In recent years, under the guidance of China’s “dual carbon” goals, carbon peaking and carbon neutrality, the development of green and low-carbon energy has accelerated significantly. As an important component of renewable energy, the biodiesel industry is entering a new stage of growth. Against this backdrop, Zhoushan’s key biofuel project is progressing steadily, injecting new momentum into the region’s green energy industry.
The project is a major construction initiative in Zhoushan, with a total planned investment exceeding €246 million. It will be implemented in two phases.
Phase I involves an investment of approximately €98.6 million and covers an area of 9.17 hectares. It includes the construction of two 200,000-ton-per-year biodiesel production units, facilities for blending 1 million tons per year of marine biofuel, as well as office buildings, an R&D and control center, and supporting public utility infrastructure. Phase II will construct a 100,000-ton-per-year bio-jet fuel (component) production unit. Upon full completion, the project will establish an integrated production capacity of 400,000 tons of biodiesel, 100,000 tons of bio-jet fuel, and 1 million tons of blended marine biofuel annually.
As the first green and environmentally friendly biomass fuel project in Zhoushan, it fills the gap in biodiesel feedstock supply for marine fuel oil within the Zhejiang Free Trade Zone. The project will strengthen and extend the local oil and gas industrial chain. Once operational, it will effectively address the insufficient supply of marine biofuel in the Zhoushan area and promote the development of green marine fuel bunkering services.
The project is invested and developed by Ningbo Jiesen Green Energy, a high-growth “gazelle” enterprise specializing in green fuel production in China. The company has accumulated extensive technical expertise in the green fuel sector. Its subsidiary, Zhejiang Tianfu Hongyun Energy, focuses on biodiesel, bio-jet fuel, and marine biofuel products.
Since construction began in July 2024, progress has been smooth. As of August 2025, approximately 49% of the annual investment plan had been completed, intermediate structural acceptance had been finalized, and 85% of civil engineering works had been completed. Trial production is expected in the first quarter of 2026. Once completed, the project will significantly reduce Zhoushan and surrounding areas’ long-term dependence on imported marine biofuels.
Zhoushan’s development of the biofuel industry aligns closely with national policy priorities.
In July 2023, China’s Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Commerce jointly issued the Work Plan for Stabilizing Growth in the Light Industry (2023–2024), which emphasized expanding biomass energy applications, implementing energy-saving and carbon-reduction technological upgrades, and promoting green transformation across industries.
On April 2, 2024, the National Energy Administration released a notice announcing pilot programs for the promotion and application of biodiesel. A total of 22 pilot projects were approved nationwide, with two additional pilot programs located in industrial parks, including the Guang’an Economic and Technological Development Zone and the Zhoushan Free Trade Zone. Industry experts widely believe this marks a solid step forward in China’s biodiesel development and provides new impetus for optimizing the national energy structure.
Leveraging Zhoushan Port,the world’s largest port by cargo throughput,the Zhoushan Free Trade Zone has vast potential demand for biodiesel. In 2023, Zhoushan completed China’s first offshore biofuel bunkering for a container vessel and the country’s largest single biofuel bunkering operation, demonstrating strong market prospects.
On February 9, 2026, China’s Ministry of Commerce approved Zhoushan’s pilot program for exporting blended marine biofuel. A regulatory framework for blending supervision was introduced simultaneously. Zhoushan is now preparing for its first pilot transaction, aiming for completion by the end of February. According to fuel suppliers, local blending can reduce costs by approximately USD 80 per ton compared to imports. Beyond direct cost savings, the policy will also enhance coordination across the industrial chain and strengthen overall competitiveness.
Fuel accounts for roughly 30% of vessel operating costs. In the past, some ocean-going vessels sailed to overseas ports for refueling in order to reduce costs. With the implementation of Zhoushan’s blending export policy, domestic marine fuel bunkering costs are expected to decline, enhancing China’s competitiveness in the global green fuel market.
From a broader perspective, biodiesel is becoming a key solution in the global energy transition. Amid mounting ecological challenges and increasing pressure for sustainable development, biodiesel,characterized by wide feedstock availability, renewability, strong combustion performance, and significant emission-reduction effects,has emerged as an important alternative to traditional fossil fuels.
Biodiesel is recognized as a strategic emerging industry in China, encompassing renewable energy, bio-industry, and comprehensive utilization of waste resources. Producing biodiesel from waste oils not only addresses the safe collection and utilization of used cooking oil and other waste grease, but also supplies downstream markets with environmentally friendly renewable energy. In recent years, China has strengthened the collection, storage, transportation, and regulatory systems for waste oils, resulting in more feedstock flowing into the biodiesel industry and driving rapid production growth.
Experts note that promoting biodiesel is an important pathway for the petrochemical sector to achieve carbon reduction targets. Once traditional fossil diesel is refined and distributed, it is difficult to alter its carbon-hydrogen ratio to reduce emissions. However, blending biodiesel provides an effective way to lower carbon intensity without changing existing infrastructure. China’s promotion of ethanol gasoline in the gasoline sector and biodiesel in the diesel sector represents a strategic adjustment of product structure to reduce carbon dioxide emissions.
Notably, China’s biodiesel industry has developed largely under market-driven mechanisms. Despite limited long-term subsidy support, enterprises have grown through technological innovation and market competition, mastering advanced and internationally competitive technologies. The industry has demonstrated strong resilience and growth potential.
Looking ahead, high-quality development of the biodiesel sector will require continued efforts in feedstock security and market expansion.
Upstream, China should strengthen the supply of edible vegetable oils, expand oilseed cultivation areas, enhance seed development and application, and promote soybean and oilseed production capacity improvement programs to increase self-sufficiency. At the same time, leveraging Belt and Road cooperation can help diversify import channels and broaden the range of oil and fat products.
For non-edible feedstocks, efforts should focus on expanding resource sources and improving utilization efficiency. High-yield, fast-growing, and resilient oil-bearing tree species,such as tung tree, Chinese tallow, jatropha, pistacia chinensis, and yellowhorn,can be cultivated in mountainous and hilly areas. Encouraging the use of non-edible plant oils and improving the classification and recycling systems for kitchen waste will further increase feedstock supply. Enterprises should be supported in utilizing used cooking oil, waste grease, and by-products from oil processing for biodiesel production.
On the demand side, active implementation of the 14th Five-Year Bioeconomy Development Plan is essential. Demonstration projects for cellulosic ethanol, biodiesel, and biogas should be promoted in areas with concentrated organic waste resources. By improving biomass collection systems and expanding production scale, the industry can achieve greater efficiency. Pilot programs in suitable regions and demonstration applications for sustainable aviation fuel will help further expand domestic biodiesel consumption.
Overall, the Zhoushan biofuel project represents not only a milestone in regional industrial upgrading, but also a microcosm of China’s broader green energy transition. With continued policy support, expanding market demand, and ongoing technological advancement, the biodiesel industry is poised to play an increasingly vital role in achieving carbon peaking and carbon neutrality goals.
Source: sohu, cnbiofuel, zjnews, tidenews, sdxw, investchn
