China Petroleum and Chemical Corp, also known as Sinopec, announced on Tuesday that they have signed a Heads of Agreement (HoA) with TotalEnergies to jointly develop a sustainable aviation fuel production unit at Sinopec's refinery in China.

The planned unit, jointly owned by Sinopec and TotalEnergies, will have the capacity to produce 230,000 metric tons of sustainable aviation fuel per year and will process local waste or residues from the circular economy, including cooking oils and animal fats.

Sinopec has developed its own sustainable aviation fuel production technology, called SRJET. TotalEnergies, already one of Europe's leading sustainable aviation fuel producers, will bring its experience and expertise in the technical, operational and distribution fields.

"The collaboration with TotalEnergies is in line with our strategy in the development of low-carbon solutions for China and the world. Sinopec is committed to providing green and low-carbon energy solutions while improving the quality and efficiency of its asset portfolio," said Ma Yongsheng, chairman of Sinopec.

According to Patrick Pouyanne, chairman and chief executive officer of TotalEnergies, the development of sustainable aviation fuels is at the heart of the company's transition strategy, as it strives to meet the aviation industry's demand to reduce its carbon footprint.

TotalEnergies has set itself a target of 1.5 million tons of annual sustainable aviation fuel production by 2030, he said.