Texas Pioneers the Full Industrial Chain for Biodiesel – Turning Used Cooking Oil into a New Source of Green Energy

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Dezhou was the first to establish a complete industrial chain for biodiesel – turning used cooking oil into a new source of green energy. In mid-March, Dezhou Rongyuan Investment and Development Co., Ltd. (hereinafter referred to as “Rongyuan Investment”), a wholly-owned subsidiary of Dezhou Guorong Asset Operation Co., Ltd. (hereinafter referred to as “Guorong Asset”), along with its Xiajin No.1 gas station, issued the first B5 biodiesel wholesale and retail invoices in Shandong Province and the first such invoices in any city or county administrative region across the country. This marked the establishment of a complete industrial chain for biodiesel, covering everything from raw material collection to production, processing, intelligent blending, and widespread application. 　　This move not only makes Texas the first city among the nation’s initial 22 biodiesel promotion pilot areas to implement market-based use of biodiesel, but it also marks a significant step forward in the use of green energy as a substitute in key application areas in China. 　　Eaten up to the last drop – gutter oil turned into green energy. B5 biodiesel is composed of 95% petrochemical diesel components and 5% BD100 biodiesel components. In this project in Texas, the BD100 biodiesel was produced by Dezhou Rongguang Bio-Technology Co., Ltd., a company under Guorong Asset Holdings (hereinafter referred to as “Rongguang Bio”). 　　“We use waste oils from restaurants, food factories, and kitchen waste disposal sites, as well as industrial oil residues from the oil industry (commonly known as gutter oil) as raw materials, and have currently established a stable system for their collection, storage, and transportation. ”Li Rongguang, chairman of Rongguang Biology, explained. 　　Companies classify waste oils based on their quality: those with few impurities and a low acid value are sent directly to the production workshop ； Those with high moisture content and high acid value undergo pretreatment such as dehydration, impurity removal, and degumming first, before being fed into the reaction vessel through sealed pipelines. Through processes such as esterification, transesterification, and distillation, oils are efficiently converted into BD100 biodiesel, with a conversion rate of over 90%. 　　In the biodiesel production process, used cooking oil is utilized to the fullest extent, with almost no waste generated throughout the entire process from raw materials to the final product. Li Rongguang explained that during the production of biodiesel from used oils, substances such as water, forefractions, vegetable pitch, and trace amounts of glycerin are also generated. Among them, water goes into wastewater treatment plants; the initial fractions are sold as green fuel, plant pitch is used for road construction or as a modifier, trace amounts of glycerin can be purified for use, and even the remaining food waste is turned into organic fertilizer. Furthermore, the company uses a protease method instead of the traditional acid-base method, which significantly reduces odors and pollution during the production process, enabling a green circular process throughout the entire workflow. 　　Breaking through the patterns to create a complete business ecosystem across the entire industry chain. In the eyes of industry experts, Texas’ breakthrough is expected to resolve the long-standing dilemma faced by China’s biodiesel industry – namely the difficulty in achieving commercial success despite positive feedback. 　　Ji Xing, deputy director of the National Key Laboratory of Non-grain Biomass Energy Technologies and a visiting researcher at the Qingdao Institute of Bioenergy and Bioprocess Technology, Chinese Academy of Sciences, said in an interview with reporters that in the past, due to the lack of systematic coordination among various supporting policies, China’s biodiesel industry has long faced the dilemma of having good potential but difficulty in achieving commercial success. Furthermore, driven by demand from the EU and price differences between domestic and international markets, domestic biodiesel manufacturers have for a long time seen their products remain in high demand abroad – with a large amount of it being exported. As international trade barriers increase, tapping into the domestic biodiesel market has shifted from an “optional option” to a “must-do task”. This initiative in Texas provides a replicable local model for the biodiesel industry. 　　“The experience in Texas shows that it is feasible to promote biodiesel in prefecture-level cities and county-level administrative areas, provided the necessary efforts are made; the key lies in establishing, at both technical and policy levels, all the mechanisms needed for biodiesel to be blended with petrochemical diesel and brought to market. ”Ji Xing said. 　　According to the reporter’s findings, the BD100 biodiesel produced by Rongguang Biology is transported to the biodiesel intelligent blending center operated by Rongyuan Investment, where it is scientifically blended to produce B5 biodiesel that meets **the relevant standards. The 4 retail gas stations operated by Guorong Assets in Wucheng, Pingyuan, and Xiajin are responsible for supplying B5 biodiesel in bulk to key industries such as logistics, municipal services, and construction. 　　On the day the first B5 biodiesel invoice was issued in Texas, Guorong Assets received an order for 200 tons, and several downstream companies expressed their interest in cooperating. 　　Elevating value to drive the low-carbon transformation of local refineries 　　Dezhou’s efforts in this regard are also expected to help local refineries transition toward a green and low-carbon model. 　　Ji Xing believes that the establishment of a complete bio-diesel production chain in Dezhou will encourage local refining companies in Shandong to shift from producing traditional petroleum products to manufacturing green and low-carbon products such as B5 bio-diesel, bio-marine fuel, and bio-aircraft kerosene, thereby accelerating their transformation into high-quality bio-refining enterprises that operate in an environmentally friendly manner. 　　“Biodiesel can reduce carbon emissions by over 80% compared to petrochemical diesel. Over the entire life cycle, compared to National VI diesel, each ton of B5 biodiesel used can result in a reduction of 150 kilograms of carbon dioxide emissions. ”Ji Xing said that not only that, but B5 biodiesel also has better lubricity, which can significantly extend the lifespan of engine injectors and high-pressure common rail systems ； It has a high cetane number, providing better power and smoother operation when heavy equipment or trucks with high loads start moving on a slope ； It has excellent emission performance, with lower levels of emissions such as particulates, carbon monoxide, hydrocarbons, and sulfides. 　　“The promotion of biodiesel in Texas this time has been successful at the local and municipal levels from the bottom up, making it more valuable for further dissemination and replication. ”Ji Xing concluded by saying, “The key to success lies in fully leveraging the enthusiasm and creativity of local governments, ensuring organic coordination among various departments to create a cohesive policy framework, and establishing a complete industrial ecosystem that spans from technology to the market, so that green energy can be effectively put into practice.” This also proves that the bioenergy industry can not only address environmental issues, but also foster new drivers of economic growth. ”