Green Energy

BP, China’s Jiaao collaborate for SAF advancement

BP plc (BP), the global oil giant, has invested 354 million yuan in Zhejiang Jiaao Enprotech’s sustainable aviation fuel (SAF) unit, marking the first partnership of its kind in China’s emerging green aviation fuel sector.

As per reports, the new investment gives BP a 15% stake in Lianyungang Jiaao Enproenergy Co, a subsidiary of Jiaao, which is spearheading the development of a major SAF plant in Lianyungang, located on China’s eastern coast.

Jiaao Enprotech, a leading biofuel company in China, is at the forefront of the country’s sustainable aviation fuel production. The company is constructing a 500,000-ton-per-year SAF facility in Lianyungang, set to be one of the largest in the region.

The investment by BP is a significant move towards enhancing China’s sustainable aviation fuel capabilities, aligning with the country’s broader push towards greener energy solutions.

This partnership between Jiaao and BP is particularly noteworthy due to both the scale of the investment and the fact that it represents the first collaboration between a Chinese SAF unit and a global oil major. The alliance is expected to accelerate the growth of China’s green aviation sector and support global efforts to reduce carbon emissions in air travel.

As the world’s second-largest aviation fuel market, China accounts for approximately 11% of global jet fuel consumption. However, the country has yet to implement domestic mandates or subsidies specifically aimed at promoting sustainable aviation fuel. Currently, most of China’s biofuel production is geared towards exports.

Despite this, Jiaao is making significant investments in SAF production, utilizing waste cooking oil as a feedstock to create lower-carbon aviation fuel. These efforts align with Beijing’s broader goal of promoting sustainable aviation fuel, which could potentially reduce CO2 emissions by up to 80% compared to traditional jet fuels, according to the report.

BP investment in SAF unit of Jiaao is part of its larger strategy to diversify into lower-carbon energy solutions. The company has been actively investing in green technologies and renewable energy projects globally, including recent plans to develop facilities in Spain and Germany that could produce sustainable jet fuel and green hydrogen.

Subhash Yadav

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