July 11, 2024 [Biofuels International]- BP will invest $48.54 million (€44 million) to acquire a 15% stake in Lianyungang Jiaao New Energy – a renewable diesel and sustainable aviation fuel producer.

The company is owned by Zhejiang-based Jiaao Enprotech, S&P Global reported.
Jiaao Enprotech has 100,000 mt/year of SAF capacity with China possibly announcing SAF mandates in the near future.
China’s Civil Aviation Administration drafted a fuel standard last year to ensure the viability of alternative fuels in the aviation sector.
Global consumption of SAF reached 450,000-500,000 mt in 2023, double the previous year’s volume, yet it accounted for only 0.1% of total jet fuel consumption, based on the International Air Transport Association figures.
Global consumption of SAF is projected to reach 2.1 million b/d by 2050, displacing nearly 24% of global jet fuel demand.
In 2023, the annual global production of SAF was approximately 2.24 million mt (48,500 b/d), with China contributing 298,000 mt (6,500 b/d), according to S&P Global Commodity Insights data.
Meanwhile, policy initiatives around the world are expected to drive a significant increase in SAF demand. SAF projects could reach 600,000 b/d capacity by 2030, depending on the policy support for investments.
The oil and gas major has scaled back new SAF and renewable diesel projects at existing sites, pausing two projects, including a standalone biofuels unit at its Lingen refinery in Germany, while continuing to assess three others.
The company will proceed with standalone biofuels projects in Australia (Kwinana), Spain (Castellon) and the Netherlands (Rotterdam).

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