Several Chinese builders of sustainable aviation fuel (SAF) plants are postponing start up as a lack of government policy guidance restrains them from marketing the fuel domestically or exporting it.
Reuters reported last May that companies were investing more than $1 billion to build China’s first plants to turn waste cooking oil into aviation fuel for export and for domestic demand once Beijing requires its use to cut emissions.
However, Beijing has yet to announce the mandatory use of the lower-carbon fuel for the world’s second-largest aviation fuel market, disappointing industry expectations. Companies were hoping that by the end of 2024 the government would issue requirements for 2% to 5% of SAF mixed with traditional jet kerosene by 2030.
Privately led Tianzhou New Energy and Jinshang Environmental Protection Tech, which are each building SAF plants in southwestern Sichuan province, have pushed-back target dates for first production, company executives said.
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