China National Offshore Oil Corp. (CNOOC), which spurred controversy in the United States in June 2005 by offering $18.5 billion to buy Unocal Corp., is finishing up a project that converts CO2 to degradable plastic.

China Blue Chemical Ltd., a subsidiary of CNOOC, announced it will start the production of carbon dioxide-propylene oxide copolymers (PPC) in June, according to China's Shanghai Securities News. The project will be the largest in the world with an annual capacity of 3,000 metric tons, the company said in a press release.

The facility is located in China's most southern province and an island in the South China Sea, Hainan.

The total investment on the project was reported to be around 152 million yuan ($21.4 million).