China has launched a pilot programme to blend biofuel at the Zhoushan port area within the China (Zhejiang) Pilot Free Trade Zone, with operations beginning on 13 March.

The initial batch involves combining 2,000 tonnes of biodiesel with 6,300 tonnes of high-sulphur fuel oil at the Sinochem Xingzhong Oil Staging facility in Zhoushan. The blended product is intended for use as a lower-carbon marine fuel.

According to the project operator, the mixture currently contains roughly 24% biodiesel and 76% high-sulfur fuel oil. Company representatives said sourcing biodiesel from domestic refineries helps reduce supply costs and simplifies the trading process.

The blended fuel produced during the pilot phase is expected to be delivered to international vessels within about a week.

Local authorities said the initiative forms part of efforts to strengthen Zhoushan’s role in the global bonded marine fuel market.

As previously reported, Zhoushan overtook both Antwerp-Bruges and Fujairah in 2025 to become the world's third-largest bunker port in terms of sales volume, with annual sales of 8.03 million tonnes, up from 7.26 million tonnes the previous year.

As regards recent notable developments, Zhoushan has opened a bonded warehouse for LNG; launched its first newbuild dual-fuel methanol bunkering vessel, Da Qing 268; brought its first liquid-ammonia fuelling company into operation; and approved the expansion of the Zhoushan Port Free Trade Zone (FTZ) to support the development of commodity trading and marine fuel-related activities.