Shell to Buy Biodiesel from Chinese Company

The Singapore subsidiary of oil giant Royal Dutch Shell has signed a US$155M biodiesel supply deal with Chinese chemical product company Jiaao Enprotech, the Oils & Fats International reported last week citing Yicai Global.  Based on the deal, Shell International Eastern Trading will buy a total of 150,000 tons of European Union-standard biodiesel fuel from the Chinese company over a three-year period starting from July, the report added. The contract was due to start when Jiaao Enprotech’s new biodiesel production line started operation, trebling the firm’s current 50,000 tons/year output.

The new contract was not the first time the two companies had collaborated. Jiaao Enprotech said it had supplied 3,042 tons of  biodiesel to Shell International last year and in 2018 it had supplied 3,974 tons. Jiaao Enprotech’s biodiesel was mainly used as a green raw material for biodegradable plastic products, with the surplus processed into biofuel products that meet EU standards for export.