[SMM Hydrogen Energy Policy Update] Comprehensive Department of the National Energy Administration: Notice on Launching the First Batch of Pilot Work for Technological Breakthroughs and Industrialisation of Green Liquid Fuels

Recently, the General Department of the National Energy Administration issued a notice on carrying out the pilot work of technological breakthroughs and industrialisation of green liquid fuels (the first batch).

The document pointed out that green liquid fuels refer to low-carbon fuels represented by sustainable aviation fuel (SAF), sustainable diesel, biofuel ethanol, green methanol, and green ammonia. To implement the decisions and arrangements of the CPC Central Committee and the State Council, ensure energy security, promote green transformation, drive the development of new technologies, models, and business forms in the green liquid fuel sector, cultivate new quality productive forces in the energy field, and enhance new momentum for development, after organising expert reviews, verifications, and public announcements, the administration has in principle approved nine projects, including SDIC Bioenergy's 30,000 mt/year cellulosic fuel ethanol project, to carry out the pilot work of technological breakthroughs and industrialisation of green liquid fuels. The relevant matters are hereby notified as follows.

 I. Solidly Organise and Carry Out the Pilot Work

  The energy authorities of relevant provinces (autonomous regions) and central state-owned enterprises in the energy sector should attach great importance to this initiative, strengthen the organisation, guidance, and support for the pilot work, and promptly coordinate to resolve issues encountered during project construction and operation. For projects with slow progress, intensified supervision and guidance should be provided. Pilot project enterprises should play a leading role, accelerate project construction, ensure completion and operation by December 2026, and achieve stable high-load production by June 2027. Innovation should be the primary driving force, striving to overcome relevant technological bottlenecks, improve equipment standards, reduce production costs, and ensure the pilot work achieves tangible results.

  II. Ensure Standardised Operation of Pilot Projects

  The energy authorities of relevant provinces (autonomous regions) and central state-owned enterprises in the energy sector should strengthen supervision and management of pilot projects to ensure the green credentials of raw material collection, production processing, and end-use products. Strict measures must be taken to prevent fossil-based products from being passed off as green liquid fuels and to stop substandard products from entering the market. In accordance with the relevant document, no activities such as awarding plaques or naming are permitted under this pilot program.

  III. Strengthen Policy Support for the Pilot Work

  Green liquid fuels such as green methanol, green ammonia, and cellulosic fuel ethanol are emerging fields with incomplete supporting policies. The pilot should identify policy bottlenecks and gaps to foster a favorable policy environment. The administration will prioritize recommending eligible pilot projects for medium and long-term manufacturing industry loan support and include qualified technical equipment in the energy sector's first (set) major technical equipment list, granting access to relevant support policies. Support will also be provided for pilot projects to undertake scientific research tasks and establish standards for green liquid fuels.

  IV. Conduct Summary and Evaluation of the Pilot Work

  During the pilot period, the energy authorities of relevant provinces (autonomous regions) and central state-owned enterprises in the energy sector should conduct annual evaluations of the pilot work, compile annual reports on the pilot progress, and submit them to the administration (Department of Energy Conservation, Science and Technology Equipment) by the end of February of the following year. Our bureau will organize experts to evaluate the pilot work, and projects with poor implementation and unsatisfactory results will be removed from the pilot project list.

   The first batch of green liquid fuel technology research and industrialisation pilot work should be completed by the month-end of December 2027. Your unit is requested to promptly organize acceptance and summary evaluations, and submit a summary report to our bureau (Department of Energy Conservation and Science & Technology Equipment). Our bureau will promote and publicize the projects based on their effectiveness and application prospects.