Chinese SAF project eyes EU market with over 1 billion yuan in presale orders

China's sustainable aviation fuel plant under construction on Liuheng Island in Zhoushan, Zhejiang province, is targeting European and Southeast Asian export markets when it begins production in early 2027, with the developer already holding more than 1 billion yuan ($150 million) in overseas presale orders.

The project, developed by Zhejiang Jianglan Biotechnology, is 50% complete and scheduled to begin trial production by the end of March 2027, Zhoushan Daily, a government-run media outlet, reported Oct. 15.

Using waste cooking oil and other bio-oils as feedstock and Haldor Topsoe's hydroisomerization process technology, the facility is designed to process 320,000 mt/yr of waste bio-oils and produce 225,000 mt/y of HEFA-based SAF, a volume that would make it one of China's leading single-site SAF production facilities and a potentially significant new supply source for jet fuel trade flows into Europe.

Export strategy

The project's commercial strategy is oriented primarily toward overseas demand, with the EU's SAF blending mandates requiring a minimum 6% SAF blend at airports by 2030, rising to 70% by 2050 cited as the primary demand driver, report said.

"After the project goes into operation, we will focus on the overseas market," Tang Huaijiang, general manager of Zhejiang Jianglan Bioenergy Technology Co. Ltd., said, according to the report. "Currently, the company has already begun business negotiations with SAF traders and base airlines in Europe and Southeast Asia, and is actively applying for national SAF export 'whitelist' qualifications."

He said the company intended to leverage Zhoushan Port's logistics advantages to build an export-oriented SAF base while also serving domestic civil aviation green blending pilot requirements.

The plant is designed to meet the international ASTM D7566 aviation fuel standard and is expected to obtain airworthiness certification from the Civil Aviation Administration of China alongside EU sustainability and carbon certification simultaneously with the start of production, the report said.

Tang said the Haldor Topsoe hydroisomerization process delivers a feedstock conversion yield of 80% above the industry average of 70%, meaning 1 mt of pretreated waste oil produces 0.8 mt of SAF, generating 6,000 mt more SAF per year than comparable projects, adding nearly 100 million yuan in additional annual output value, according to the report.

Platts, part of S&P Global Energy, assessed Sustainable Aviation Fuel HEFA-SPK FOB Straits, reflecting CORSIA-certified cargoes, at $2,180/mt Oct. 16, down $20/mt from Oct. 15.