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Jiaze New Energy's subsidiary will invest approximately RMB 3.56 billion ($490 million) in a green hydrogen alcohol aviation fuel project in Jidong County, Jixi City, Heilongjiang province, China, aiming to produce 300,000 metric tons per year. The project, developed by Heilongjiang Jiayi Rongyuan Green Chemical, is set to receive funding through internal capital and external financing, with the board approving the proposal on Dec. 12, pending shareholder approval.

This initiative aims to enhance China's sustainable aviation fuel supply chain through green hydrogen-based alcohol fuels. The investment faces risks related to technology integration, operational challenges, and market conditions, as green alcohol fuels have higher production costs compared to conventional fuels. The announcement coincides with China's push for domestic SAF development and tightening feedstock availability across Asia.