China biodiesel market set for takeoff with 3.65 mln t/y of new capacity in 2026, driven by SAF demand

Propelled by the EU's binding blending mandate and domestic pilot policies, China's biodiesel and SAF market is poised for a surge in both supply and demand in 2026. A wave of new projects, totaling 3.65 million t/y in annual capacity, is set to come online, marking a pivotal shift toward higher-value aviation fuel production.

The year 2026 is shaping up to be a pivotal breakout year for China's biodiesel industry, characterized by a dual-engine growth in supply and demand centered on sustainable aviation fuel. On the supply side, a significant capacity expansion is underway. Eleven new production units are planned for startup across the