Hong Kong-Dongguan to build SAF supply chain with new biofuels firm Ecoceres facility
Hong Kong-based biofuels firm Ecoceres, backed by Bain Capital, signed an investment letter of intent with China's southern city of Dongguan to build the first complete supply chain for sustainable aviation fuel (SAF) in the Greater Bay Area.
Here are some details:
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EcoCeres' new Dongguan facility is expected to produce a total of around 450,000 tons annually of SAF and hydrotreated vegetable oil (HVO).
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The Hong Kong-Dongguan partnership will create an integrated end-to-end model: waste-based feedstock collection across China's Greater Bay Area, refining and production in Dongguan, and blending, refueling, and trading operations in Hong Kong.
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The agreement marks a significant milestone in cross-regional collaboration to advance green energy development and strengthen energy independence, Ecoceres said in a statement.
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The Hong Kong government last year said it would collaborate with mainland authorities to accelerate the adoption of green technologies, and foster an industrial chain for it.
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The city has set a target to require departing flights from its airport to use specified proportion of SAF by 2030.
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Ecoceres was incubated by Hong Kong's city gas company Towngas in 2008, and Bain Capital became a major investor in 2022.
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The firm currently has plants in Zhangjiagang, China and Johor Bahru, Malaysia. It won Chinese government export quotas last year as China began regulating its nascent SAF market.
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Ecoceres is shipping most of its SAF and HVO to western destinations such as Europe, Kpler shiptracking data showed, with both Malaysia and China not having any mandates for SAF usage as of now.
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