- BP invests $49.56 million in Zhejiang Jiaao Enprotech’s SAF unit, marking its first alliance in China’s green aviation fuel sector.
- Jiaao Enprotech constructs a 500,000-ton-per-year SAF facility in Lianyungang, aiming to become one of the region’s most significant.
- The partnership accelerates China’s green aviation sector growth and aligns with global efforts to reduce carbon emissions from air travel.
BP plc (BP), the global oil major, invested 354 million yuan ($49.56 million) in Zhejiang Jiaao Enprotech’s sustainable aviation fuel (SAF) unit. This marks BP’s first alliance in China’s emerging green aviation fuel sector. The investment grants BP a 15% stake in Lianyungang Jiaao Enproenergy Co., a subsidiary of Jiaao focused on developing an essential SAF plant in Lianyungang, an eastern coastal city.
Jiaao Enprotech, a leading Chinese biofuel firm, drives the nation’s SAF production. The company is building a 500,000-ton-per-year SAF facility in Lianyungang, which will rank among the largest in the region. BP’s investment advances China’s SAF capabilities as the country moves toward greener energy solutions.
The partnership between Jiaao and BP stands out for its scale and as the first collaboration between a Chinese SAF unit and a global oil major. This alliance accelerates the growth of China’s green aviation sector and supports international efforts to reduce carbon emissions from air travel.
China, the world’s second-largest aviation fuel market, accounts for about 11% of global jet fuel consumption. Despite its size, China has not yet implemented domestic mandates or subsidies to promote SAF. The country currently directs most of its biofuel production toward exports.
Jiaao heavily invests in SAF production, utilising waste cooking oil as a feedstock to produce lower-carbon aviation fuel. This strategy aligns with Beijing’s broader goal of promoting SAF, which can reduce CO2 emissions by up to 80% compared to traditional jet fuels.
BP’s investment in Jiaao’s SAF unit fits its broader strategy of diversifying into lower-carbon energy solutions. The company continues to expand its green technology and renewable energy projects worldwide. Recent plans include developing facilities in Spain and Germany to produce sustainable jet fuel and green hydrogen.
The completion of the Lianyungang SAF plant in 2025 will allow BP and Zhejiang Jiaao Enprotech to significantly reduce the aviation industry’s carbon footprint. This partnership is vital to BP’s strategy to support the global transition to cleaner energy.
BP’s stake in a Chinese sustainable jet fuel company marks a significant step in its strategy. The completion of the SAF plant in 2025 will substantially impact the aviation industry’s carbon footprint. The partnership between BP and Zhejiang Jiaao Enprotech supports global efforts to reduce emissions from air travel.
China’s role in the global aviation fuel market remains significant, yet its domestic SAF production remains limited. BP’s investment seeks to change that, supporting both China’s and the world’s move toward greener energy solutions. The collaboration between BP and Jiaao Enprotech underscores the importance of global partnerships in addressing climate change and reducing the aviation sector’s environmental impact.