Topsoe, a global leader in carbon emission reduction technologies, has signed an agreement with Chuangui New Energy company to provide technology and services to produce sustainable aviation fuel (SAF) and renewable diesel.

Located in Qinzhou City of the Guangxi region, Southwest China, Chuangui New Energy company will use Topsoe’s licensing and engineering design services and technologies, including its HydroFlex® technology, proprietary equipment and catalysts enabling production of SAF and renewable diesel starting from used cooking oil.

Reaching FID in December 2024, construction of the Chuangui New Energy company plant has begun with commencement of operations expected in December 2026. Once operational and at full capacity, the plant expects to process 300,000 tons of feedstock into SAF and renewable diesel per year. When in full operation, Topsoe’s technology will expectedly enable an annual emission avoidance of app. 800,000 tons of CO2e – the equivalent of avoiding the emissions from approximately 160,000 gasoline-powered passenger vehicles driven for a year.

Elena Scaltritti, chief commercial officer at Topsoe, said, “Our partnership with Chuangui New Energy company is an important milestone for the growth of Topsoe’s SAF offering in China and reflects our commitment to scale SAF production across the globe. We look forward to supporting critical energy transitional industries in China, such as Chuangui New Energy company, and deliver on its decarbonization goals.”

He Xiong, chairman of Chuangui New Energy company, said,“As one of the important means to promote the transformation of energy structure and achieve the goal of "double carbon" in China, the biomass new energy industry has great prospects for development. After a comprehensive selection, we firmly believe that Topsoe, with its advanced commercial technology and proven solutions, will help us move forward in the field of biomass liquid fuel production. Chuangui New Energy Company will actively respond to the national call, committed to energy green low-carbon transformation and sustainable development, to achieve the national green development goals to contribute more strength.”

The agreement represents Topsoe’s second SAF project in China, following its selection by Guangxi Free Trade Zone Hongkun Biomass Fuel Co., Ltd in April 2024. It also follows significant growth in Topsoe’s global SAF offering over the last 10 months, signing agreements with Refinaria de Petróleo Riograndense’ Rio Grande renewable fuels plant in Brazil, HOLBORN’s renewable fuels refinery in Hamburg, Germany, Braya Renewable Fuels’ Come By Chance plant in Canada and Cepsa Bioenergia San Roque’s Palos de la Frontera plant in Spain.

It additionally addresses the rapidly growing demand for SAF. The International Energy Agency’s Net Zero Scenario suggests that over 10% of fuel consumption in aviation needs to be SAF by 2030¹ to stay on course for net zero CO2 emissions by 2050. In July 2023, the International Air Transport Association estimated global SAF production to make up only around 0.2% of total jet fuel demand².