欧宝体育

1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Bio aviation fuel, also known as bio aviation fuel or bio jet fuel, is developed based on the biodiesel technology. It adopts independently developed hydrogenation technology, catalyst system, and process technology to produce aviation kerosene from various animal and vegetable oils and fats. Compared to traditional petroleum based aviation kerosene, bio aviation kerosene has significant advantages: firstly, it is renewable and sustainable; secondly, there is no need to modify the engine, making it less difficult to promote; thirdly, compared with traditional petroleum-based aviation kerosene, bio aviation kerosene can reduce carbon emissions by more than 50% throughout its entire lifecycle, demonstrating extremely high environmental benefits. For the aviation industry, bio aviation kerosene not only helps reduce dependence on fossil fuels, but also achieves carbon neutrality through biomass, reducing carbon emissions throughout the lifecycle. The expected annual output of this project is 150000 tons of green aviation fuel.

1.1.2 Market prospect

(1) The current situation of the overseas market for bio aviation fuel

The development trend of bio aviation fuel in the international market is characterized by active promotion and rapid growth. Taking South Korea as an example, the government has formulated a plan that starting from 2027, all international flights departing from South Korean airports must use at least 1% sustainable aviation fuel (SAF). This measure highlights South Korea’s determination to promote the application of bio aviation fuel, aimed at reducing carbon emissions in the aviation industry.

On a global scale, the production and consumption of bio aviation fuel are showing an increasing trend year by year. In 2022, the global production of biofuels reached 1914 thousand barrels of oil equivalent per day, while in 2023, the production was close to 2000 thousand barrels of oil equivalent per day. In terms of consumption, in 2022 it was 1933 thousand barrels of oil equivalent per day, while in 2023 it was approximately 2087 thousand barrels of oil equivalent per day. The market size is also continuously expanding, approaching $120 billion in 2023 and expected to have exceeded $170 billion by 2030.

The international market for bio aviation fuel is experiencing significant growth, mainly due to the strong demand of the global aviation industry for reducing carbon emissions. Many countries and airlines are actively seeking sustainable aviation fuel solutions to reduce dependence on traditional fossil fuels. Europe is a leader in the biofuel market, with countries such as the Netherlands, France, and Germany at the forefront of biofuel research and application. The United States is also accelerating the commercialization of bio-based aviation fuel, and some airlines have started using blended fuels containing bio components for commercial flights. In addition, the Asian markets, especially China and India, are expected to become one of the fastest-growing regions in the biofuel market due to their large aviation markets and government support for renewable energy. Although the cost of bio aviation fuel is currently higher than traditional aviation fuel, with the continuous advancement of technology and large-scale production, it is expected that the cost will gradually decrease, and the market potential is enormous.

(2) The current situation of domestic market for bio aviation fuel

China is a country highly dependent on imports for energy, with an annual import of about 1 billion tons of oil and natural gas, of which 60% needs to enter the country through the Strait of Malacca. This has become a serious “bottleneck” issue facing China, and energy security is crucial. At the same time, the shipping industry is committed to achieving a green and low-carbon transformation through bio based low-carbon fuels, including the use of agricultural waste and household garbage for hydrogen production, green and renewable electrolysis of water for hydrogen production, and the synthesis of green liquid fuels, especially aviation fuels, which are in a severely scarce seller’s market worldwide. Many airlines are purchasing bio based aviation fuel in order to fulfill their carbon reduction commitments, including not only traditional bio based aviation fuel extracted from gutter oil, but also advanced synthetic green renewable aviation fuel (SAF).

China is actively promoting the development of sustainable aviation fuel (SAF) and has established the country’s first Sustainable Aviation Fuel Technology Center, dedicated to standard setting and product research. In addition, the global production and consumption of biofuels are also increasing year by year, and the market size continues to expand.

The Civil Aviation Administration of China announced the establishment of the first sustainable aviation fuel technology center in China, located in Chengdu, dedicated to standard setting and product research. The goal of the center is to establish a sustainable fuel certification system in China and establish testing facilities for new products. It is expected that by 2030, the total consumption of aviation fuel in China may have exceeded 50 million tons per year, of which the use of SAF may have reached 2.5 million tons per year.

(3) International market supply and demand and forecast of bio aviation fuel

The supply and demand of bio aviation fuel in the international market are showing a rapid growth trend, mainly due to the increasing global attention to environmental protection and sustainable development, as well as active support from government policies. According to relevant reports, the global market size of bio aviation fuel is expected to have grown to RMB 761.472 billion by 2029, with an estimated compound annual growth rate of 6.57%.

The production raw materials of bio aviation fuel mainly include renewable resources such as catering waste oil, animal and vegetable fats, and agricultural and forestry waste. These raw materials are widely distributed worldwide, laying a solid foundation for the production of bio aviation fuel. Compared to traditional petroleum-based aviation kerosene, biofuel can reduce carbon dioxide emissions by over 50% throughout its entire lifecycle, demonstrating significant environmental benefits.

The growth in demand for bio aviation fuel in the international market is mainly driven by the aviation industry’s carbon reduction targets. As organizations such as the International Civil Aviation Organization and the International Air Transport Association propose and implement carbon reduction targets and pathways for the aviation industry, the demand for bio aviation fuel, as one of the green aviation fuels, is expected to continue to rise. Especially in the Asia Pacific region, with the increasing awareness of environmental protection and government policy support, the market demand for bio aviation fuel has grown particularly prominent.

Looking ahead, we can see the development of the bio aviation fuel market will be further driven by both technological advancements and policy support. With the continuous optimization of production technology and the gradual reduction of costs, the market competitiveness of bio aviation fuel is expected to further enhance. Meanwhile, the strengthening of international cooperation and technological exchanges will also bring more opportunities for the international market expansion of bio aviation fuels.

(4) Domestic market supply and demand situation and forecast of bio aviation fuel

As an emerging green energy source, bio aviation fuel has developed rapidly in the domestic market in recent years, with frequent changes in supply and demand. According to the latest report, the market size of bio aviation fuel in China has reached 163.7 billion yuan in 2023, and is expected to grow to 761.472 billion yuan by 2029, with an expected compound annual growth rate of 6.57% during this period. This growth trend highlights the crucial role that bio aviation fuels play in addressing climate change and reducing the environmental impact of the aviation industry.

With the increasing global attention to climate change and the growing demand for sustainable development, the demand for bio aviation fuel in the domestic market is steadily rising. Thanks to its environmental characteristics and sustainability, bio aviation fuel is gradually gaining market favor. According to relevant reports, the demand assessment and growth potential of bio aviation fuel are enormous, and it is expected that the market demand will continue to expand in the future.

1.1.3 Technical analysis

The technical characteristics of the bio aviation fuel project cover raw material selection, conversion process, environmental performance, and the technical challenges faced. This project utilizes biomass resources such as gutter oil, waste animal and plant oils, and agricultural and forestry waste as raw materials, and converts them into aviation fuel through a series of specific processes. Bio aviation fuel has demonstrated the excellent environmental performance, with over 50% reduction in carbon dioxide emissions throughout its lifecycle compared to traditional petroleum-based aviation kerosene.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Notice on Organizing Pilot Demonstrations for the Promotion and Application of Biodiesel clearly states that by carrying out pilot demonstration projects for biodiesel, the application scope of biodiesel in China will be expanded, and a replicable and promotable policy framework and development model will be explored.

The Notice of the Comprehensive Department of the National Energy Administration on Publicizing Pilot Projects for the Promotion and Application of Biodiesel proposes that in order to promote the recycling of waste and accelerate the green and low-carbon transformation of the energy industry, 22 pilot projects for the promotion and application of biodiesel have been announced.

The 14th Five-Year Plan clearly proposes the goal of developing sustainable aviation fuels and promotes the widespread application of bio aviation fuels through the signing of cooperation agreements. These policy measures specifically include the following:

Provide financial support and technical guidance to support technological innovation and cost reduction.

Ensure the sustainability of raw material supply by encouraging the use of renewable resources such as waste cooking oil.

These policies and measures provide solid support for the development of bio aviation fuel projects, promoting the smooth implementation and sustainable development of the projects.

(2) Industrial advantages

Rongguang Biotechnology Co., Ltd. is a modern and innovative enterprise that integrates research and development, production, and sales of biodiesel. It is also a leading enterprise in the comprehensive utilization of waste oil resources in China. The company adopts the independently developed continuous production technology and equipment, using waste oil as the main raw material for resource utilization and turning waste into treasure. It has multiple production lines, including an annual output of 100000 tons of BD100 biodiesel, 150000 tons of acidified oil through soap cone deep processing, and an annual output of 50000 tons of epoxy fatty acid methyl ester. The main products include biodiesel (fatty acid methyl ester), plasticizers (epoxy fatty acid methyl ester), new biochar sources (refined glycerol), and several other series. The company has passed the “ISCC” international sustainable development and carbon certification, and BD100 biodiesel has passed the SVHC testing of the European Union and REACH regulations. Its sales network covers the whole country and is exported to multiple countries and regions such as the European Union, gaining recognition and trust from customers.

(3) Location advantages

Changchun Jiutai Economic Development Zone is located in the overlapping area of two pilot zones in Jilin Province and Changchun City, and has become a priority development zone for the two pilot zones in Jilin Province and Changchun City. The development zone is located in the Northeast Changchun Opening and Development Pilot Zone, adjacent to Changchun Airport Economic Demonstration Zone, Changchun Comprehensive Bonded Zone, Changchun Lianhua Mountain Tourist Resort and China South Korea International Cooperation Demonstration Zone. It is located in the geometric center of Northeast Asia, at the strategic intersection of Harbin-Dalian Economic Belt and China-Mongolia Economic Corridor, and is an important window for the country’s “Belt and Road” opened to the north along the border. ‌

The development zone borders Kuancheng District and Changchun Economic and Technological Development Zone to the west, Erdao District and Shuangyang District to the south, Dehui City in Jilin Province to the north, and Jiutai District across the Yinma River to the east. The development zone is located on the Changchun-Jilin Economic Belt and is an important “support point” and “relay station” for the eastward and westward integration of the Changchun-Jilin economy.‌

(4) Talent advantages

Changchun is a well-known high intelligence intensive area in China, with more than ten key universities such as Jilin University, Northeast Normal University, and Changchun Institute of Optics and Fine Mechanics located in Changchun. It also has national and provincial (ministerial) scientific research institutions such as Changchun Branch of the Chinese Academy of Sciences , Changchun Institute of Optics and Fine Mechanics, Changchun Institute of Applied Chemistry, as well as scientific research institutions such as design institutes, computing and testing centers, and several key open laboratories in Changchun. Changchun City has abundant human resources and price advantages. Higher education institutions and research institutions such as Jilin University, Northeast Normal University, Changchun University of Traditional Chinese Medicine, Changchun Institute of Optics and Fine Mechanics, and Changchun Institute of Applied Chemistry can provide senior management and technical personnel for the implementation of the project.

Changchun City has established a “one institute, one association, two alliances” for low-altitude economy, forming a low-altitude economy think tank system. The heads of internal institutions in the system are cross appointed to achieve “sharing, co-construction, and co-creation”. The Changchun Low-altitude Economy Research Institute is responsible for coordinating the think tank system, while the Changchun Aerospace (Low-altitude) Economy Expert Committee is responsible for liaising with academicians, universities, and key enterprises in the field of low altitude economy, enriching and improving the list of expert committee members, and providing intellectual support for the development of low altitude economy in the city and even the whole province. The Changchun Aerospace (Low-altitude) Economic Development Talent Training Alliance is responsible for formulating talent training plans and systematically cultivating low altitude economic talents. The Changchun Aerospace (Low altitude) Economic Development Industry Alliance is responsible for contacting and communicating with enterprises related to the low altitude economy, promoting industrial agglomeration and development. Its member units cover 13 related industries such as drone research and development, manufacturing and application, drone logistics and distribution. It can provide intellectual support for the project. ‌‌

1.2 Contents and scale of project construction

Covering an area of about 70 acres, the main construction contents include the oil neutralization pre-treatment system, methyl ester production system, methyl ester hydrogenation distillation system, glycerol refining system, etc., as well as supporting transformer and distribution room, production control room, machine repair workshop, loading and unloading yard, tank area, storage and transportation yard, fire-fighting facilities, air separation and compression, water treatment station, accident and rainwater collection and other auxiliary facilities, with the annual production of 150000 tons of green aviation fuel.

1.3. Total investment of the project and capital raising

The total investment of the project is 1.2 billion yuan, including the construction investment of 930 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 800 million yuan, its profit will be 240 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its return on investment will be 20%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The social benefits of the project are mainly reflected in reducing carbon emissions, promoting resource recycling, driving technological innovation and industrial upgrading, and enhancing environmental sustainability. ‌

Firstly, the bio aviation fuel project contributes to reducing carbon emissions and addressing climate change. Bio aviation fuel is an aviation fuel produced from biomass such as animal and vegetable oils or agricultural and forestry waste through hydrogenation or Fischer Tropsch synthesis technology. Its carbon emissions throughout its entire lifecycle are 85% lower than traditional fossil fuels, which means that aircraft using biofuel will produce less greenhouse gas emissions during flight.

Secondly, the project promotes the recycling of resources. The raw materials for bio aviation fuel are widely sourced, including renewable resources such as gutter oil, catering waste oil, and vegetable oil. These resources, which were originally considered waste, are transformed into high-quality bio aviation fuel through complex processing and extraction processes, achieving the reuse of waste.

In addition, the bio aviation fuel project has promoted technological innovation and industrial upgrading. With the advancement of technology, advanced technologies such as cellulose production of ethanol and seaweed extraction are constantly breaking through, providing possibilities for improving the production efficiency and reducing costs of bio aviation fuel. This not only promotes technological progress, but also drives the development and upgrading of related industries.

Finally, the project has enhanced environmental sustainability. The use of bio aviation fuel reduces dependence on fossil fuels and mitigates the negative impact of the aviation industry on climate change. With the global emphasis on environmental protection, bio aviation fuel has gradually become an important choice for reducing emissions in the aviation industry, promoting the green and low-carbon development of the aviation industry.‌

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds and other methods can be discussed in person.

1.7 Construction site of the project

Changchun Jiutai Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Rongguang Biotechnology Co., Ltd.

Address: North of Zhaishizhuang Village, Tianqu Industrial Park, Decheng District, Dehui City

2.2 Unit overview

Dezhou Rongguang Biotechnology Co., Ltd. was established on April 10, 2012, with its registered address located in the north of Zhaishizhuang Village, Tianqu Industrial Park, Decheng District, Dezhou City. The legal representative is Li Rongguang. The  scope of business includes general projects: biomass energy technology services; biomass fuel processing; recycling of renewable resources (excluding productive waste metals); non-metallic waste and debris processing; manufacturing of specialized chemical products (excluding hazardous chemicals); non-residential real estate leasing; import and export of goods; technology import and export; coal to activated carbon and other coal processing; processing of renewable resources; comprehensive utilization of agricultural, forestry, animal husbandry and fishery waste; sales of charcoal and firewood; sales of graphite and carbon products.

2.3 Contact method

Contact person: Wang Qi

Tel: +86-431-82338212

Contact method of the city (prefecture) where the project is located:

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com