The biodiesel industry is about to usher in a period of production capacity explosion. The development of the domestic market depends on policy guidance.

Biodiesel refers to a renewable diesel fuel made from vegetable oils and animal oils through a transesterification process. Biodiesel raw materials are rich in sources and can be obtained from cottonseed, rapeseed, soybeans, rice bran and animal fats. In addition, oil extraction waste residue and catering waste oil (the so-called waste oil) can also be used. The performance of biodiesel is very similar to that of ordinary diesel. It is known as “green diesel” and is a high-quality substitute for petrochemical fuels. It has the characteristics of wide sources of raw materials, good fuel performance, renewable, green and environmentally friendly, and can be used for heavy trucks and ship transportation. Waiting for fuel.

In recent years, China’s biodiesel industry has developed well based on good market prospects and policy support. In February 2022, the country issued the “Opinions on Improving the System, Mechanism and Policy Measures for Energy Green and Low-Carbon Transformation”, which for the first time explicitly supported the development of biodiesel in the form of regulations and required “to improve the clean and efficient utilization mechanism of oil and gas. While meeting safety and quality requirements” Under the premise of meeting standards, support clean fuels such as biofuel ethanol, biodiesel, and bionatural gas to be connected to the oil and gas pipeline network.” Previously in May 2021, the “14th Five-Year Plan for the Development of Urban Domestic Waste Classification and Treatment Facilities” issued by the state proposed to “actively promote kitchen waste resource utilization technology and rationally use kitchen waste to produce biodiesel.” “Thanks to China’s huge catering industry and heavy oil eating habits, China produces a large amount of waste oil, namely gutter oil, which provides abundant raw materials for the development of China’s biodiesel industry.

Driven by policies, demand, raw materials and other factors, China’s biodiesel industry has developed rapidly and has formed several large-scale biodiesel production companies, such as Zhuoyue New Energy, Jia’ao Environmental Protection, Haixin Energy, Hebei Jingu, etc., with a few leading companies The company occupies an important share of the industry’s production capacity, and the industry’s production capacity is relatively concentrated. In June 2022, Jia’ao Environmental Protection’s new 200,000-ton biodiesel project was put into production. Coupled with the production capacity of Zhuoyue New Energy and other companies that are about to be put into production, China’s biodiesel industry is about to usher in a production capacity explosion. Expect. According to the released “2022-2026 China Biodiesel Market Survey and Industry Analysis Report“, at the end of 2022, China’s biodiesel industry The production capacity is nearly 3 million tons per year, and the planned production capacity is more than 4 million tons.

​Compared with the rapidly growing domestic biodiesel production capacity and output, China’s biodiesel demand is smaller, and the market potential has yet to be released. This has led to China’s biodiesel being dependent on foreign markets, especially European markets such as the Netherlands and Spain, which are the main export destinations and markets for China’s biodiesel and its raw materials – oils and fats. Analysts believe that the release of biodiesel market potential depends on national energy policies and legislation. In the future, with the improvement of China’s environmental protection policies As China becomes more stringent and promotes its carbon neutrality strategy, China may strengthen legislation in the field of diesel consumption, thereby promoting the growth of China’s biodiesel market demand.