Sinopec Seeks Approval for Aviation Biofuel from Next Year

Sinopec, one of China's largest state-run petroleum & chemical corporations, said the company will complete all preparations for government approval of its aviation biofuel, extracted and refined from waste cooking oil, next January.

The Civil Aviation Administration of China in February accepted the application for Sinopec's aviation biofuel, which is expected to be used in the aviation industry in the future.

Biofuel is organic fuel refined from animal, plant or microorganism matter. The material must pass through the administration's examinations before use.

Since 2009, the company claims to have found sustainable sources of waste oil for processing from restaurants like McDonald's and KFC. The company is also seeking other major restaurant chains to enhance its supply.

Some successful cases of biofuel integration can already be found in the global aviation industry, such as UK Thomson Airways, who launched a successful debut flight in October 2011, and KLM Royal Dutch Airlines, which already powers some flights with biofuel.

The aviation carbon tax proposed by the European Union can be regarded as the main reason for stepping up the development of aviation biofuel, which is not taxable, said sources from Sinopec.

As of January 2013, airlines will be required to pay the carbon tax for any flights traveling through European airspace. The tax amount is based on the volume of carbon dioxide emissions for the flight, according to the UN's Emission Trading Scheme.

Wang Changshun, chairman of Air China, said China is one of the few countries which has not agreed to pay the carbon tax, but will soon have to comply with regulations. The tax system would burden the country's aviation industry with additional costs of 17.9 billion yuan (US$2.8 billion) over the next eight years, said Wang.

Jian Kejun, the director of the resource and marketing research department at China's Development & Reform Commission, expected that 80% of global flights will use biofuel in 2040.

The cost of aviation biofuel, which is 1.5 to 2 times that of traditional petroleum fuel, is still a hard fact for Sinopec to face.