【2026 Industry Updates】Overview of the latest progress in China’s SAF projects in 2026 — Pengyao Environmental Protection
Thread Content
Pengyao Environmental Protection Co., Ltd. is one of the leading enterprises in China’s environmental protection industry. Founded in 1984, it went public in 2018. The company specializes in environmental water treatment, solid waste management, and new energy businesses.
On March 10, 2026, Pengyao Environmental Protection Co., Ltd. issued a \"Record of Investor Relations Activities.\" The announcement stated that the 100,000 tons per year biomass liquid fuel upgrade project in Panjin Pengyao is the company’s first biodiesel project, with a designed production capacity of 100,000 tons per year. The company will continue to invest in R&D to optimize the SAF process and enhance its profitability. In the short term, project benefits will be maximized through flexible production scheduling of HVO/SAF and expanding UCO trade. In the medium to long term, capacity expansion will be considered in a timely manner based on industry development and market orders, in order to capture a share of the global sustainable fuel market.
The company produces HVO and SAF through site leasing and the refurbishment of existing equipment; the production process technologies are developed and modified by its own technical team, so no additional costs are required for these technology packages. Under the same scale conditions, capital investment and daily operating costs are relatively low.
The SAF production line at the Panjin project has just been completed after renovation, and trial production is currently in progress. The future development of this project will depend on the market price of SAF. Additionally, taking into account future global demand growth and the current capacity utilization rates worldwide, Pengyao Environmental Protection will adhere to a prudent business approach and a long-term development strategy in order to implement its corporate plans. At present, the only SAF plant built in the Northeast region is Panjin Pengyao; the raw materials available in the surrounding area are sufficient to meet production needs, and transportation costs remain under control.
On March 26, 2026, the commissioning ceremony for the HVO/SAF (hydroprocessed vegetable oil/sustainable aviation fuel) production facility of Panjin Pengyao Bioenergy Co., Ltd. was successfully held. Wang Pengyao, chairman of Pengyao Environmental Protection, was present at the scene to witness this important moment together with key team members. With the on-site instructions given, the device started up successfully, marking the official entry of the project into the trial production phase.