山高环能携手中航油布局SAF 以京津冀华中等中心城市推广餐厨废油闭环Shanggao Huan Neng collaborates with China Aviation Oil to deploy SAF, promoting a closed loop for kitchen waste oil in central cities such as Beijing-Tianjin-Hebei and Central China.

On October 23, Sango Environmental Group Co., Ltd. and China Aviation Oil Group Petroleum Co., Ltd. signed a strategic cooperation agreement. According to the agreement, the two parties plan to cooperate around the upstream and downstream of the sustainable aviation fuel (SAF) industry chain, covering areas such as resource organization, trade circulation, capital linkage, and technology exchange. The cooperation involves multiple links, including the organization of restaurant waste oil resources, SAF processing, and market sales.

From a business layout perspective, the parties' resources in the industry chain are complementary. China Aviation Oil has channels and customer resources within the biofuel industry chain, while Sango Environmental is primarily focused on the kitchen waste treatment sector, having established relevant projects in nearly 20 cities in China, with an operating scale ranking among the top domestically. The two parties intend to leverage their respective advantages to promote coordination in raw material supply, fuel processing, and market sales.

According to the cooperation agreement, both parties intend to focus on major central cities in regions such as Beijing-Tianjin-Hebei and Central China as key markets to promote a closed-loop management model for converting restaurant waste oil into SAF, and collaborate with local governments to standardize the collection and transportation system for restaurant waste oil, exploring the construction of a closed-loop management system of 'collection—SAF processing—airport refueling.'

In terms of trade cooperation, both parties plan to cooperate in the purchase and sale of restaurant waste oil and other liquid biomass materials, and intend to sign a long-term cooperation agreement. Under equal conditions, CNOOC Aviation Oil will give priority to sourcing from Shangaohuan Energy, while Shangaohuan Energy will prioritize supply to CNOOC Aviation Oil.

The parties also plan to explore equity cooperation and project joint ventures, jointly promoting the investment, construction, and operation of waste cooking oil (UCO) production facilities, upstream restaurant waste markets, and related industrial chain projects, and to explore cooperation opportunities in terms of resource system integration, capacity and project collaboration, market and channel complementarity, as well as technology and talent exchange.

While promoting cooperation in the industrial chain, Shangaohuan Energy is also planning the further development of its kitchen waste treatment business. According to the company's plan, over the next three years, it will increase its daily kitchen waste treatment capacity to 8,000 to 10,000 tons through mergers and acquisitions and other methods. In recent years, Shangaohuan Energy has continuously improved its kitchen waste collection and transportation network, optimized production processes, and promoted digital management across the entire collection and transportation chain to enhance the comprehensive oil extraction rate and capacity utilization, as well as optimize the product structure.

On the funding and operational side, Shangaohuan Energy's issuance of shares to specific investors has been recently completed. With the funds raised in place, the company will receive financial support, providing assurance for subsequent mergers and acquisitions integration and project operations. In the first three quarters of this year, the company achieved an operating revenue of 1.074 billion yuan, a year-on-year increase of 3.67%; net profit attributable to shareholders of the listed company was 91.1688 million yuan, a year-on-year increase of 73.29%.

The signing of the strategic cooperation agreement with Sinopec Oil is expected to further strengthen SANGAO Environmental Protection Technology's industry chain collaboration in the field of catering waste oil resource utilization, providing new development opportunities for the company to expand related businesses and promote the reutilization of catering waste oil resources.

[Source: Securities Daily]

[Editor: Xiao Neng]