Topsoe, a global leader in carbon emission reduction technologies, has partnered with Chuangui New Energy Company to provide cutting-edge technology and services for producing Sustainable Aviation Fuel (SAF) and renewable diesel in Qinzhou City, Guangxi, Southwest China. Under the agreement, Chuangui New Energy will utilize Topsoe’s HydroFlex® technology, along with proprietary equipment and catalysts, to process used cooking oil into SAF and renewable diesel.

Construction of the plant commenced following a Final Investment Decision (FID) in December 2024, with operations expected to begin in December 2026. At full capacity, the facility will process 300,000 tons of feedstock annually, enabling an estimated reduction of 800,000 tons of CO2e per year. This reduction is equivalent to avoiding emissions from approximately 160,000 gasoline-powered cars driven for a year.

Elena Scaltritti, Chief Commercial Officer at Topsoe, highlighted the partnership’s significance, stating: “This collaboration marks a vital milestone in expanding our SAF footprint in China and reflects our dedication to advancing global SAF production. We are proud to support Chuangui New Energy’s decarbonization journey and contribute to the region’s energy transition goals.”

He Xiong, Chairman of Chuangui New Energy Company, emphasized the importance of the biomass energy industry in achieving China’s “double carbon” goals. He remarked, “After thorough consideration, we chose Topsoe for its advanced commercial technology and proven solutions. Our commitment to green energy transformation and sustainable development aligns with national green development objectives, and this partnership strengthens our ability to make significant contributions to those goals.”

This agreement marks Topsoe’s second SAF project in China, following a partnership with Guangxi Free Trade Zone Hongkun Biomass Fuel Co., Ltd., signed in April 2024. It also builds on Topsoe’s expanding SAF initiatives globally, which include agreements with major renewable fuel plants such as Rio Grande in Brazil, HOLBORN in Germany, Braya Renewable Fuels in Canada, and Cepsa Bioenergia San Roque in Spain.

The growing demand for SAF underscores the importance of these projects. The International Energy Agency’s Net Zero Scenario forecasts that over 10% of aviation fuel consumption must transition to SAF by 2030 to stay on track for net-zero emissions by 2050. However, as of July 2023, SAF accounted for only 0.2% of global jet fuel demand, according to the International Air Transport Association.

By leveraging Topsoe’s proven technology, this project in Guangxi promises to play a crucial role in addressing the SAF production gap while advancing China’s green energy transformation.

HydroFlex enables customers to transform a wide range of fats, oils, and greases into renewable jet fuel and diesel that meet all internationally recognized specifications. This versatile technology can be implemented in new grassroots facilities or utilized in retrofitting existing units for co-processing or fully renewable fuel production.