Jiaze New Energy Signs Agreements for 300,000-Tonne Green Methanol and SAF Co-Production Project in Jixi

JIXI, Heilongjiang — Jiaze New Energy has signed a series of agreements related to its 300,000-tonne green methanol and sustainable aviation fuel (SAF) co-production project in Jixi, Heilongjiang Province.

The signing ceremony was held in Jixi, covering agreements on policy-based financial instruments, syndicated fixed-asset loans and the establishment of a joint laboratory with the Qingdao Institute of Bioenergy and Bioprocess Technology, Chinese Academy of Sciences (CAS). The agreements bring together local government, financial institutions, research teams and industry stakeholders to support the project.

With a total investment of approximately RMB 3.557 billion, the project is located in the Jidong County Economic Development Zone. It will use non-food agricultural and forestry biomass, including corn straw and corn cobs, as feedstock.

The project will employ processes including pressurised biomass gasification and cellulosic fermentation-based alcohol production to produce green methanol and cellulosic ethanol. The ethanol can then be further converted into sustainable aviation fuel (SAF).

Construction officially began in April this year, with the project scheduled to enter operation by the end of 2027. Once fully operational, the facility is expected to consume more than 1.5 million tonnes of agricultural and forestry waste annually.

Under the agreements, the Heilongjiang Branch of China Development Bank signed a policy-based financial shareholder loan agreement. Bank of Communications, Shanghai Pudong Development Bank (SPD Bank), China Construction Bank and other financial institutions jointly signed a syndicated loan agreement to provide financial support for the project’s construction.

Jiaze New Energy will also establish a joint laboratory with the CAS Qingdao Institute of Bioenergy and Bioprocess Technology. The laboratory will focus on R&D across the biomass conversion value chain, addressing key industry challenges including straw pre-treatment, enzyme production and long-term stable operation.

The project will be supported by a biomass cogeneration system and will rely primarily on green energy during production. Its products are expected to deliver significant lifecycle carbon emissions reductions and can be used across the aviation, shipping and chemical industries.

In recent years, Jiaze New Energy has pursued a dual-core strategy focused on “green energy plus green chemical fuels”, leveraging abundant agricultural and forestry resources in Northeast China to develop biomass-derived green fuels.

Once completed, the Jixi project is expected to serve as a domestic benchmark for biomass-based green alcohol and SAF co-production, while diversifying China’s non-food feedstock sources for sustainable aviation fuel and promoting the high-value utilisation of agricultural and forestry residues in Northeast China.