HoSt, a European supplier of bioenergy systems, announced that it has entered into a joint venture with CPCEP Bio-Energy LLC. It also announced plans to construct the first biogas plant in China.

“The signing of these contracts represents another major milestone for HoSt in the bioenergy market. This new joint venture strengthens our global position,” said Marcel te Braak, director of HoSt, in a statement.

The biogas plant will be constructed in Huai’an, China, and will use rice straw to produce biogas, which will then be converted into compressed natural gas (CNG) to be used as renewable fuel.

“Anaerobic digestion and converting biogas to fuel is an important development for the future of China,” said Yunfeng Bai, CEO of CPCEP Group, in a statement.

The new plant is expected to be operational by the end of the year.