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China's CNAF invests in private Chinese SAF factory

China National Aviation Fuel Company announced on Monday that it had agreed to purchase a stake in a sustainable biofuel plant owned by Henan Junheng Industry Group Biotech Co.

This is CNAF’s second investment in a "green" jet-fuel maker that is privately controlled. CNAF, China's largest distributor of aviation fuel, is a major player in the world.

CNAF announced that the agreement was signed on WeChat, but provided no financial details.

Junheng, a company based in Central China, is one of China’s first commercial SAF refiners. It converts used cooking oil into low-carbon fuel.

China is the largest UCO producer in the world.

Junheng plans to expand its 400,000-metric-ton-per-year SAF factory in Puyang (Henan Province) to one million tpy by June 2026.

According to a Jiaao filing, CNAF acquired a 10% stake in a SAF plant located in east China, controlled by Zhejiang Jiaao. The purchase price was 261 million yuan, or about $36,35 million.

China, which is the second largest aviation fuel market in the world, has not yet announced a national mandate regarding the use of SAF.

Last September, a pilot program was launched for the first time to use SAF on a dozen domestic flights departing Beijing, Chengdu Zhengzhou, and Ningbo airports. In March, the scheme was extended to include all flights leaving these airports.

(source: Reuters)