China's First Private SAF Producer, LIANYUNGANG JIAAO ENPROENERGY CO., LTD., Secures Export License: From Raw Material Giant to Aviation Fuel Pioneer
As China's first bio-aviation fuel export license is granted to JIAAO ENPROTECH, the private sector's SAF production capacity is finally breaking into global markets. Against the backdrop of global aviation decarbonization, Chinese companies with this "admission ticket" are reshaping the green fuel landscape.
Amid industry anticipation, China's sustainable aviation fuel (SAF) sector has achieved a major milestone: the emergence of the first officially licensed SAF exporter.
On May 1, JIAAO ENPROTECH announced that its subsidiary, Lianyungang JIAAO New Energy Co., Ltd., received approval from the Ministry of Commerce and three other departments to pilot the export of bio-aviation fuel under a newly established "whitelist" mechanism.
According to the announcement, Lianyungang JIAAO's full-capacity bio-aviation fuel production is projected to reach 372,400 metric tons by 2025, with export licenses permitted within this scope.
This breakthrough marks China's first opening of bio-aviation fuel exports via a whitelist system. Industry experts note that the mechanism, centered on production capacity verification, prevents inefficient expansion while granting technologically advanced companies a critical first-mover advantage.
The approval enables JIAAO New Energy to optimize domestic and international resources, dynamically adjust supply based on market pricing, and maximize profitability. S&P Global highlighted that China's issuance of its first SAF export license signals regulatory standardization of bio-aviation fuel exports.
Though the current whitelist includes only JIAAO New Energy, S&P Global Platts reports that more private producers are expected to join over time.
China's SAF Industry Booms
Industry data reveals rapid growth in China's SAF sector. Major producers, including Shandong Hi-Speed Chemical and Henan Junheng Biotechnology, have planned total annual capacity nearing 3 million metric tons. Shandong Hi-Speed Chemical, with a planned capacity of 500,000 metric tons/year, has also applied for export approval, which is expected soon.
Technical certification is a prerequisite for SAF commercialization. In March, JIAAO New Energy obtained the Civil Aviation Administration of China's (CAAC) Technical Standard Order Approval for its HEFA-SPK synthetic hydrocarbon bio-jet fuel. Four Chinese producers now hold HEFA-SPK certifications, paving the way for domestic SAF to enter global aviation markets.
Global Green Aviation Accelerates
The EU's ReFuelEU Aviation Regulation, effective January 2024, mandates that all EU-departing flights use fuel containing at least 2% SAF, unlocking a trillion-euro market. However, the global SAF sector faces production bottlenecks, with unstable existing output and delayed new projects due to funding pressures.
Chinese SAF producers have long struggled with insufficient orders and low profitability. The opening of exports not only boosts China's SAF industry but also injects stability into global decarbonization efforts.
01 Export Breakthrough: Private SAF Capacity Goes Global
As China's first licensed SAF exporter, JIAAO New Energy is leveraging its first-mover advantage to expand globally, with profits expected to surge. On May 6, JIAAO ENPROTECH announced the sale of 13,400 metric tons of bio-jet fuel to a Western trader, now en route to Spain aboard the Solar Cheryl.
The whitelist approval is a milestone for both JIAAO and China's SAF industry. Previously, Chinese SAF exports lacked dedicated customs codes, forcing producers to use codes for conventional jet fuel, which require state-controlled export quotas. Only state-owned giants like Sinopec, PetroChina, and CNOOC held such privileges.
For instance, Sinopec exported 500 metric tons of SAF from Zhenhai Refining to Hong Kong International Airport using its jet fuel quota. Private producers, lacking such ties, faced logistical roadblocks.
Now, customs code 27101911-originally for "aviation turbine fuel (without biodiesel)"-has been approved for JIAAO's "bio-aviation fuel," setting a precedent for private exporters. This regulatory shift is expected to enable more private firms to enter global markets.
Overseas SAF projects, meanwhile, face growing uncertainty. Fulcrum BioEnergy (U.S.), Shell (Netherlands), and Uniper (Sweden) have paused projects totaling over 1 million metric tons in potential capacity. Germany's Haltermann Carless recently halted a 60,000-ton/year SAF project, citing financial challenges.
Against this backdrop, China's export licenses arrive at a critical moment, offering stability to global SAF supply chains.
02 From Raw Material to Finished Product: Reshaping Global SAF Supply Chains
China's entry into SAF exports not only secures its role in global decarbonization but also redefines supply chain dynamics.
Globally, SAF production relies on four pathways: Hydroprocessed Esters and Fatty Acids (HEFA), Fischer-Tropsch (FT), Alcohol-to-Jet (ATJ), and Power-to-Liquid (PTL). HEFA, the most mature technology, accounts for over 80% of global SAF output, using used cooking oil (UCO) as feedstock.
China, the world's largest UCO supplier, exported nearly 3 million metric tons (valued at 2.64billion)in2024,with2.64billion)in2024,with1.1 billion to the U.S. However, this dynamic is shifting.
Historically, China's UCO flowed overseas due to weak domestic SAF demand. Now, with growing SAF capacity-such as JIAAO's whitelist approval-local demand is rising. Reuters reports that most Chinese SAF plants use HEFA technology, processing UCO from millions of restaurants.
New plants by Shandong Hi-Speed Chemical and Sanju Biotech will further boost UCO consumption. Industry estimates suggest Chinese SAF producers currently use 100,000–120,000 metric tons of UCO monthly, a figure set to rise as new facilities come online.
Meanwhile, China's cancellation of a 13% export tax rebate for UCO in December 2023, coupled with U.S. tariffs, is expected to slash exports. Richard Dickinson of Amarus Trading predicts monthly UCO exports could drop 20–40% starting April 2024, impacting U.S. and European SAF producers reliant on Chinese feedstock.
Policy Momentum and Future Pathways
As the world's second-largest aviation market, China accounts for 11% of global jet fuel consumption. Under its "dual carbon" goals, SAF is pivotal for aviation's green transition.
Policy support is strengthening: In September 2023, CAAC launched SAF trials on 12 flights, expanding to all domestic flights at four major airports by March 2024. A new guideline on transport-energy integration further prioritizes green fuel production.
With HEFA constrained by limited UCO supply, FT, ATJ, and PTL technologies are poised for growth. China's export license breakthrough not only institutionalizes its role in global decarbonization but also marks a strategic shift from raw material exporter to high-value SAF producer.
Moving forward, Chinese firms will no longer be mere suppliers of "used cooking oil" but innovators driving global aviation's low-carbon transformation.