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On the evening of October 28, Chongqing Construction Engineering issued a announcement stating that, as a result of an open tender process, the consortium formed by the company’s wholly-owned subsidiary Chongqing Construction Engineering Residential Construction Co., Ltd. (referred to as “Residential Construction Company”) and CNPC East China Design Institute Co., Ltd. (referred to as “CNPC East China Design”) won the bid for the EPC general contracting project of a new 400,000 tons per year sustainable aviation fuel hydrogenation facility built by ENNIDA (Hebei) New Energy Co., Ltd. In accordance with the Joint Venture Agreement and other relevant provisions, the Housing and Construction Company, as the lead party of the joint venture, is responsible for the coordination and management of the general contracting work. It will be in charge of purchasing the main materials for the project, as well as carrying out the construction and installation tasks. The estimated cost for the general contracting services related to this project is around 1.637 billion yuan. The construction project includes a 400,000 tons per year sustainable aviation fuel hydrogenation unit, a hydrogen production facility with a capacity of 30,000 cubic meters per hour, a sulfur recovery complex (including an acidic water stripping unit with a capacity of 12 tons per hour and a sulfur recovery unit with a capacity of 200 tons per year), as well as the necessary supporting utility systems. As a member of the consortium, CNPC East China Design is responsible for the basic design and detailed design, as well as the provision of relevant MR documents for equipment and catalysts, and is accountable for the engineering design of the plant. It is reported that recently, the housing and construction company received the General Contract signed jointly by the various members of the consortium and the employer, Zhongneng Yida (Hebei) New Energy Co., Ltd. The contract duration is 630 calendar days, with payment made via an advance payment plus progress payments calculated on a monthly basis. Compared to conventional aviation fuel, sustainable aviation fuel (SAF) can reduce carbon dioxide emissions by over 80%, and it is key to enabling the global aviation industry to achieve net-zero carbon emissions. In July 2024, the European Aviation Safety Agency (EASA) announced that it would provide standard assessment services for SAF producers through the EU SAF information exchange center. In April 2025, the International Air Transport Association’s Sustainable Aviation Fuel Registry (SAF Registry) was officially launched. Managed by CADO (Civil Aviation Decarbonization Organization), this platform aims to create a global market for SAF.
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I thought the design institute was the leading party.
Providing the initial funding, the housing construction company, as the lead member of the consortium, is responsible for the overall coordination and management of the project. It will be in charge of purchasing the main materials, carrying out the construction work, and handling the installation tasks
Projects of this type, where the construction contractor provides the upfront funding for the EPC contract, carry high risks; the design institute only receives its design fees, which can lead to disputes in the future.
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