(Yicai) March 14 -- Jiaao Enprotech, which recently received investment from UK oil major BP, has been given the greenlight by Chinese regulators to take its sustainable aviation fuel to market in China, paving the way for the Chinese environmental tech company to become a major provider of green jet fuel in the country.

Jiaao Enprotech’s bio kerosene has received approval from the Civil Aviation Administration of China, confirming that the fuel meets airworthiness certification requirements, the Jiaxing-based company said yesterday. No details were given about a sales strategy or potential customers.

The jet fuel will be produced at Jiaao’s CNY7.1 billion (USD1 billion) factory in Lianyungang, eastern Jiangsu province, it said. The plant, which came online in November last year, is designed to produce 750,000 tons of sustainable aviation kerosene a year. This would make Jiaao the biggest producer in the country when the factory is fully up and running.

Convinced of its potential, BP Global Investments, part of London-based BP, bought a 15 percent stake in the Liangyungang factory in August last year.

The Lianyungang plant, which is run by subsidiary Lianyungang Jiaao New Energy, uses waste resources, including food scraps and cooking oil, to produce jet fuel. Biokerosene is a key solution for the global aviation industry to transition to greener energy. Compared to traditional fossil fuel-based jet fuel, green aviation fuel can significantly reduce carbon dioxide emissions, the company said.

Jiaao’s biodiesel products have already been certified by the EU and, in 2021, the company entered into a long-term supply deal with Shell Oil. In 2023, Jiaao’s biodiesel business generated revenue of CNY1.7 billion (USD234.8 million), which accounted for about 67 percent of its total earnings for the year, according to the firm's 2023 annual report.

Jiaao’s share price [SHA:603822] closed down 6.2 percent at CNY60 (USD8) today. However, the company’s stock has gained around 40 percent in value in the past month, hitting a new high since September 2022 just yesterday. Since BP bought in, Jiaao’s stock has surged 172 percent.

Editor: Kim Taylor