Chinese Biofuel Firm Zhejiang Jiaao Enprotech Partners with BP in SAF Investment Deal

Chinese biofuel firm Zhejiang Jiaao Enprotech announced that its sustainable aviation fuel (SAF) unit has entered into an investment deal with BP. This deal marks the first collaboration between a global oil major and China's emerging green aviation fuel sector. 

As per the terms of the deal, BP has agreed to endow $49.56 million to acquire a 15% stake in Lianyungang Jiaao Enproenergy Co.  

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According to a Reuters report, BP seeks to acquire a stake in the company building a 500,000-ton-per-year SAF plant in the eastern coastal city of Lianyungang.  

Jiaao is among China's pioneering investors, committing over a billion dollars to convert waste cooking oil into lower-carbon aviation fuel for export and domestic use.  

The company is one of China's leading biodiesel producers and serves major international oil corporations, including Shell, ExxonMobil, and TotalEnergies. 

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China accounts for approximately 11% of global jet fuel consumption as the world's second-largest aviation fuel market. 

Using sustainable aviation fuel can cut CO2 emissions by approximately 80% compared to conventional jet fuel. 

While Beijing has advocated for the advancement of sustainable aviation fuel, it has yet to introduce domestic mandates or subsidies. Consequently, the majority of China's limited biofuel production is currently exported.