PYHB(300664)2024-11-28 00:23Project Overview - The company signed a strategic cooperation agreement with Panjin Shuangtaizi District Government in March 2023, establishing a subsidiary, Panjin Pengyao Bioenergy Co., Ltd [3] - The project involves a 1.2 billion yuan investment to transform a 200,000 tons/year hydrogenation unit into a 100,000 tons/year biomass liquid fuel project [3] - The project uses advanced boiling bed hydrogenation technology to produce second-generation biodiesel and bio-jet fuel that meet EU standards [3] Production and Efficiency - The upgraded production facility was completed in early September 2024, with trial operations starting on August 21, 2024 [3] - The overall product yield is 82%, with SAF yield at 55%, HVO yield at 14%, and bio-light oil yield at 13% [3] - The production cost per ton of raw material (excluding raw material costs) ranges between 1,500 yuan to 3,000 yuan [3] Market and Sales - The primary sales channel is the EU market, with orders dependent on market prices and sales directed towards European traders [3] - The company is seeking to establish contact with China Aviation Oil for domestic bio-jet fuel sales [3] - The company has not yet started the airworthiness certification process but plans to initiate it soon [3] Cost Advantages - The company operates in a light-asset model, reducing capital investment and annual fixed asset depreciation costs [4] - The production process package is self-developed, eliminating the need for expensive external process packages [4] - The production base in Panjin, Liaoning, benefits from relatively lower labor costs [4] Raw Materials - The main raw material is UCO (Used Cooking Oil), primarily sourced from collection points in surrounding provinces [3] - The UCO procurement volume of 100,000 tons is fully met by suppliers in Northeast China, Inner Mongolia, Hebei, and Tianjin [4] - The cancellation of UCO export tax rebates has led to a price decrease from around 800 per ton, with further declines expected [4] Future Plans - The company's future development in the biodiesel sector will depend on market prices for second-generation biodiesel and SAF [3] - The company plans to make capacity planning decisions based on the stable growth of market prices and the carbon neutrality goals [3]