Interview with China Aviation Oil Feng Hai： Bio-aviation oil is the future development direction of aviation energy and proposes to establish China zero-carbon standard.

Since September 5, the fuel surcharge for air tickets has been lowered again, but it is still at a high price compared with the beginning of the year. For domestic flights over 800 kilometers, every adult passenger still has to pay the fuel surcharge 120 yuan.

The additional cost brought by oil price fluctuation is also a challenge for civil aviation enterprises. In addition, under the background of "double carbon", how to reduce the use of traditional aviation kerosene is still the focus of carbon emission reduction. As a major aviation fuel supplier in China, how does China Aviation Fuel Group respond to the new challenges and opportunities in the aviation energy field?

On September 4th, 2022, the 4th International Cooperation Summit on the Aerial Silk Road, the key forum of China International Fair for Trade in Services, was held in Beijing. During the summit, Feng Hai, executive director and general manager of China Aviation Oil Group International Holdings Co., Ltd., proposed the initiative of "Zero Carbon Airport and Park". In an exclusive interview with national business daily reporter (hereinafter referred to as NBD), he said that China Aviation Oil is developing the commercial application of bio-aviation oil, and stressed that it is necessary to seize the opportunity, overtake in corners and establish the China standard.

Feng Hai, Executive Director and General Manager of China Aviation Oil Group International Holdings Limited

Image source: Photo courtesy of the organizer

NBD: Why do you propose to build a "zero carbon airport and park"?

Feng Hai:The initiative of "zero-carbon airport and park" put forward by me this time is far beyond the scope of aviation fuel. After the initiative was put forward, some foreign companies were also very interested and asked to join the initiative.

I think China should establish our own low-carbon and zero-carbon standard system. If, as in the past, many standard systems are established by Europe and America, China’s future (green and low-carbon) development will also be passive, so we should take the initiative this time. There is still a lot to go in the future, but at least we are not too late.

In addition, we should also establish a zero-carbon and low-carbon laboratory. Because if we want to achieve zero carbon and reduce carbon, science and technology are the key. We should transform zero carbon and low carbon technology into results through scientific and technological means and innovation, so that we can finally achieve the development goal of low carbon and zero carbon.

NBD: What business opportunities are expected to be driven by your initiative of "Zero Carbon Airport and Park"?

Feng Hai:If China builds the first zero-carbon airport and park, it will become a city’s business card and drive the related green economy. In terms of power supply problems to be solved by the airport, for example, in Beijing Daxing Airport, there are photovoltaic systems on both sides of the runway, which is an opportunity for the new energy industry. In addition (involving) green buildings, which has also driven a big industry.

In the future, hydrogen energy may become the ultimate energy for human beings, so we can consider setting up a hydrogen refueling station in the airport. Of course, there are industries such as bio-jet fuel.

In this initiative of zero-carbon airport and park, we are actually looking for a pilot airport, a pilot park and a pilot air route, including a pilot hydrogen refueling station and a pilot green energy supply. We also hope to establish an innovation laboratory, constantly research and develop related technologies, and promote industrial development.

NBD: Civil Aviation Administration brought carbon market into the "14th Five-Year Plan"Civil aviation developmentPlanning, do you think China aviation industry is facing an urgent moment?

Feng Hai:Some standards and technologies of jet fuel were leading in Europe at the beginning. I think that our civil aviation enterprises and refineries in China must have their own plans and standards for bio-jet fuel.

This time, we set up a global forum of 30 people on "Zero Carbon Airports and Parks", which is also (hopefully) to carry out international cooperation, learn from international advanced experience, self-digest, self-innovate and self-improve, and there is still great potential for future development.

NBD: Since the beginning of this year, international oil prices have continued to run at a high level. What do you expect the future price trend of aviation kerosene?

Feng Hai:The high price of crude oil is related to supply and demand, but I personally think that the relationship is not particularly big. It may be that international speculators and concerns about the market have led to higher international oil prices. However, the high price of crude oil also stimulated and promoted the development of green energy to some extent.

NBD: What challenges did the high oil price and epidemic situation bring to China Aviation Oil? How does the company respond?

Feng Hai:In fact, not only China Aviation Oil, but also civil aviation enterprises have been hit hard by the epidemic. Because of the epidemic control, many airlines grounded; Compared with 2019, international flights were almost interrupted, and the consumption of jet fuel on international flights was relatively large.

In fact, the development of China Aviation Oil is relatively passive at present, and the challenge is also enormous. Because "aviation" is aviation and "oil" is energy, we are at the junction of the two industries. The sharp fluctuation of oil prices has a great impact on us, and we are also facing a great impact on the aviation market.

However, I think China Aviation Oil will tide over the difficulties soon. With the stabilization of epidemic prevention and control and the gradual increase of the number of international flights, there may be good development prospects in the future. China Aviation Oil Co., Ltd. is also diversifying its operations and optimizing and controlling its costs internally. Last year, China Aviation Oil was the only Fortune 500 enterprise among our civil aviation enterprises.

NBD: What innovations does China Aviation Oil have in aviation energy?

Feng Hai:In fact, we started innovation in aviation energy very early. Internationally, we hosted a symposium on biofuels with the American Chamber of Commerce. There is a special meeting on the sustainable development of bio-jet fuel at this year’s European Biomass Conference. Tsinghua University, CAAC, Sinopec and refineries of bio-jet fuel all participated in this forum, which also spread the voice of China on the sustainable development of bio-jet fuel.

In addition, we actively promoted the commercial application of bio-jet fuel, and launched a test flight of bio-jet fuel in 2010. Now, on the one hand, we should develop the commercial application of bio-jet fuel, and at the same time, we should export bio-jet fuel as a product to Europe. It should be said that it is imperative in the future. Therefore, we should seize the opportunity. If we take the lead in going out, we can say that we can overtake in corners and (establish) China’s own standards.

NBD: Under the background of persistently high international oil prices, has the cost problem of bio-fuel been solved?

Feng Hai:Due to technology and raw materials, the cost of our bio-jet fuel is indeed about two or three times higher than that of traditional fossil jet fuel, or even higher. But (bio-jet fuel) is the future development direction. Companies such as Sinopec are investing in the research and development and production of bio-jet fuel, and I think there is great potential in the future.

In fact, when green energy was first promoted, the government would introduce some preferential policies to support the industry. In the future, if the Civil Aviation Administration formulates some relevant industrial preferential policies and gives some support at the beginning, it will also promote the development of bio-jet fuel.

For example, if our airlines in China use high-priced bio-jet fuel, they can make some tax reductions in proportion; Or take a flight with bio-jet fuel, and passengers have some discounts on their air tickets.

NBD: What is the current status of China in terms of bio-fuel technology?

Feng Hai:Compared with the world, China is not backward, but it is not ahead. So we should seize the time and seize the opportunity.

China has strong advantages in resource integration and aggregation, but it may still need efforts in technology transformation. If we want to develop, the innovation of mechanism mode is very important, and the early policy support is also very important.

The Civil Aviation Administration also put forward green development and innovative development in the "Tenth Five-Year Plan" for civil aviation development. I think this opportunity is for all civil aviation people and all civil aviation enterprises.

(Intern Hu Jizhao also contributed to this article)

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