What is the Sustainable Aviation Fuel (SAF) Policy of China?

China views sustainable aviation fuel (SAF) as a critical element in its strategy to achieve its carbon reduction targets. Recognizing the environmental impact of its large and growing aviation sector, the country has been actively pursuing SAF development for over a decade.

Early efforts, led by Sinopec, began in 2009 with research and development initiatives, culminating in the establishment of China's first SAF production line in 2013. Despite initial setbacks due to high production costs, China has doubled down on SAF development in recent years.

Several key milestones highlight China's commitment to SAF:

• First Test Flight: Sinopec successfully conducted the first test flight using domestically produced SAF in 2013 in Shanghai.
• First Domestic Passenger Flight: Hainan Airlines operated the first passenger flight using SAF in 2015, flying a Boeing 737-800 from Shanghai to Beijing.
• First International Passenger Flight: Hainan Airlines achieved another milestone in 2017 with the first international passenger flight using SAF, landing a Boeing 787 in Chicago.
• Commercial Scale Production: Sinopec Zhenhai Refinery marked a significant step forward in 2020 by establishing China's first commercial-scale SAF production facility. Their HEFA (Hydroprocessed Esters and Fatty Acids) products received certification from the Roundtable on Sustainable Biomaterials (RSB) in 2022.

These developments signal a turning point for SAF production in China. With ambitious plans from companies like Junheng Industry Group Biotech, Zhejiang Jia’ao Enprotech, and Tianzhou New Energy, the country's SAF production capacity is poised for rapid growth. Projections indicate that within the next year and a half, these companies alone could produce over 1.3 billion liters of SAF annually, representing approximately 2.5% of China's current aviation fuel demand.