【2026 Industry Updates】Overview of the latest progress in China’s SAF projects in 2026 — Qingdao Shangyu Environmental Protection
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According to news from January 23, 2026, the 300,000 tons per year sustainable aviation fuel project in Dongjiakou is set to be implemented. The project will be built by Qingdao Shangyu Environmental Protection Co., Ltd., with a total investment of 2,646.3 million yuan. It is located within the Dongjiakou Chemical Industry Park, to the south of Jicheng Road, to the west of Shugang First Road, and to the east of Henghe Road.
The project covers an area of 142.5 mu, and includes the construction of 1 set of waste oil pretreatment equipment with a capacity of 400,000 tons per year, 1 set of bio-jet fuel hydrogenation equipment with a capacity of 300,000 tons per year (including hydrogenation deoxygenation, isomerization, and distillation), and 1 set of light hydrocarbon conversion hydrogen production equipment with a capacity of 25,000 Nm3/h (including hydrogenation, refining and desulfurization, and PSA purification). Additionally, there are tank areas, loading/unloading stations, sewage treatment plants, as well as various auxiliary facilities. The project utilizes 400,000 tons per year of waste oils such as waste cooking oil and acidified oil. Through processes like pretreatment, hydrogenation, and isomerization, it produces renewable jet fuel/biodiesel and naphtha products ； The hydrogen required for hydrogenation is produced internally using a light hydrocarbon steam reforming + pressure swing adsorption process.
Depending on the market demand for products, the project can operate in either SAF or HVO mode; in the SAF mode, 322,400 tons of bio-jet fuel and 17,500 tons of naphtha are produced per year, while in the HVO mode, 344,000 tons of bio-diesel and 5,500 tons of naphtha are produced per year.
Construction on the project is scheduled to begin in April 2026, with completion expected in October 2027. The total construction period will be 18 months. The project requires 250 employees; the production workers work in four shifts with three shifts per day, resulting in 8,000 hours of operation per year and 333 working days per year.
The project provides the market with clean, low-carbon, renewable biomass liquid fuels； This project will enable an annual processing capacity of 400,000 tons of waste oils and fats. Its implementation will help Qingdao City and the Shandong Peninsula improve the management of the resource utilization of kitchen waste, further enhancing their capabilities in reducing, rendering harmless, and recycling such waste.
On April 10, 2026, the 300,000 tons per year sustainable aviation fuel project in Dongjiakou, Qingdao, officially received its construction project planning permit, marking the entry of this key green and low-carbon energy project into the actual construction phase.