Pilot business of blending and blending biofuel oil has been implemented in Zhejiang Pilot Free Trade Zone (see picture)

The picture shows customs officers understanding the blending situation of the first batch of biofuel oil. Photo by Qi Yuye

On the morning of March 13th, 2000 tons of biodiesel and 6300 tons of high sulfur fuel oil were mixed in the F-02 storage tank of Sinochem Xingzhong Petroleum Transportation (Zhoushan) Co., Ltd. The mixed biofuel oil will be supplied to international navigation ships. This marks the successful implementation of the pilot business of blending and blending biofuel oil under the first domestic processing trade item in Zhejiang Pilot Free Trade Zone.

Biofuel oil blending refers to the physical blending of biodiesel and fuel oil in a certain ratio according to market demand and product standards by enterprises to generate renewable, clean, and safe biofuel oil, thereby further reducing environmental pollution and promoting the green development of the shipping industry.

In recent years, Zhejiang Pilot Free Trade Zone has relied on the policy dividends related to bonded fuel oil blending, continuously innovated regulatory models, optimized operational processes, effectively reduced fuel supply costs, and enhanced the international competitiveness of bonded fuel oil refueling. By 2025, the supply of bonded ship fuel in Zhoushan will reach 8.02 million tons. Exploring the pilot business of blending and blending biofuel oil is one of the tasks for the construction of the bulk commodity resource allocation hub in Zhejiang Pilot Free Trade Zone. In order to seize the opportunity of green and low-carbon transformation in the global shipping industry and further open up the green energy market, Zhoushan is based on the existing oil industry foundation, actively exploring and promoting the pilot business of biofuel oil blending and blending, targeting the emerging market of global green ship fuel refueling centers, and continuously consolidating and upgrading its position in the global ship fuel refueling field.

The implementation of biofuel oil blending and blending business will directly reduce the operating costs of biofuel oil, help Zhoushan accelerate the construction of a global bonded ship refueling center, and enhance the ability to allocate bulk commodity resources, "said Qiu Yuqiao, Deputy Manager of the Business Department of Sinochem Xingzhong Petroleum Transportation (Zhoushan) Co., Ltd.

The high sulfur fuel oil involved in this blending comes from abroad, while biodiesel comes from domestic refineries, achieving direct supply from production to consumption and reducing trade links.