Chinese biodiesel leader Zhuoyue New Energy has announced plans to invest CNY700 million (USD97.6 million) to build a major biofuel production facility in Thailand’s Chonburi province, marking a significant step in the company’s global expansion strategy, reports Yicai Global.
The project will be developed in two phases, according to a company statement issued yesterday. The first phase is set to produce 300,000 tons of biodiesel annually and is expected to be completed within 12 months. The second phase will add capacity for 100,000 tons per year of either hydrotreated vegetable oil (HVO) or sustainable aviation fuel (SAF), both of which are key fuels in the global low-carbon transition.
Zhuoyue has already cleared key regulatory hurdles for the project. The company has secured offshore investment registration from Chinese authorities, received approval from Thailand’s Board of Investment, and finalized a land lease agreement for the construction site.
Headquartered in Fujian province, Zhuoyue is widely recognized as China’s pioneer in industrial biodiesel production from waste oils. It has consistently held the top position in the country in terms of biodiesel output, sales, and exports, and maintains a stable supply network for waste oils across China and Southeast Asia.
In 2023, Zhuoyue sold 376,000 tons of biodiesel, generating revenue of CNY3.3 billion (USD462 million), with exports accounting for nearly CNY3.2 billion of that total — roughly 93 percent of its annual earnings.
The company is also nearing completion of a separate 100,000-ton biodiesel plant in Singapore, which is set to begin operations later this year. The Singapore facility will primarily serve the city-state’s bunkering market, the largest in the world, with a focus on low-carbon marine fuels.
However, Zhuoyue faces challenges in international markets. In February, the European Union imposed anti-dumping tariffs ranging from 10 to 35.6 percent on Chinese biodiesel imports. Zhuoyue was hit with a 23.4 percent tariff, which will remain in place for five years. Sustainable aviation fuel (SAF) was excluded from the duties.
Zhuoyue’s stock [SHA: 688196] dipped slightly in trading today, down 0.6 percent to CNY47.48 (USD6.61) by the mid-day break on the Shanghai Stock Exchange.
