Key facts
- China announced 16 new sustainable aviation fuel projects in the first half of 2026.
- State-owned enterprises like Sinopec and CNPC are driving this expansion.
- The buildout could impact global feedstock supplies relied upon by European airlines.
Chinese state-owned energy companies are significantly expanding their sustainable aviation fuel (SAF) production capacity. In the first half of 2026 alone, China announced 16 new SAF projects, a substantial increase compared to the four announced globally during the same period, according to BloombergNEF. This rapid, state-backed development is being led by major enterprises such as China Petroleum and Chemical Corp. (Sinopec) and China National Petroleum Corp., which account for nearly half of these new projects. This shift marks a change in the sector, which was previously dominated by private refiners. The expansion raises concerns about potential pressure on global feedstock supplies, a critical component for SAF production that is heavily relied upon by European airlines.