China’s Dongde Energy has reportedly started an eSAF (electrolysis-based Sustainable Aviation Fuel) project worth $1.6 billion in Yiwu county, Xinjiang Uygur Autonomous Region. The project is reported to target production of 100,000 tonnes per year of sustainable aviation fuel (SAF), combining 2 GW of wind power with a green hydrogen facility of 50,000 tonnes per year. The news was reportedly published on October 1, 2026, and the project is said to be linked to the company’s other pilot and commercial-scale facilities.
It is reported that the project integrates renewable power, green hydrogen, carbon capture and fuel production into a single carbon-recycling system. Electricity generated by wind power is said to be used to produce hydrogen, which is then combined with captured carbon dioxide to produce aviation fuel. The site is reported to be in Yiwu county, Xinjiang.
According to the report, construction has already begun, but a specific completion target has not been disclosed. The EPC (Engineering, Procurement and Construction) contractor and the process technology licensor have reportedly not been identified. The project is said to take the form of an integrated supply chain in which electrolysis, carbon dioxide capture and fuel synthesis facilities are connected within one project.
The main figures reported are as follows. Total investment is $1.6 billion, and annual SAF production capacity is 100,000 tonnes. Captured carbon dioxide of 400,000 tonnes per year is reportedly planned as feedstock. Wind power capacity of 2 GW is planned, and the green hydrogen facility is said to have a capacity of 50,000 tonnes per year.
Dongde Energy is reported to be pursuing eSAF facilities at several scales. A pilot facility of 1,000 tonnes per year is said to exist in Sichuan, and a plant of 10,000 tonnes per year in Inner Mongolia is reported to have begun commissioning in September 2026. This indicates a staged scale-up from a 1,000-tonne pilot to a 10,000-tonne plant and then to a 100,000-tonne project. The total investment of $1.6 billion is reported to cover the wind, hydrogen, carbon capture and fuel production facilities.
Xinjiang is known as a region rich in renewable resources such as wind and solar power and equipped with existing coal-chemical infrastructure. The project is said to be an attempt to use these conditions to shift the traditional chemical industry toward low-carbon products. The aviation sector is classified as difficult to electrify, and synthetic aviation fuel is reportedly discussed as an alternative fuel.
It is reported that eSAF is characterized by bundling power, hydrogen, carbon capture and fuel synthesis facilities into one project, because it uses hydrogen made from renewable power and captured carbon dioxide as feedstock. For this reason, whether power supply, hydrogen production and carbon dioxide sourcing operate in coordination is said to be a factor in project success, in addition to the performance of individual units. The staged approach of scaling from pilot to thousands, tens of thousands and then 100,000 tonnes is known as a way to confirm process stability step by step. Securing 400,000 tonnes per year of carbon dioxide on a stable basis is mentioned as a common challenge for this type of project. How hydrogen production and synthesis are operated in line with output fluctuations of wind power is also said to be an important operating factor.
First, as construction has reportedly already begun, attention is said to be on when a completion target will be disclosed. Second, how the EPC contractor and process technology licensor are determined is also reported as a matter to watch. Third, operating results of the 10,000-tonne-per-year plant in Inner Mongolia, which began commissioning in September 2026, may serve as a technical basis for this 100,000-tonne project. Fourth, whether the 2 GW wind capacity and 50,000-tonne-per-year green hydrogen facility are built as planned, and how the supply chain for 400,000 tonnes per year of captured carbon dioxide is configured, are also said to be notable. Finally, the schedule for Dongde Energy’s expansion across Sichuan, Inner Mongolia and Xinjiang, and whether offtake or sales agreements for the product are disclosed, are reported as items to watch.