EcoCeres signs investment LOI for full SAF supply chain in Dongguan, China
EcoCeres signs an investment letter of intent with the Dongguan Municipal People’s Government to build a sustainable aviation fuel (SAF) supply chain in the Guangdong-Hong Kong-Macao Greater Bay Area.
The supply chain focuses on EcoCeres’ 450,000 tonne per annum hydrotreated vegetable oil (HVO) and SAF facility in Dongguan. The supply chain will connect the feedstock collection across the Greater Bay Area to the refinery and the blending, refuelling and trading facilities in Hong Kong.
“Hong Kong SAR Government and Dongguan Government leading EcoCeres to build in Dongguan a sustainable aviation fuel value chain is a real milestone,” says John Lee, chief executive, Hong Kong SAR. “The collaboration between Hong Kong and Dongguan is the realisation of executive-led governance of Hong Kong and the joint working of effective government and efficient market. It is also an excellent example of synergy of the two places that contributes to the country’s dual carbon targets.”
EcoCeres was founded and incubated by Towngas with integrated technology to refine and convert waste based feedstock, including used cooking oil, into SAF. Currently the company operates two SAF facilities. One in Jiangsu, China with a capacity of 350,000 tonnes and another in Johor, Malaysia, with a capacity of 420,000 tonnes. Making the company the second largest SAF producer globally.
“We are delighted that EcoCeres, a homegrown Hong Kong green unicorn, has grown to become the world’s second-largest SAF producer,” notes Peter Lee, chairman, The Hong Kong and China Gas Company and principal, Full Vision Capital. “By leveraging Hong Kong’s unique position as an international aviation hub ‘backed by China and connected to the world’, together with Dongguan’s solid industrial base and well-established industrial ecosystem, we are confident in building a world-class SAF supply chain in the Greater Bay Area. This will not only meet rising global demand for SAF, but also inject new momentum into regional and national economic development.”
Wei Hao, secretary, CPC Dongguan Municipal Committee adds: “The decision to develop the EcoCeres Sustainable Aviation Fuel (SAF) project in Dongguan reflects strong confidence in the city’s solid industrial foundation, favorable business environment and strategic location…We are confident that the EcoCeres project will build on successful experiences such as the Airport Hub, serve as a flagship for green technology innovation, help establish a sustainable aviation fuel value chain, and provide strong support for waste reduction and recycling.”