Topsoe to provide technology to Chuangui Lingang New Energy's 300,000-tpy SAF/renewable diesel plant in China
- Topsoe has been selected by Guangxi Free Trade Zone Chuangui Lingang New Energy Co., Ltd (Chuangui New Energy company) deliver technology and services to produce Sustainable Aviation Fuels (SAF) and renewable diesel.
- The agreement represents Topsoe’s second SAF project in China, following its first agreement in April 2024.
- The plant will be located in Guangxi, China, and reached Final Investment Decision (FID) in December 2024, with operations starting in December 2026.
Topsoe has signed an agreement with Chuangui New Energy company to provide technology and services to produce 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.
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 ten months, signing agreements with Refinaria de Petroleo Riograndense's 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 demand.2
References
1) IEA, World Energy Outlook 2024
2) IATA, Air travelers’ views on SAF highlight a range of issues, July 2024
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