Core Viewpoint - The A-share biodiesel sector experienced a significant surge, driven by the strong debut of Fengbei Bio on the Shanghai Stock Exchange and increasing global support for sustainable aviation fuel (SAF) procurement and application, indicating a positive outlook for the biodiesel industry chain [1] Industry and Company Summary - Fengbei Bio, a high-tech enterprise in the field of waste resource utilization, focuses on producing resource-based products from waste oils. The company has established a stable partnership with HXN Energy, which is expected to be its second-largest customer by mid-2025, benefiting from the rising demand for industrial-grade blended oils due to the SAF and biodiesel industry [2] - HXN Energy has been deeply involved in the biodiesel industry for years, aiming to become a global leader in green energy and chemical products. The company is enhancing its raw material supply system and plans to expand its biodiesel raw material sources while improving procurement transparency and controlling costs [4] - According to the International Energy Agency (IEA), global biodiesel consumption is projected to grow from approximately 42.42 million tons in 2023 to 59.93 million tons by 2028, reflecting a compound annual growth rate of about 7.16%. Both Fengbei Bio and HXN Energy are positioned to benefit from this growth in global biodiesel demand [7] - Policy initiatives are creating new opportunities in the bioenergy sector, with countries expanding the application of biofuels in various transportation modes. For instance, Singapore's new legislation mandates that departing flights must use at least 1% SAF starting in 2026, increasing to 3-5% by 2030, marking a significant step in decarbonizing transportation [8] - The European market is expected to be a core area for biodiesel demand, with the EU set to implement large-scale SAF blending mandates starting in 2025. The International Maritime Organization's strategy aims for net-zero greenhouse gas emissions from ships by 2050, further driving the demand for biodiesel as a shipping fuel [9]

Core Viewpoint - The Chinese biodiesel industry is facing significant challenges due to EU policies, but the emerging market for bio marine fuel presents a viable opportunity for growth and diversification [2][3][5]. Industry Overview - China is a major biodiesel producer with an annual output exceeding 2 million tons, of which 90% is exported [3]. - The EU is the largest market for Chinese biodiesel, with approximately 180,000 tons exported in 2023, accounting for 90% of total exports [3]. Challenges Faced - The biodiesel export volume dropped by 42.55% in the first half of 2025, indicating a significant contraction in market share [4]. - The EU has implemented multiple measures against Chinese biodiesel, including the revocation of ISCC certifications and anti-dumping investigations, leading to tariffs ranging from 10% to 35.6% [3][5]. Opportunities in Bio Marine Fuel - The bio marine fuel market is seen as a potential solution for the biodiesel industry, with the possibility of increasing annual usage to over 3.6 million tons [5][7]. - The demand for bio marine fuel is rising due to the shipping industry's decarbonization pressures, with significant sales growth in major ports like Singapore and Rotterdam [5][6]. Strategic Recommendations - Promoting bio marine fuel aligns with low-carbon development trends and can help circumvent EU tariffs by shifting the supply chain to domestic blending and refueling [6][8]. - Establishing a local blending and refueling system is crucial for reducing costs and improving efficiency in the bio marine fuel market [8]. - The industry should focus on innovation and high-quality development to transition from an export-dependent model to a dual circulation strategy [8].

Core Insights - The Chinese biodiesel industry is facing significant challenges due to EU policies, but the development of bio marine fuel bunkering presents a viable opportunity for growth [1][2][4]. Industry Overview - China is a major biodiesel producer with an annual output exceeding 2 million tons, of which 90% is exported [2]. - The EU is the largest market for Chinese biodiesel, with approximately 180,000 tons exported in 2023, accounting for 90% of total exports [2]. Challenges Faced - The EU has implemented multiple measures against Chinese biodiesel, including the revocation of ISCC certifications and anti-dumping investigations, leading to a significant drop in exports [2][3]. - In the first half of 2025, China's ester-based biodiesel exports fell by 42.55% year-on-year, indicating a shrinking market share [3]. Opportunities in Bio Marine Fuel - Expanding bio marine fuel bunkering is seen as a critical strategy for the biodiesel industry to overcome export challenges [4][5]. - The demand for bio marine fuel is increasing, with significant sales growth in major ports like Singapore and Rotterdam, despite a price premium of 30% to 60% over low-sulfur fuel oil [4]. Strategic Advantages - Promoting bio marine fuel aligns with low-carbon development trends and can help avoid EU tariffs by shifting the supply chain to domestic blending and bunkering [5][6]. - The establishment of a domestic carbon accounting and certification system is crucial for enhancing China's international competitiveness in biofuels [6]. Future Projections - By the end of the 14th Five-Year Plan, the annual consumption of B24 bio marine fuel in China is expected to reach 15 to 20 million tons, potentially driving biodiesel usage by 3.6 to 4.8 million tons [6]. - The industry must transition from an export-dependent model to a dual circulation strategy, focusing on innovation and high-quality development [7].

Core Viewpoint - The Chinese biodiesel industry is facing significant challenges due to EU policies, but the development of bio marine fuel bunkering presents a viable opportunity for growth and market expansion [1][2][4]. Industry Overview - China is a major biodiesel producer with an annual output exceeding 2 million tons, of which 90% is exported [2]. - The EU is the largest market for Chinese biodiesel, with approximately 180,000 tons exported to the EU in 2023, accounting for 90% of China's total biodiesel exports [2]. Challenges Faced - The biodiesel industry is experiencing a 40% drop in export volume in the first half of 2025, with total exports at 380,100 tons [3]. - The EU has implemented multiple measures against Chinese biodiesel, including the revocation of ISCC certifications and anti-dumping duties ranging from 10% to 35.6%, severely impacting export opportunities [2]. Opportunities in Bio Marine Fuel - The bio marine fuel bunkering market is emerging as a critical strategy for the biodiesel industry to overcome export challenges, with potential annual usage exceeding 3.6 million tons [4][6]. - The demand for bio marine fuel is increasing due to the shipping industry's decarbonization pressures, with significant growth in sales at major ports like Singapore and Rotterdam [4]. Strategic Recommendations - Promoting bio marine fuel bunkering aligns with low-carbon development trends and can help circumvent EU tariffs [5]. - Establishing a domestic carbon accounting and certification system for bio marine fuel can enhance China's position in international trade [6]. - The industry should transition from an export-dependent model to a dual circulation strategy, focusing on innovation and high-quality development [7].