Fathopes Energy and MotionECO have signed a cross-border agreement to supply 200,000 metric tons of used cooking oil (UCO) each year for sustainable aviation fuel (SAF) production. MotionECO will collect UCO in China, and Fathopes Energy will deliver it to partners in Europe and Singapore for conversion into SAF. The deal started with a 5,000 MT shipment to Europe in December 2023 and aims to reach full volume by 2026. This creates a stable feedstock chain for SAF, which airlines need to meet emission reduction targets under CORSIA and EU RED III. The pact supports a circular economy by turning waste oil into jet fuel, cutting greenhouse gas emissions compared to fossil kerosene. It also tightens UCO supply, which could push up prices for used cooking oil and put upward pressure on virgin vegetable oils like palm, soybean, and rapeseed oil if refiners switch feedstocks. For the SAF market, this kind of long term supply agreement is exactly what producers need to scale up and move beyond pilot volumes.
