test flight for the biofuel as early as January.

Zhejiang-based Zhenhai Refining & Chemical Co., a subsidiary, has an annual production capacity of 20,000 metric tons of biofuel--mostly from cooking oil, the newspaper said.

Making jet fuel from biofuel is expensive and requires an extensive supply of cooking oil from major chains such as McDonald's Corp. (MCD) and KFC Ltd., and Sinopec is in talks with McDonald's for cooking-oil supply, the paper said.

Airlines are trying to use biofuel as a way to cut emissions and reduce reliance on jet fuel.

Air China Ltd. (0753.HK) used 15 metric tons of biofuel made from jatropha by China National Petroleum Corp. in a test flight in October.