China's top oil company has taken over a major ethanol maker as it tries to expand in the renewable energy sector.

China National Petroleum Corp (CNPC) has signed a deal with Tianguan Group, based in Henan Province, to invest in the ethanol producer, Tianguan said yesterday.

Tianguan did not disclose the size of CNPC's stake. But according to China Business News, CNPC has taken a 55 percent share of Tianguan to become the controlling stakeholder.

"To further expand the production capacity of ethanol based on non-grain raw materials, large investments are needed. That's why CNPC's investment is important for Tianguan," an anonymous Tianguan source said.

Han Xiaoping, a senior analyst at energy website China5e.com, agreed.

"Producing ethanol from non-grain materials demands more complicated technology and more investment, which CNPC can offer. With CNPC's investment, Tianguan can overcome technology obstacles or conduct mergers and acquisitions...

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