Hongkun Energy lets contract for proposed SAF-HVO project in China

Privately held Guangxi Hongkun Energy Group Co. Ltd. (Hongkun Energy) has let a contract to Topsoe AS to deliver process technology for Phase 1 of subsidiary Guangxi Free Trade Zone Hongkun Biomass Fuel Co. Ltd.’s (Guangxi Hongkun Biomass) proposed renewable fuels production complex to be built at the Qinzhou petrochemical industry park (QPIP) of Qinzhou Port Economic and Technological Development Zone in the Beibu Gulf Economic Zone (BGEZ) of Guangxi Province, China.

As part of the late-April 2024 contract, Topsoe will license its proprietary Hydroflex technology to enable processing of 300,000 tonnes/year (tpy) of waste oil, or used cooking oil, into sustainable aviation fuel (SAF) and hydrogenated vegetable oil (HVO; biodiesel), Topsoe and Hongkun Energy said in separate releases.

Alongside technology licensing, Topsoe’s scope of work under the contract also covers process package design, technical services, and catalysts for the project, Hongkun Energy said.

In addition to the main technology licensing contract, Topsoe and Hongkun Energy simultaneously signed a memorandum of strategic cooperation on future development of green methanol, green ammonia, and biomass solid-waste production of biofuels, Hongkun Energy said.

Proposed SAF-HVO project

Slated for start of construction by the end of May 2024 and targeted for startup in early 2026, Hongkun Energy separately confirmed Phase 1 of Guangxi Hongkun Biomass’ complex specifically will include the following major units and associated processing capacities:

• Renewable feedstock pretreatment unit; 300,000 tpy.
• SAF hydrogenation unit; 300,000 tpy.
• Natural gas-based hydrogen production unit; 20,000 cu m/hr.
• Sulfur recovery unit; 120 tpy.

The project’s future Phase 2 would include an additional set of the same proposed units to bring overall processing capacities of the site to:

• 600,000 tpy of feedstock pretreatment.
• 600,000 tpy of SAF hydrogenation.
• 40,000 cu m/hr of hydrogen production.
• 240 tpy of sulfur recovery.

Upon full commissioning of Phases 1 and 2, Hongkun Energy said in September 2023 Guangxi Hongkun Biomass’ renewables complex would be able to produce:

• 228,800 tpy of SAF.
• 1,300 tpy of HVO, or biodiesel.
• 26,000 tpy of naphtha.

A timeline for completion of Phase 2 of the project, however, has yet to be revealed.

Estimated at an overall investment of 3.5 billion yuan ($480 million), the proposed complex comes as part of Hongkun Energy’s broader plan to accelerate support for China’s national objective to achieve a lower-carbon, greener, and more sustainable economy in line with goals of the global energy transition, according to the operator.