Energy transition technology specialist Topsoe has secured its first sustainable aviation fuel (SAF) project in China having been selected to supply its HydroFlex technology to a Chinese SAF producer based in Guangxi, China.
Guangxi Free Trade Zone Hongkun Biomass Fuel., Ltd (Guangxi Hongkun Biomass) will use the technology to process 300,000 tonnes per year of feedstock into renewable fuels.
The SAF production plant is expected to begin construction in May 2024, with SAF production to begin within the first few months of 2026.
“This agreement represents a key step in introducing an alternative to conventional jet fuel in this geography and contributes to our sustained efforts of supporting decarbonisation globally,” said Elena Scaltritti, CCO at Topsoe.
HydroFlex takes feedstocks such as vegetable oils, animal fats and used cooking oils and biocrude from waste and biomass and turns it into gasoline, jet fuel and diesel.
“After comprehensive selection, we firmly believe that Topsoe is capable of providing strong support to Hongkun in the field of bio-aviation fuel production,” commented Jiaming Liu, General Manager of Guangxi Hongkun Biomass.
Aviation supports around $3.5 trillion (4.1%) of the world’s GDP and accounts for 3% of all global carbon dioxide (CO2) emissions.
According to a study from Deloitte, titled ‘SAF in China’, predicts that as other sectors decarbonise, aviation’s contribution to global emissions could reach 22% by 2050.
On average, SAF can reduce emissions by up to 80%, according to figures from IATA and Airbus.
IATA forecasts the biggest growth in passenger numbers will be in Asia Pacific (APAC). In 2021, the Chinese domestic passenger market made up 18.9% of global passengers.
The country’s carbon neutral aviation journey began in 2011, when Air China and Boeing conducted China’s first sustainable biofuel flight.
China has since completed multiple commercial cargo and passenger flights using SAF, leading to Airbus signing a MoU with the China National Aviation Fuel Group to cooperate on SAF development.
Deloitte outlined the potential of China to become a major global supplier of SAF given its abundant feedstock.
By 2030, the country’s total jet fuel consumption is estimated to reach 60.5m tonnes by 230, with a CAGR of 8% from 2023 to 2030.
SAF demand in China may reach three million tonnes per year by 2030 if China’s aviation sector aligns with IATA’s 5.2% SAF target and – if feedstock is fully converted to SAF – supply in the country could exceed 19Mt/year by 2030.
China’s SAF production capacity could reach 82Mt/year by 2050, aided by improved efficiency of feedstock processing and scaling green hydrogen production.
