EcoCeres to build $10b SAF ecosystem in GBA as part of regional green initiative
A Hong Kong-incubated sustainable fuel producer, EcoCeres, will build the first sustainable aviation fuel (SAF) value chain across the Greater Bay Area, backed by the Hong Kong and Dongguan governments, as it will establish a SAF base in Dongguan.
Incubated by Towngas in 2008, EcoCeres enables the transformation of wasted cooking oil into internationally certified SAF, which can reduce lifecycle carbon emissions by more than 80 percent compared with traditional aviation fuel.
Speaking at the memorandum of understanding signing ceremony by Hong Kong and Dongguan on Tuesday, Chief Executive John Lee Ka-chiu said the collaboration demonstrated an excellent example of executive-led governance and the synergy between the market and the government.
“We are linking the entire supply chain, from raw materials to production. That will drive investment and support our country's carbon reduction goals,” Lee said.
He added that Hong Kong will contribute global finance, professional services and research capabilities, while Dongguan provides chemical industry parks, logistics, and a steady supply of used cooking oil, the essential raw material for SAF.
The Secretary of the CPC Dongguan Municipal Committee Wei Hao noted that the Greater Bay Area’s population of more than 80 million generates a large and stable supply of used cooking oil, which will provide a key feedstock for SAF production.
Wei also said that the SAF base will be located on Lisha Island, a specialized industrial island with complete facilities, which is located close to major ports, providing strong logistics connectivity and a solid foundation for large-scale SAF production and distribution.
Co-chairman of EcoCeres, Alan Chan Ying-lung, said the company selected Dongguan after a thorough evaluation of its production environment and policy support.
He added that Dongguan, with a population of over 10 million, will also provide a large and stable supply of used cooking oil.
Co-chairman James Tam Chor-kiu added that Dongguan offers a well-developed industrial base, port facilities and logistics network, while being close to major aviation hubs including Hong Kong International Airport, which helps reduce both production and transportation costs.
Chan said the new Dongguan plant is expected to produce around 450,000 tonnes of SAF and hydrotreated vegetable oil annually.
He said that the project plans to invest more than HK$10 billion over the next five to 10 years to build a full end-to-end SAF ecosystem covering feedstock collection, production, logistics and application.
He added that the company’s current customers are mainly airlines. It has expanded into partnerships with banks and data centers for Scope 3 emission reduction products.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
