Chengdu firm turns used hotpot oil into jet fuel feedstock

Chengdu-based Sichuan Jinshang Environmental Technology has found a new use for old hotpot oil. The company collects used cooking oil from restaurants in Chengdu and refines it into industrial-grade oil. This material is then exported to firms that turn it into sustainable aviation fuel. The company started the work in 2017 and produces up to 150,000 tonnes of the oil annually. Jinshang also plans to open a facility to produce sustainable aviation fuel (SAF) itself, which would make its annual production capacity 300,000 tonnes.

How the process works?

At hotpot restaurants in Chengdu, customers cook sliced meat and veggies in a hotpot broth that contains a lot of oil, mainly as a cooking medium. When the meal ends, the restaurant staff pours the used broth into a special filter that separates the oil from the water.


Collectors hired by the company come to restaurants across Chengdu to pick up the oil. They are called “night shift collectors.” The collected oil, mixed with water and other impurities, has a foul odor and is not refined yet. This raw material goes to Jinshang’s plant, where it is processed to remove water and impurities. The result is a clear liquid with a yellowish tint — industrial-grade oil.

It is not yet aviation fuel, however; Jinshang mainly exports the product to European, American, and Singaporean firms, which refine it further into what the aviation industry calls sustainable aviation fuel (SAF).

Chengdu-based company started the business in 2017

Sichuan Jinshang Environmental Technology started its used-oil business in 2017. The company collects used cooking oil mainly from hotpot restaurants and eateries in Chengdu, as well as KFC restaurants.

The company is able to get a plentiful supply of the waste oil that otherwise would have had to be disposed of somewhere or left to go bad. Jinshang’s factory is located in a business park on the outskirts of Chengdu. At first glance, everything looks tidy, although the unloading area has a faint hotpot aroma and orange spots on the walls and equipment.

Sustainable aviation fuel: Why it matters?

Sustainable aviation fuel (SAF) is one of the ways to decarbonize the aviation industry, which otherwise has to use energy-dense jet fuel to stay afloat. The International Energy Agency (IEA) reported last year that aviation contributed 2 percent of total energy-related carbon emissions worldwide.

Still, the aviation industry only uses a small amount of sustainable aviation fuel. According to the IEA data, SAF only accounted for less than 0.1 percent of the world’s aviation fuel consumption in 2022. One reason is price: alternative jet fuels are expensive. In order to meet the demand for SAF that the International Air Transport Association (IATA) forecasts by 2050, the world needs a much more significant source of supply.

To date, only about 3 million tonnes of SAF have been produced worldwide. According to IATA estimates, the industry will need 250 million tonnes of SAF for aviation to reach net-zero emissions by 2050. SAF, therefore, will play a crucial role in decarbonizing aviation, and the used hotpot oil is proving to be an invaluable source of this fuel.

What hotpot model means?

The Chengdu hotpot waste processing facility is an example of how a company can effectively connect the input and output of two seemingly unrelated industries. Instead of throwing used hotpot oil in the trash, restaurants in Chengdu now sort it out and hand it over to the collectors, so that the waste oil can be processed into a raw material for the aviation industry. The company not only manages to get rid of the waste but also creates new jobs and sources of income.

As for the aviation companies that use refrained oil as jet fuel feedstock, they benefit from the hotpot model because it allows them to obtain an alternative solution for sustainable aviation fuel. Moreover, the described system is beneficial for society since it helps to reduce food waste.