On November 13, 2023, the National Energy Administration issued a notice promoting biodiesel pilot projects across various fields and regions to gather experience for further expansion. This policy clearly encourages biodiesel development, potentially offering significant support to the market.
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The notice specifies biodiesel use in public transport, logistics, sanitation, postal services, refueling stations, and maritime applications. The trial regions include provinces, cities, industrial parks, and more. The operation mode encourages "production-based sales, closed operation," ensuring controlled coordination between production and demand.
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Biodiesel offers environmental and low-carbon benefits by achieving a closed carbon cycle. It helps reduce reliance on fossil fuels, minimize environmental pollution, and supports the circular economy by utilizing agricultural waste and waste oils.
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Biodiesel production has evolved through two generations of technology. The second generation, involving hydrogenation processes, is highly mature, producing biodiesel with properties closer to petro-diesel, suitable for various applications.
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The global biodiesel market has grown significantly, with a compound annual growth rate of about 9% from 2006 to 2023. In China, although the production scale is smaller, the market has also seen rapid growth. With policy support and approaching carbon peak targets, China's biodiesel market is expected to grow rapidly.
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