China has approved another three biofuel refiners to export sustainable aviation fuel by issuing them quotas, according to trade sources and a Chinese consultancy, a move that could see exports to Europe increase.

While Europe, the world's second-largest aviation fuel market, has yet to set a mandate for the usage of greener fuel, Chinese biofuel firms are building more SAF plants and targeting the continent as a top export destination.

China's Ministry of Commerce, which is responsible for quota issues, did not immediately respond to a Reuters request for comment.

Shandong Haike Chemical, Shandong Sanju Bioenergy and Bain Capital-backed EcoCeres were awarded export quotas for a total of 788,000-828,000 metric tons a year, according to three industry and trade sources, and Chinese commodities consultancy JLC in a report.

Shandong Sanju Bioenergy was allotted around 158,000 tons and Shandong Haike Chemical 370,000 tons, while EcoCeres received 260,000-300,000 tons of export permits, the sources and JLC said.

This brings the total amount of SAF quotas issued so far in 2025 to around 1.2 million tons, including the first such permits alloted to Zhejiang Jiaao Enprotech.

It is not compulsory for the new recipients to fully utilise the allotted permits by the end of 2025, according to the JLC report, but it is also unclear if the companies need to re-apply for quotas next year.

Zhejiang Jiaao exported its first cargo in early May.

REUTERS

China allows more biofuel firms to export green aviation fuel, sources say