CNAF announces another investment in SAF project

China National Aviation Fuel Company (CNAF) said it has acquired a stake in Henan Junheng Industry Group Biotech’s sustainable aviation fuel (SAF) plant just weeks after it acquired 10% stake in another SAF producer Zhejiang Jiaao Enprotech.

The company shared the announcement of the acquisition via WeChat. However, it did not disclose any details around the pricing or quantum of stake.

Junheng is China’s first sustainable aviation fuel (SAF) refiner producing the fuel through processing used cooking oil. The company is working on expanding its nameplate production capacity from 400,000 metric tonnes per annum to 1mtpy by June 2026.

China is the world’s largest used cooking oil producer and the second largest jet fuel market.

The domestic sector has spurred into action to produce SAF despite a lack of a national SAF blending mandate.

The country launched pilot scheme last year in September to use SAF in dozen flights from airports including Beijing, Chengdu, Zhengzhou and Ningbo.

Last month, Zhejiang Jiaao Enprotech (Jiaao Enprotech) announced that it has received strategic investment from China National Fuel Group (CNAF).

According to Jiaao Enprotech, CNAF will invest approximately ¥261m ($36.4m) for a 10% equity stake post-capital increase. However, Jiaao Enprotech will remain the controlling shareholder, retaining actual control over Lianyungang Jiaao.