Plastic-to-Jet-Fuel: A Billion-Yuan Industrial Transformation Behind China’s Technological Breakthrough

Another opportunity in this segment lies in pretreatment technologies. Traditional manual sorting is inefficient and costly, whereas demand for automated sorting, cleaning, and pelletizing equipment is growing rapidly. Zhejiang Guosu’s equipment achieves a profit of RMB 4,000 per ton largely because it eliminates 80% of manual sorting costs. Midstream: Technology Reigns Supreme — Diverging Technical Pathways The conversion stage—the midstream—is the most technologically intensive and fiercely competitive segment. Two distinct technical pathways have already emerged domestically. The first is the pyrolysis-hydrogenation route—the very approach pursued by Fudan University and its academician-led team. This method first pyrolyzes plastic into small-molecule hydrocarbons, then adjusts molecular structures via catalytic hydrogenation to ultimately produce naphthenes and alkanes meeting aviation turbine fuel specifications. Products from this route boast high quality and can be directly used as jet fuel components; however, equipment investment and catalyst costs are relatively high. The second is the low-temperature pyrolysis route, championed by private enterprises such as Zhejiang Guosu. It conducts sealed, oxygen-free pyrolysis at lower temperatures and ambient pressure, yielding primarily fuel oil, which may undergo subsequent refining depending on requirements. Its advantages include lower capital investment, simpler processes, and faster project commissioning—but product quality is comparatively lower, potentially requiring further blending to meet jet fuel standards. Neither route is categorically superior; rather, each suits different application scenarios. The pyrolysis-hydrogenation route fits large-scale integrated refinery projects—e.g., Sinopec Zhenhai Refining & Chemical’s collaboration with Taihua New Materials on the ‘waste plastic → pyrolysis oil → jet fuel component’ project—which leverages existing refinery hydrogenation capacity to significantly reduce investment costs. In contrast, the low-temperature pyrolysis route suits smaller-scale, distributed facilities located near waste-plastic generation sites, minimizing raw-material transportation costs. Another often-overlooked midstream opportunity lies in catalysts. Whether cobalt-nickel or single-atom ruthenium catalysts, most remain in the transitional phase from lab-scale to industrial-scale deployment. Whoever pioneers scalable catalyst production, cost reduction, and extended service life will capture the largest share of value. Domestic catalyst industry leaders hold inherent advantages amid this round of technological iteration. Downstream: Airlines Pay, Policy Guarantees The downstream segment covers distribution and end-use of aviation fuel. Currently, SAF’s primary buyers are North American and European airlines facing the strongest carbon-reduction pressures. United Airlines and Delta Air Lines in the U.S., and Lufthansa and Air France-KLM in Europe, have all signed substantial long-term SAF procurement agreements. Domestic Chinese airlines show comparatively weaker motivation—but policy direction has clearly shifted. The Civil Aviation Administration of China’s 14th Five-Year Plan explicitly calls for promoting SAF application, targeting 50,000 tons of SAF consumption by 2025. Though this figure appears modest, considering China’s near-zero current SAF production capacity, scaling from zero to 50,000 tons will catalyze numerous projects. More importantly, SAF pricing is not fully market-driven. Under mandatory policy requirements and carbon-tax pressures, airlines must purchase SAF—even at premium prices. This ‘demand rigidity’ translates into ‘price rigidity’: as long as policies remain firm, prices won’t fall. For upstream producers, this represents the most favorable business model. Who Are the Real Winners? Viewing the entire value chain holistically, the most certain opportunities lie not in the flashiest technological segments—but in the ‘dirtiest’ and ‘most labor-intensive’ collection-and-transport segment, and in the most barrier-protected catalyst segment.

Honeywell Partners with United Airlines to Advance Aviation’s Largest-Ever Sustainable Aviation Fuel Procurement Agreement

(Beijing, September 15, 2021) Honeywell recently announced a joint multi-million-dollar investment with United Airlines (hereinafter referred to as 'United') in Alder Fuels, a clean-tech startup. Alder is pioneering a novel technology that converts abundant biomass feedstocks—including forest and agricultural residues—into sustainable, low-carbon crude-oil substitutes, enabling large-scale production of sustainable aviation fuel (SAF). Across the full fuel lifecycle, Alder’s technology—combined with Honeywell’s Ecofining™ process—produces negative-carbon fuel matching current aviation fuel performance standards, achieving full petroleum-jet-fuel replacement. Under the agreement, United has committed to purchasing approximately 5.7 billion liters (1.5 billion U.S. gallons) of SAF produced by Alder to United’s specifications. This procurement agreement represents 1.5 times the total volume of all previously announced SAF purchase commitments by airlines worldwide—and thus stands as the largest-known SAF procurement agreement in aviation history. “Since announcing our 100% green commitment in 2020, United has prioritized decarbonization approaches beyond conventional carbon offsetting,” said United CEO Scott Kirby. “This includes increasing both the use and supply of SAF—the fastest path to reducing fleet emissions. Yet scaling SAF production rapidly demands more than reliance on existing solutions alone. We must invest in next-generation innovations like those underway at Alder.” “United is already ahead of other carriers in powering flights with SAF—turning sustainable travel into reality. Our leadership sends a powerful message to customers about our mission to help combat climate change.” “Honeywell pioneered the SAF market through development of the UOP Ecofining™ technology,” said Honeywell Chairman and CEO Darius Adamczyk. “Our collaboration with United and Alder will harness cutting-edge innovation to accelerate industry transformation and support zero-carbon economic growth. This solution not only advances United’s SAF commitment but also helps the aviation sector break free from rising carbon emissions tied to operational growth.” According to data from the U.S. Department of Energy, forestry and agricultural residues alone in the United States could supply sufficient biomass energy to produce over 64.3 billion liters (17 billion U.S. gallons) of aviation fuel—replacing 75% of current U.S. jet fuel consumption. If regenerative agriculture practices were widely adopted across the U.S., healthier soils would sequester additional carbon, enabling production of roughly another 26.5 billion liters (7 billion U.S. gallons) of SAF—enough to fully replace all fossil-based jet fuel currently consumed in the country.

Neste, United Airlines Renew SAF Supply Agreement

11 hours ago

Neste and United Airlines renewed their SAF supply agreement for Chicago and Amsterdam flights. The biofuel, made from waste oils, supports capacity expansion to 2.2 million tons annually by 2027.

ccin

2026-09-22

Neste, United Airlines Renew SAF Supply Agreement

Neste, United Airlines Renew SAF Supply Agreement

FAQ