Global SAF Production in Early Stages; China Eyes Supply Leadership with Raw Material, Capacity, and Certification Advantages
Global SAF production remains nascent, with over 60% of announced capacity still in the planning phase. Among operational plants, only about one-third are dedicated to SAF production, with the rest primarily producing other renewable fuels.
China's Massive Feedstock Potential
China possesses abundant potential SAF feedstock resources, positioning it as a potential major global supplier. These resources include:
235 million tonnes/year of municipal organic solid waste
210 million tonnes/year of agricultural waste
195 million tonnes/year of forestry waste
5 million tonnes/year of industrial waste ethanol
3.4 million tonnes/year of used cooking oil (UCO)
Theoretical maximum SAF production capacity utilizing these feedstocks exceeds 46 million tonnes per year, indicating enormous development potential.
Rapid Domestic Capacity Expansion
China's SAF production capacity is expanding rapidly, driven by significant investments:
Henan Junheng Industrial: Expanding from an existing 200,000 tonnes/year capacity. Upon completion in late 2025, will have 1 million tonnes/year UCO processing and 800,000 tonnes/year SAF production capacity – currently China's largest and only commercially operational SAF producer.
Sinopec & TotalEnergies: Signed a deal in March 2024 for a 230,000 tonnes/year SAF plant using waste oils at a Sinopec refinery.
Energy China CPECC Jilin Green Methanol & Green Jet Fuel Project: Signed March 2024; ~¥12 billion investment; 200,000 t/y green methanol & 100,000 t/y SAF.
Guangxi Hongkun Biomass Fuel Co.: Phase 1 of a 600,000 t/y SAF project; ¥1.677 billion investment.
Multiple Other Projects: Numerous other large-scale projects announced or under development across China, involving companies like China Energy Engineering Corporation (CEEEC), Shanxi International, Haike Chemical, Lanjing Bioenergy, and Inner Mongolia Jiutai Group, collectively representing hundreds of thousands of tonnes of planned SAF capacity and billions of RMB in investment.
Navigating Certification Landscape
SAF sales require certifications varying by region:
CAAC Airworthiness Certification: Mandatory for use on Chinese aircraft. Currently held by Sinopec Zhenhai Refining, Haixin New Energy Technology (Hainan), and Henan Junheng Bio-energy.
ISCC/RSB CORSIA: Certifies feedstock sustainability for CORSIA compliance. Held by 12 Chinese producers as of Feb 6, 2025.
ISCC-EU: Certifies compliance with EU sustainability requirements. Also held by 12 Chinese producers.
This growing capacity, coupled with certification achievements, strengthens China's position in the global SAF supply chain.