China launches 100,000 mt/year negative-carbon SAF project in Xinjiang

China's Dongde Energy launched a 100,000 metric ton/year negative-carbon sustainable aviation fuel project, which uses captured industrial carbon dioxide as the primary feedstock, according to multiple local media reports on Sept. 23.

The project, backed by a total investment of 11 billion yuan, marks the transition of China's negative-carbon aviation fuel demonstration project from planning to active implementation, according to the reports.

With an annual output targeted at 100,000 mt, the facility could meaningfully contribute to China's SAF blending obligations as the country advances its dual-carbon climate targets, peak emissions before 2030 and carbon neutrality by 2060.

Technology validation

Unlike conventional SAF pathways that use biogenic feedstocks such as used cooking oil or agricultural waste, the Dongde Energy project employs a CO2 hydrogenation route, coupling green hydrogen produced from renewable electricity with captured industrial carbon dioxide to synthesize aviation fuel.

The process is designed to generate net negative carbon emissions by consuming CO2 that would otherwise be released into the atmosphere from Yiwu County's established coal chemical industry base.

The full project scope includes 2 gigawatts of dedicated wind power capacity, a green hydrogen production line with an annual capacity of 50,000 mt, and carbon capture and utilization infrastructure capable of processing 400,000 mt of CO2 per year, according to reports.

Feasibility studies and procurement processes for the new energy power, carbon capture, and chemical synthesis systems are currently underway, the reports said.

Platts, part of S&P Global Energy, assessed Sustainable Aviation Fuel HEFA-SPK FOB China, reflecting ISCC-EU certified cargoes, at $2,410/mt on Sept. 23, down $15/mt from Sept. 22. The SAF FOB China premium was at $1,053.50/mt over Platts Jet Kero FOB Singapore forward curve (MOPS), down $62.75/mt from Sept. 22.