Many countries have snapped up cheap waste oil in China, which is out of stock all over the world. Should it be included in strategic materials？
The demand for China’s "gutter oil" is increasing in the United States, Europe and Singapore, mainly for the development of biofuels. However, the global demand for biofuels is huge, and even if all the waste edible oil in China is utilized, it cannot be fully met.
According to the customs data of China, in 2023, China exported more than 2 million tons of waste edible oil, accounting for more than half of the total domestic production, a record high. Since last year, China has become the world’s largest exporter of waste edible oil. From January to July this year, China has exported 1.58 million tons of waste edible oil, an increase from 1.02 million tons in the same period last year. According to a report released by the General Administration of Customs of China, in July, China exported 176,800 tons of waste edible oil, and the main importing countries included the United States, Singapore and Indonesia.
Waste edible oil imported from these countries is mainly used to produce biofuels. Whether it is ester-based biodiesel, hydrocarbon-based biodiesel or sustainable aviation fuel, waste edible oil is a key raw material. Biofuels are favored by countries because of their renewability and environmental friendliness. Waste oils and fats will produce greenhouse gases in the process of natural consumption, but if recycled, it will not only produce economic value but also reduce carbon emissions. For example, the carbon emission reduction effect of ester-based biodiesel is about 60% to 70%, while that of hydrocarbon-based biodiesel can reach about 80%.
The International Air Transport Association requires the aviation industry to achieve zero net carbon emissions by 2050, and stipulates that aircraft should be powered by 100% sustainable aviation fuel, hydrogen or batteries. China’s waste edible oil is exported not only directly, but also in the form of refined biodiesel. In 2023, China’s biodiesel exports to the EU reached an all-time high of 1.8 million tons, of which the Netherlands was the largest importer, followed by Belgium and Spain.