China to launch pilot projects to boost biodiesel use
China is set to initiate a series of pilot projects aimed at increasing the production and consumption of biodiesel, as announced by the National Energy Administration (NEA). The move is part of the country’s efforts to strengthen environmental initiatives, addressing a sector where it currently lags behind other major economies.
The National Energy Administration is an agency of the State Council of the People’s Republic of China. It is responsible for energy conservation, integrated use of natural resources, drafting laws and regulations concerning energy development, formulating industrial policies and standards related to various energy sources, promoting scientific and technological advancement related to the energy industry, and assuring energy security.
The consumption of biodiesel in China has been relatively low due to limited policy support, in contrast to the European Union and the United States. Biodiesel, which serves as a low-carbon substitute for petroleum diesel, is derived from feedstocks such as palm oil and used cooking oil (UCO).
In a recent directive, the NEA has called upon local authorities to conduct demonstration projects across various segments of the biodiesel industry and advised regional governments to extend financial assistance. The administration expressed its intention to broaden the application scenarios of domestic biodiesel and establish a replicable development path to facilitate the ongoing promotion of eco-friendly liquid fuels.
The proposed efforts encompass the integration of the UCO feedstock supply chain, along with the distribution of biodiesel at highway petrol stations. Additionally, the NEA has committed to advocating for the inclusion of biodiesel in a voluntary national certified emission reduction mechanism.
While specific details regarding financing and timelines were not provided by the NEA, the initiative underscores China’s push to expand the use of biodiesel domestically. Notably, the country has yet to announce blending mandates for biodiesel, with only the local government of Shanghai offering subsidies for biodiesel production.
