Cleantech firm Topsoe will help to get a Chinese clean fuels project off the ground by providing essential technology needed to produce sustainable aviation fuels (SAF) and renewable diesel.
Located in Guangxi, the project is run by Guangxi Free Trade Zone Chuangui Lingang New Energy Co., Ltd (Chuangui New Energy) and aims to process 300,000 tonnes of feedstock (used cooking oil) into SAF and clean diesel per year after December 2026.
The partners intend to achieve this by using Topsoe’s HydroFlex technology and other equipment and catalysts, a move that could avoid the emission of 800,000 tonnes of carbon dioxide (CO2) equivalent each year.
Topsoe’s Chief Commercial Officer Elena Scaltritti see’s the partnership as an ‘important milestone’ for the growth of the company’s SAF mission in China.
This was echoed by Chuangui New Energy’s Chairman He Xiong, who said, “As one of the important means to promote the transformation of energy structure and achieve the goal of ‘double carbon’ in China, the biomass new energy industry has great prospects for development.”
The deal is Topsoe’s second SAF-focused project in China, following its partnership with Guangxi Free Trade Zone Hongkun Biomass Fuel Co.,Ltd in April last year.
Topsoe has made a series of SAF-related moves over the last ten months, having signed deals with a renewable fuels plant in Brazil, a refinery in Germany, a plant in Canada and another in Spain.
According to the International Energy Agency (IEA)’s Net Zero Scenario, over 10% of fuel use in aviation needs to be SAF by 2030 to stay on course for Net Zero CO2 emissions by 2050.
In July 2023, the International Air Transport Association (IATA) estimated global SAF production to make up only around 0.2% of total jet fuel demand.
A report from the World Economic Forum suggests that China needs to explore alternative feedstocks for SAF such as alcohol-to-jet and power-to-liquid fuels.
This could lead to the disruption of global markets, potentially leading to international trade tensions with the EU and the US, according to the report.
China’s air travel market is projected to be the world’s largest by 2043, while Europe’s ability to scale production faces challenges due to high labour costs, limited feedstocks and global competition.
While refineries are in development, more European SAF projects have been cancelled or paused than new ones announced since the start of 2024.
Energy giant Shell has halted construction of a biofuel facility in Rotterdam while also pulling the plug on its planned e-SAF project in Sweden.
In comparison, China is moving rapidly. The country launched its first SAF pilot programme in September 2024 and twelve commercial flights from Air China, China Eastern and China Southern will use SAF at four airports, with plans to expand later this year.
