SAF developers in China retreat amid lack of policy

Sustainable aviation fuel (SAF) project developers are retreating their project start up dates citing lack of policy guidance and support from the government, according to reports.

The news follows multiple announcements of pausing or postponing of projects in the country. Reports last year showed project developers eyeing to invest nearly $1bn in setting up SAF projects. However, the progress stalled as the much-anticipated SAF mandate in China is yet to be announced.

Reports showed that Tianzhou New Energy and Jinshang Environmental Protection Tech, who were planning to build SAF projects in southwestern Sichuan province, have pushed-back target dates for first production.

Earlier in 2024, another project developer Zhejiang Jiaao Enprotech paused production shortly after launching its 500,000-tpy site in Lianyungang for a test run.

According to reports, the companies are awaiting policies governing SAF exports, including a customs tariff code, quota management regime and tax rebate rules similar to those that apply to conventional aviation fuel.

The country currently produces around 200,000 metric tons annually of SAF mostly from two plants and mainly for export.

One of these sites is operated by EcoCeres, which began making the fuel in 2022 in east China for export. The other, central China-based Junheng Industry Group Biotech, started making the fuel in early 2024.

There are no SAF blending targets or mandates currently in force in Asia, with production mostly sent to Europe, although blending targets are scheduled to be in place next year in Malaysia, Thailand and Singapore.