BP Plc has acquired a stake in a Chinese sustainable jet fuel company for 350 million yuan ($49 million), giving the oil major a foothold in one of the world’s biggest aviation markets.
The company purchased a 15% stake in a subsidiary of Zhejiang Jiaao Enprotech Stock Co., according to a statement late Thursday from BP’s China unit. The acquisition is subject to government approvals, it added.
The Chinese company is scheduled to complete construction of a sustainable jet fuel plant in the first quarter of 2025, which will have capacity to produce 500,000 tons a year. Biofuel will be made from used cooking oil and animal waste fat, Zhejiang Jiaao said in a separate statement.
Earlier this year, Boeing Co. accused the world’s biggest oil companies of doing too little to produce sustainable aviation fuel as industry signaled frustration about the lack of supply. Zhejiang Jiaao said biofuels could help the aviation sector reduce emissions by 65% by 2050.
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