BP has made a significant investment of €44.4 million in Zhejiang Jiaao Enprotech’s sustainable aviation fuel (SAF) unit, marking a pivotal moment as the company forms its first alliance in China’s emerging green aviation fuel sector. This investment provides BP with a 15% stake in Lianyungang Jiaao Enproenergy Co., a subsidiary of Jiaao that is dedicated to developing a major SAF plant in Lianyungang, an eastern coastal city. The plant, set to produce 500,000 tons of SAF per year, will be one of the largest of its kind in the region.

This strategic move by BP represents a major advancement in enhancing SAF capabilities within China. As the world’s second-largest aviation fuel market, China is responsible for about 11% of global jet fuel consumption. Despite this significant market presence, most of China's biofuel production is currently focused on export rather than domestic use. Jiaao is addressing this gap by heavily investing in SAF production, using waste cooking oil as feedstock to produce lower-carbon aviation fuel. This method aligns with broader sustainability goals and contributes to reducing the carbon footprint of aviation.

BP’s investment in Jiaao’s SAF unit fits seamlessly into its wider strategy of transitioning toward lower-carbon energy solutions. The company has been proactive in expanding its portfolio of green technologies and renewable energy projects globally. This includes recent initiatives to develop facilities in Spain and Germany, aimed at producing sustainable jet fuel and green hydrogen. By investing in Jiaao’s SAF unit, BP is taking a significant step towards supporting the global shift to cleaner energy sources and advancing its goals for sustainability.

The partnership with Jiaao is not only a milestone for BP but also a significant boost for China’s green aviation sector. It underscores BP’s commitment to investing in innovative fuel technologies and supporting the transition to sustainable energy solutions on a global scale. The development of the Lianyungang SAF facility is expected to play a crucial role in meeting the increasing demand for cleaner aviation fuels and supporting China’s environmental goals.

Overall, BP’s investment reflects its ongoing efforts to diversify its energy portfolio and reinforce its position as a leader in the global transition to sustainable energy. By collaborating with Jiaao, BP is helping to drive progress in SAF technology and contribute to the reduction of carbon emissions in the aviation industry. This investment highlights the company’s commitment to fostering advancements in green energy and supporting a cleaner, more sustainable future for aviation.