China Plans to Boost Biodiesel Use with Pilot Projects

  • Deficient policy support has kept biodiesel consumption, a low-carbon alternative to petroleum diesel, low in China.
  • Biodiesel produced from UCO has slightly lower energy content than petroleum diesel but cuts greenhouse gas pollution by 83%.

China will launch a series of pilot projects to spur domestic production and consumption of biodiesel, the National Energy Administration (NEA) has said. This is to beef up environmental efforts where the country lags behind other big economies. Deficient policy support has kept biodiesel consumption low in China, a low-carbon alternative to petroleum diesel made from feedstocks such as palm oil and used cooking oil (UCO).

In a document issued yesterday, the NEA urged local authorities to carry out demonstration projects in several areas of the biodiesel industry and advised regional governments to provide financial support. The NEA said, “We will expand the application scenarios of domestic biodiesel. He added that it aims to evolve a development path that could furnish a basis for continued promotion of green liquid fuels.”

Such efforts include integrating the UCO feedstock supply chain and distribution of the fuel at highway gas stations. It also pledged to promote the inclusion of biodiesel in a voluntary national certified emission reduction mechanism. The NEA did not provide details on financing and timelines.

A study in 2022 by the Argonne National Laboratory in the United States showed that biodiesel produced from UCO has slightly lower energy content than petroleum diesel but cuts greenhouse gas pollution by as much as 83%. While forecasts disclose that China will deliver 1.9 billion litres of biodiesel this year, data from the U.S. Department of Agriculture (USDA) shows that domestic demand will mop up just 40% of the quantity produced.

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