Jiaao, a biofuel company in China, has brought BP on board as an investor for its SAF unit

Zhejiang Jiaao Enprotech, a Chinese biofuel company, announced on Friday that its sustainable aviation (SAF), unit had entered into an investment agreement with BP. This is the first time a global oil giant has invested in China's green aviation fuel.

BP will invest 354 million yuan (49.56 millions) in Lianyungang Jiaao Enproenergy Co., which is building a 500,000 tons per year SAF facility in the eastern coast city of Lianyungang.

Jiaao was one of the first investors in China to invest more than $1 billion in turning waste cooking oil, which is a high-carbon fuel, into aviation fuel that can be exported and used for domestic use.

China is the second largest aviation fuel market in the world, accounting for about 11% global jet fuel consumption.

Jiaao announced its investment agreement with BP late Thursday on its WeChat page.

One of China's biggest biodiesel producers, the company counts Shell, Exxon Mobil, and TotalEnergies as clients.

According to Airbus, burning sustainable aviation fuel reduces CO2 emissions around 80% when compared with traditional jet fuel.

Beijing has called on the promotion of sustainable aviation fuel but hasn't rolled out any domestic mandates or subsides, and China's modest biofuel production is largely exported.

BP, one of the world's largest oil companies, is investing in cleaner energy. Recent plans include building facilities in Spain and Germany which could create green hydrogen and sustainable jet fuel. Reporting by Chen Aizhu and Liz Lee; Editing by Himani Sakar and Michael Perry.

(source: Reuters)