New HVO plant enters into operation in China


Type of post: NEWS.

According to S&P Global Platts, last month, State-owned energy company Beijing Sanju Environmental Protection & New Materials launched a 400 ktons/year capacity HVO plant in Rizhao (Shandong, China) province. The biorefinery utilizes used cooking oil (UCO) and palm oil mill effluent (POME) as feedstocks.
HVO posts.

Figure 1. Beijing Sanju, current and planned HVO plants (source: S&P Global Platts Analytics)

The new HVO plant (Shandong Sanju Bioenergy) was the result of a cooperation agreement (07/04/2020) between Beijing Sanju (primary owner, investor and tech provider), Hainan Qilu Development (investor and subsidiary of Qilu Transportation Development Group) and the Juxian County Government (minority owner, fixed assets). Shandong Sanju Bioenergy produces HVO via suspension bed hydrogenation, a process that is mostly used for heavy residual oils that have impurities (such as metals), which could spoil the catalyst necessary for fuel production.

Beijing Sanju operates other HVO plants:
- Location: Hebi Huashi United Energy Technology plant in Henan province. Estimated production capacity: 60 ktons/year initially, doubled to 100-120 ktons/year in August 2020. The plant operates as a joint venture between Beijing Sanju (catalyst technology, financing and product distribution) and Hebi Huashi (fixed assets and labor). It is scheduled to produce 100 ktons/year over the next three years.
- Location: Hainan Huanyu New Energy plant in Lingao, Hainan island. Estimated production capacity of 40 ktons/year.
All three of Beijing Sanju's HVO plants have valid International Sustainability and Carbon Certifications (ISCC), meaning their HVO exports are compliant with Europe's Renewable Energy Directive (RED). Platts Analytics estimates HVO demand to grow in Europe from 2.316 Mtons (51,164 b/d) in 2021 to 2.698 Mtons (59,617 b/d) by 2025.

Beijing Sanju plans to establish a new plant. Location: Beihai, southern Guangxi region. Estimated capacity: 1 Mton/year. It is currently undergoing an environmental impact review. Beijing Sanju is also planning to establish a subsidiary in Malaysia to procure a steady supply of HVO feedstock including UCO, gutter oil, tallow and POME/PAO.

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