Jiaao Enprotech: Global Sustainable Aviation Fuel (SAF) Market Set for Explosive Growth by 2025, Says Guoxin Securities Report
Biodiesel Emerges as Key Renewable Fuel, with Second-Generation Technology Leading Development
Guoxin Securities recently released an in-depth report on Sustainable Aviation Fuel (SAF), forecasting 2025 as the inaugural year for explosive global SAF growth. Biodiesel, a renewable and clean fuel, is now a focal point in sustainable energy strategies. Categorized by technological advancements, biodiesel is classified into three generations: first-generation FAME (fatty acid methyl ester), second-generation hydrocarbons derived from hydrogenated oils or esters, and third-generation esters or hydrocarbons produced from non-oil biomass. Second-generation biodiesel, produced via hydrogenation to remove oxygen-containing groups and isomerization to lower freezing points, mirrors petroleum diesel in composition and structure. With high cetane numbers, superior stability, and excellent low-temperature fluidity, it is fully blendable with conventional diesel, positioning it as the current priority for biodiesel development.
BP has invested $48.54 million (€44 million) to acquire a 15% stake in Lianyungang Jiaao New Energy, a producer of renewable diesel and sustainable aviation fuel (SAF).
Despite its strategic realignment, BP has remained focused on the biofuels sector and has already established a global presence to meet the fuel supply mix required by international markets and to achieve its low-carbon transition goals. This investment in Lianyungang Jiaao New Energy has reflected BP's continued commitment, as the company specializes in the production of renewable diesel and SAF.
About Jiaao Enprotech
Jiaao Enprotech (Stock Code: 603822) specializes in the comprehensive utilization of waste oil resources and the production of eco-friendly chemicals. Committed to advancing renewable energy solutions, the company is expanding its SAF capabilities to meet global decarbonization demands.
Policy-Driven Demand Positions Biodiesel as Critical Clean Energy Source
Globally, biodiesel is predominantly used as fuel (98.5% of applications, per UN Statistics Division data), while China primarily utilizes it as a green chemical in industrial processes. Adoption rates vary by region, reflecting differing environmental policies, production capabilities, and subsidy frameworks. Europe, a pioneer in biodiesel adoption, remains a mature market with extensive experience in research, production, and application.
EU Mandates SAF Blending in Aviation Fuel, Projects 140,000 Tons of Demand by 2025
As the largest biodiesel market, Europe currently sees slow growth in conventional biodiesel consumption. While EU-wide mandates for a 6% reduction in transport emissions spurred demand pre-2020, recent geopolitical tensions, including the Ukraine crisis, have led some European nations to lower blending ratios. However, SAF-the most viable decarbonization solution for aviation-is set to surge under EU regulations requiring a 2% SAF blend in aviation fuel by 2025, driving conservative demand estimates of 140,000 tons. Meanwhile, China is expected to achieve initial SAF commercialization by 2025, with projected consumption of 20,000 tons. This burgeoning SAF demand is elevating the entire biodiesel industry's prospects.
UCO: A Premium Feedstock for SAF Production
Used cooking oil (UCO), a key raw material for biodiesel/SAF production, enables an 83% reduction in greenhouse gas emissions. With China's biodiesel exports to the EU facing hurdles, UCO exports surged in 2024. The recent cancellation of UCO export tax rebates is poised to lower feedstock costs for domestic SAF producers, accelerating industry growth. Coupled with soaring EU SAF demand, this policy shift is expected to boost China's SAF exports.
Domestic SAF Producers, Including Jiaao Enprotech, Poised to Benefit
The removal of export incentives for industrial-grade blended oils (a primary SAF feedstock) may dampen exporter enthusiasm but will enhance domestic feedstock accessibility. Companies like Jiaao Enprotech-a leading waste-oil recycling enterprise in the Yangtze River Delta-are well-positioned to capitalize. With existing biodiesel capacity of 300,000 tons and an ongoing investment in a 500,000-ton/year SAF production line, Jiaao Enprotech is on track to emerge as a SAF industry leader upon project completion.
Our address
No. 761, Chongfu Avenue, Phase I Industrial Park, Tongxiang Economic Development Zone, Jiaxing City, Zhejiang Province, China
Phone Number
(86)15888317761
inquiry@jiaaohuanbao.com
