Zhuoyue New Energy will build a $98M biofuel plant in Thailand, expanding its Southeast Asian footprint amid export challenges.
Chinese biodiesel pioneer Zhuoyue New Energy has unveiled plans to invest approximately CNY700 million (USD97.6 million) in a new biofuel production facility in Thailand, underscoring its commitment to international expansion and renewable energy development. The project will be located in Chonburi province and executed in two distinct phases, the company announced recently.
In the initial phase, Zhuoyue will establish a production capacity of 300,000 tons of biodiesel per year, with a projected construction timeline of 12 months. The second phase will focus on producing 100,000 tons annually of either hydrotreated vegetable oil (HVO) or sustainable aviation fuel (SAF), aligning with growing global demand for cleaner alternatives in aviation and road transport.
Zhuoyue has already completed all necessary regulatory formalities to move forward with the Thai project. This includes offshore investment registration with the Chinese government, securing a formal approval certificate from Thailand’s Board of Investment, and signing a land lease agreement for the site of the plant. Based in China's Fujian province, Zhuoyue has long been recognized as a trailblazer in the domestic biofuel sector. It was the first Chinese company to commercialize biodiesel production from waste oils and has maintained leadership in production, sales, and exports for several consecutive years.
The company’s robust supply chain is centered on a reliable waste oil collection network that spans both China and Southeast Asia. In 2023 alone, Zhuoyue sold 376,000 tons of biodiesel, bringing in revenues of CNY3.3 billion (USD462 million), which constituted approximately 93% of its total annual income. Notably, export sales made up a dominant share, nearing CNY3.2 billion.
Apart from the Thai venture, Zhuoyue is also constructing another biodiesel production facility in Singapore. This plant, with an expected annual capacity of 100,000 tons, is scheduled to commence operations later this year. Its primary purpose will be to meet Singapore's demand for low-carbon marine fuels, given the city-state’s status as the world's largest bunkering port.
Despite its international growth, Zhuoyue faces certain trade challenges. In February, the European Union imposed anti-dumping duties on Chinese biodiesel imports, ranging from 10% to 35.6%, with sustainable aviation fuel being exempt. Zhuoyue specifically was hit with a 23.4% tariff, which will remain in effect for five years. While this presents a hurdle for exports to Europe, the company’s strategic investments in Southeast Asia and Singapore are expected to diversify its market exposure and enhance its competitiveness in the global biofuels arena.
