China Launches First Marine Biofuel Blending Pilot in Zhoushan for Cleaner Fuels
Published: 18 Mar 2026
Author: Precedence Research
China Introduces First Marine Biofuel Blending Pilot in Zhoushan
In February 2026, China authorized its inaugural pilot program for domestic bonded blending and export of marine biofuel, authorized by the Ministry of Commerce for Zhoushan city in the Zhejiang Pilot Free Trade Zone. This policy shift enables local production and export of cleaner fuels.
Decarbonization Goals
The pilot project is a part of a much larger strategy to support the country's sustainable shipping goals and nullify the impact of international trade regulations on the domestic biofuel sector. The Ministry of Commerce approved the "Zhoushan Biofuel Oil Blending Supervision Plan" to monitor the entire process, from feedstock handling to final product certification. In 2025, Singapore will keep its status as the top global bunkering hub by supplying 1.36 million metric tons of biofuel oil, a 55.6% annual increase. During the same period, China’s biofuel bunkering reached approximately 150,000 metric tons, a volume primarily supported by imports.
According to Towards Chem&Materials, the marine lubricants market size accounted for USD 8.85 billion in 2025 and is predicted to increase from USD 9.26 billion in 2026 to approximately USD 13.94 billion by 2035, expanding at a CAGR of 4.65% from 2026 to 2035 as seaborne trade is rapidly increasing globally.
Despite having plenty of waste-based feedstocks such as used cooking oil, China's marine biofuel growth trails global leaders. This lag is primarily driven by strict regulatory hurdles regarding fuel blending and export limits.
Cost Reduction and Efficiency to Enhance the Marine Lubricants Market
- By enabling blending and bonding directly within Zhoushan rather than via international middlemen, it is expected to save around $80 per tonne on operations.
- The ongoing industrialization and urbanization are increasing trade volumes, which results in higher demand for shipping.
- Regulations such as the EPA’s Vessel General Permit (VGP) standards optimise the use of sustainable biodegradable lubricants with high-efficiency oils and low emissions.
- New technology advanced engine necessitates cutting-edge lubricants like synthetic oils, which give better thermal stability, wear protection, and oxidation resistance.
- A rapid transition towards digital monitoring services and condition-based maintenance enables optimized lubricant use, which raises the need for cutting-edge lubricant services.