Etihad Airways has partnered with World Energy, a carbon-net-zero solutions provider, to operate the first NetZero flight powered entirely by sustainable aviation fuel. Photo: Etihad Airways
Etihad Airways has partnered with World Energy, a carbon-net-zero solutions provider, to operate the first NetZero flight powered entirely by sustainable aviation fuel. Photo: Etihad Airways
Etihad Airways has partnered with World Energy, a carbon-net-zero solutions provider, to operate the first NetZero flight powered entirely by sustainable aviation fuel. Photo: Etihad Airways
Etihad Airways has partnered with World Energy, a carbon-net-zero solutions provider, to operate the first NetZero flight powered entirely by sustainable aviation fuel. Photo: Etihad Airways

Can leftover waste oil from restaurants power planes?


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There is a ritual involved in creating the perfect Sichuan hot pot and it involves fat — lots of it. Diners first immerse slivers of meat in a spicy soup rich in molten animal tallow, then dip each morsel in a plate of vegetable oil, before finally devouring it.

It is a rich delicacy that produces about 12,000 tonnes of waste oil each month in the Chinese city of Chengdu.

So, in 2016, a start-up began exporting some of that leftover restaurant grease to Europe and Singapore, where it is recycled into fuel pure enough to fly aircraft.

Responsible for about 2 per cent of the world’s total emissions of planet-warming gases, the aviation industry is under pressure to find greener ways to power its jet engines.

Several major airlines including British Airways, Cathay Pacific Airways and Delta Air Lines, have pledged to replace about 10 per cent of their jet fuel with a sustainable alternative by 2030.

More than 50 have started to experiment with it, but cleaner substitutes are still being developed.

Waste oil from kitchens is emerging as a major source of sustainable jet fuel because it does not displace food production or encourage deforestation to make way for crops.

China is already the largest exporter.

“Our mission is to make gutter oil fly to the sky,” said Zhong Guojun, vice president of Sichuan Jinshang Environmental Technology, which is behind the project.

The Chengdu-based company collects used oil, mostly from hot pot restaurants in the Sichuan capital of 16 million and removes impurities such as sodium and metal particles.

Its end product is a biofuel precursor usually called industrial mixed oil, which is then packed on ships that travel to Shanghai. From there it is exported to Neste Oyj, the world’s largest producer of sustainable aviation fuel, and global energy companies including BP and Eni SpA, to be further refined into biodiesel or jet fuel.

Jinshang began to export the leftover fat for industrial use in 2016, when demand for biofuels from international refiners first took off.

China consumes more edible oil than any other country — more than 41 million tonnes a year. So far, less than 3 million tonnes of it ends up in the supply chain for biodiesel, a major type of biofuel that has surged in price amid rising European demand, the state-owned People’s Daily reported last year.

That leaves a lot of room for growth, especially as governments and industry regulators tighten rules to meet emissions targets that are key to tackling climate change.

The International Civil Aviation Organisation launched a carbon offsetting and reduction scheme in 2016 that encourages the use of sustainable fuels in addition to technical and operational improvements.

The EU is also tightening its rules, introducing requirements that its planes and airports blend in 5 per cent sustainable aviation fuels by 2030, gradually rising to 85 per cent in 2050.

Sustainable aviation fuel remains much more expensive than its conventional counterpart, but those targets are forcing airlines to respond, with some teaming up with start-ups developing cleaner technology.

  • Emirates successfully tested a Boeing 777 with one engine entirely powered by sustainable aviation fuel. All photos: Andrew Scott / The National
    Emirates successfully tested a Boeing 777 with one engine entirely powered by sustainable aviation fuel. All photos: Andrew Scott / The National
  • Specially chosen pilots flew the plane for an hour to test the performance of the sustainable aviation fuel
    Specially chosen pilots flew the plane for an hour to test the performance of the sustainable aviation fuel
  • Sustainable aviation fuel emits 75-80 per cent less CO2 per lifecycle
    Sustainable aviation fuel emits 75-80 per cent less CO2 per lifecycle
  • By 2030, every plane made by Boeing will fly using sustainable aviation fuel
    By 2030, every plane made by Boeing will fly using sustainable aviation fuel
  • It is the first commercial flight to use biofuel
    It is the first commercial flight to use biofuel
  • Emirates plans to run the same test flight with an Airbus A380
    Emirates plans to run the same test flight with an Airbus A380
  • The Boeing 777-300ER was the first in the Mena region to be powered by 100% SAF in one of two engines
    The Boeing 777-300ER was the first in the Mena region to be powered by 100% SAF in one of two engines

“When there is a demand, the supply will catch up, and the demand is already here,” said Chong Cheng Tung, associate professor at the China-UK Low Carbon College, Shanghai Jiao Tong University.

“So either you switch your fuel to green fuel, like bio jet fuel, or you have to pay a lot of premium for travelling.”

Neste last year announced plans to invest 1.9 billion euros ($2.05 billion) to expand its renewable product capacity. It aims to be able to produce 1.2 million tonnes of sustainable jet fuel a year in 2026.

While there were only two companies in the world making sustainable aviation fuel at a commercial scale before 2021, several big players, including TotalEnergies, Chevron Corp, Eni, and BP have since begun small-scale production and plan to ramp up, BloombergNEF said.

“These companies will need to buy more waste cooking oil, and the Chinese market will for sure see growth,” said Ye Hao, head of Jinshang’s global business team.

Jinshang aims to nearly double its production capacity this year by building new facilities and collecting more oil from provinces beyond Sichuan, the company said.

It also plans to build facilities to refine the gutter oil into biofuel itself.

But rising demand from airlines could eventually outstrip China’s supply. Waste fats, oils and greases may be able to meet about 4 per cent of global demand for jet fuel by 2030, BloombergNEF has estimated.

“When we reach capacity and all these food waste oils have been utilised,” said Mr Chong. "Then we have to look for other feedstocks.”

Ovo's tips to find extra heat
  • Open your curtains when it’s sunny 
  • Keep your oven open after cooking  
  • Have a cuddle with pets and loved ones to help stay cosy 
  • Eat ginger but avoid chilli as it makes you sweat 
  • Put on extra layers  
  • Do a few star jumps  
  • Avoid alcohol   
ON%20TRACK
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Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav

3.5/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The specs: 2017 GMC Sierra 1500 Denali

Price, base / as tested Dh207,846 / Dh220,000

Engine 6.2L V8

Transmission Eight-speed automatic

Power 420hp @ 5,600rpm

Torque 624Nm @ 4,100rpm

Fuel economy, combined 13.5L / 100km

match info

Maratha Arabians 138-2

C Lynn 91*, A Lyth 20, B Laughlin 1-15

Team Abu Dhabi 114-3

L Wright 40*, L Malinga 0-13, M McClenaghan 1-17

Maratha Arabians won by 24 runs

THE BIG THREE

NOVAK DJOKOVIC
19 grand slam singles titles
Wimbledon: 5 (2011, 14, 15, 18, 19)
French Open: 2 (2016, 21)
US Open: 3 (2011, 15, 18)
Australian Open: 9 (2008, 11, 12, 13, 15, 16, 19, 20, 21)
Prize money: $150m

ROGER FEDERER
20 grand slam singles titles
Wimbledon: 8 (2003, 04, 05, 06, 07, 09, 12, 17)
French Open: 1 (2009)
US Open: 5 (2004, 05, 06, 07, 08)
Australian Open: 6 (2004, 06, 07, 10, 17, 18)
Prize money: $130m

RAFAEL NADAL
20 grand slam singles titles
Wimbledon: 2 (2008, 10)
French Open: 13 (2005, 06, 07, 08, 10, 11, 12, 13, 14, 17, 18, 19, 20)
US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
Prize money: $125m

Updated: February 18, 2023, 4:00 AM