bp invests in China’s sustainable aviation fuel industry

bp has expanded its presence in China’s aviation fuel market by acquiring a 15% stake in the sustainable aviation fuel (SAF) unit of Zhejiang Jiaao Enprotech Stock Co., Ltd. The USD49.56 million investment strengthens bp’s commitment to lower-carbon energy sources as it seeks to support the development of sustainable aviation in one of the world’s largest aviation markets.

Jiaao Enprotech, a leading biofuel company in China, is currently constructing a 500,000-ton-per-year SAF plant in Lianyungang, Jiangsu Province. The plant, expected to be completed by early 2025, will produce biofuel from waste cooking oil and animal fats, helping to reduce CO2 emissions by up to 80% compared to traditional jet fuel.

This strategic partnership marks the first alliance between a global oil major and a Chinese SAF producer. It is anticipated to accelerate the growth of China’s green aviation industry and contribute to global efforts to cut carbon emissions in the transportation sector.

Despite its significant role in the global aviation industry, China has yet to produce SAF domestically on a commercial scale. However, the nation is investing more than a billion dollars to develop SAF plants, aiming to achieve carbon neutrality by 2060.

bp’s involvement in this project aligns with its broader strategy to diversify into lower-carbon energy. The deal comes amid growing international focus on sustainable aviation fuels, with experts forecasting a rapid expansion of SAF production capacity worldwide by 2030.

Jiaao Enprotech is already a major player in China’s biofuel industry, supplying biodiesel to global oil companies such as Shell, ExxonMobil, and TotalEnergies. The company’s collaboration with bp represents a significant step forward in China’s transition to greener energy solutions.