Latest News:  
Beijing   Sunny/Cloudy    32 / 23 ℃  City Forecast

English>>China Business

Sinopec unit ready to produce biofuel

By Liang Fei (Global Times)

08:24, August 06, 2012

A unit of China Petrochemical Corp (Sinopec Group), China's largest oil producer by sales revenue, is seeking to produce aviation fuel from used cooking oil, The Economic Observer reported Saturday, citing a company official inside the unit.

The Zhejiang-based Sinopec Zhenhai Refining & Chemical Co has a capacity of producing 20,000 tons of aviation biofuel from used cooking oil each year, according to the report.

The unit, which is the largest refinery of Sinopec, has completed production trials and is expected to be ready for reviews by China's aviation authorities in January, which will be an important step before the biofuel can be used in commercial flights.

"The cost of extracting biofuel from waste cooking oil and whether the fuel can be produced at a massive scale are two key factors that could hinder the market penetration of such fuel," Zou Jianjun, a professor at the Civil Aviation Management Institute of China, told the Global Times on Sunday.

However, the cost to refine waste cooking oil is still 1.5-2 times higher than the cost of regular jet fuel, and an annual production capacity of 20,000 tons is still very small considering the total demand, according to experts.

Experts noted that biofuel-powered airlines to and from Europe will be exempted or partly exempted from the European Union's carbon tax for airlines, a practice that may encourage carriers to use more biofuel in their flights.

"But if the use of biofuel derived from gutter oil involves higher costs than the carbon tax, airlines will be reluctant to use the biofuel to power their flights," Zou noted.

Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University, told the Global Times that selling gutter oil to restaurants generates much higher profit in China, though it is illegal.

"Competition from small restaurants can push up the cost to refine used cooking oil for energy companies, while the supply is also not guaranteed," said Lin.

The Economic Observer report said that currently the Sinopec unit is talking with restaurant chains such as McDonald's for the supply of used cooking oil.

A growing number of airlines are now trying to tap biofuel in a bid to cut emissions. UK-based Thomson Airways and KLM Royal Dutch airlines have both successfully launched flights that use aviation fuel derived from cooking oil.

"But in China, a bigger issue is how to stop gutter oil from being used again in restaurants," said Lin.

Lin further noted that the market alone can not guarantee a healthy recycling process for used cooking oil and stronger government supervision is also crucial.

News we recommend:
Luxury brands continue to cash in on China market Rare earth regulation justified Growth to bounce back in H2
Lamborghini sees 20-30% rise in supercar sales Ad campaigns are competing hard in London Major lenders broaden horizons and flex financial muscles
Chinese airlines buck global downturn  Software outsourcing on upward curve Realty policy clarification required

Email|Print|Comments(Editor:李倩)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Chinese navy ship visits Bulgaria

  2. Sculpture of Nelson Mandela unveiled in S. Africa

  3. Mascot maker feels pinch of rising labor costs

  4. Sand painting contest held in Zhoushan, China's Zhejiang

  5. Weird body art

  6. Places in China---Chéngdū

Most Popular

Opinions

  1. Editorial: Mission for eurozone leaders
  2. UN resolution adds pressure to Syria gov't
  3. What is wrong with products made in China?
  4. Indian blackout: result of neglect of livelihood
  5. Editorial: Economic food for thought
  6. Detachment no serves China's interest in ME
  7. US sanctions on China's bank ridiculous
  8. Editorial: Do business, not politics
  9. Arrival of Chinese fleet rattles EU
  10. India’s blackout offers lesson to China

What's happening in China

First BRT line to be completed in NW China's Yinchuan

  1. Haikui approaching China's eastern coast
  2. 79 dead in Beijing devastating rainstorm
  3. China nabs 137 for organizing organ sale
  4. Officials warn against poison mushrooms
  5. Policy flaws make low-income housing unpopular

China Features

  1. Why Hollywood favores China's actresses?
  2. Dongfeng Honda to recall 76,000 CR-Vs
  3. How to protect yourself during heavy rainstorms?
  4. Are synthetic drugs toxic?
  5. Amway vitamin C tablets short in weight

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai