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JOURNEY · DETAIL
Zhuoyue New Energy: From a Small Longyan Factory to Exporting Biodiesel Made from Waste Cooking Oil to Europe
Founded: Ye Huodong · Longyan Zhuoyue New Energy Co., Ltd. (including Xiamen Zhuoyue Biomass Energy Co., Ltd.)
JOURNEY
Key Fields
FIELD STAMPSIndustryEnergy
RegionChina
ScaleMid-size
ChannelOther
Origin
In the early 2000s, the issue of 'gutter oil' (waste cooking oil) flowing back into the food supply chain was rampant, yet regulatory oversight was nonexistent. Founder Ye Huodong recognized the value of converting waste oils into energy. Around 2002, in Longyan, Fujian, he began industrial-scale production of biodiesel from waste cooking oils, achieving what no one else had at the time: blocking gutter oil from entering the food chain while producing a diesel substitute. Supported by national '15th Five-Year' and '11th Five-Year' science and technology projects, the team first increased conversion rates from 70-80% to 98%, then built a factory in Xiamen to scale up, targeting long-term demand driven by European carbon reduction policies.
Milestones
2002
Inception Turning Point
Launched the waste oil-to-biodiesel project in Longyan, Fujian, around 2002. At the time, domestic waste oil collection was fragmented, and most peers viewed the business as mere 'swill collection.' The team chose the most difficult technical path, leveraging national science and technology project resources to refine the reaction process, becoming one of the first enterprises to achieve industrialization.
2008
Expansion Growth
The Xiamen factory was completed and put into operation around 2008, and Xiamen Zhuoyue Biomass Energy Co., Ltd. was established. The technology enabled the production of approximately 980 kg of biodiesel from 1 ton of waste oil, achieving a 98% conversion rate and securing multiple national patents. Xinhua News Agency reported on their 'turning waste into treasure' approach. During this period, over twenty small refineries in Fujian collapsed within a year or two due to technical and financial constraints, making the company a survivor.
2019
IPO PMF
Listed on the Shanghai Stock Exchange STAR Market on November 21, 2019 (Stock Code: 688196), raising approximately 870 million RMB in its IPO. It became the first 'biodiesel concept' stock, validating the capital value of the gutter oil-to-fuel business. Funds were primarily invested in long-term capacity expansion and R&D.
2022
Peak Exports to Europe Growth
Benefiting from the double-counting policy for waste-based fuels under the EU's Renewable Energy Directive, the company's biodiesel exports to Europe surged. Around 2022, revenue reached the 4 billion RMB level. Most products entered the European market via ports in the Netherlands, making Fujian the largest province for biodiesel exports in China, with the company ranking among the industry leaders.
2024
Trade Winter Failure
The EU launched an anti-dumping investigation into Chinese biodiesel, leading to the imposition of tariffs ranging from 10% to 35.6% in 2025. Coupled with the cancellation of the 13% export tax rebate for waste oils at the end of 2024, profit margins were squeezed from both sides. Both prices and volumes fell, causing many small and medium-sized players to face capital chain ruptures and exit the market, significantly pressuring the company's revenue and gross margins.
2025
Transition to Domestic Application Inflection Point
On November 26, 2025, the company participated in the first domestic B5 biodiesel bunkering for a harbor tugboat at the Haicang Port area in Xiamen. Chairman Wang Gaoxiang publicly emphasized full-process independent R&D, marking the company's shift from pure exports to domestic marine fuel pilots. Simultaneously, exports were smoothed through overseas subsidiaries in the Netherlands and Singapore to mitigate tariff impacts, forming a dual-track strategy of exports and domestic sales.
Turning Points
- Shifted from waste oil collection to betting on EU renewable energy policy dividends, making exports to Europe the primary focus.
- Raised approximately 870 million RMB via the 2019 STAR Market IPO, turning the technical narrative into ammunition for capacity expansion.
- After the EU anti-dumping duties were imposed, stopped relying solely on European exports and pivoted to domestic B5 marine fuel and SAF pilots.
- Established distribution channels through overseas subsidiaries in the Netherlands and Singapore to bypass single-market tariff risks.
Failures & Pitfalls
- Early industry growth was chaotic; most of the twenty-plus small factories in Fujian collapsed within a year or two, and even survivors struggled with insufficient raw material supply.
- Guerrilla-style raw material collection led to high procurement costs and unstable supply, chronically constraining capacity utilization.
- The EU anti-dumping investigation starting in 2023 severely damaged export profits, breaking the model of relying on low-cost exports to Europe.
- The cancellation of export tax rebates in 2024 forced the abandonment of the pure raw material and primary product export route, putting short-term cash flow under pressure.
关键成功要素
- Achieved a 98% conversion rate for waste oil and secured patents; technical barriers provided the foundation to weather two decades of cycles.
- Obtained EU sustainability certifications like ISCC in advance, securing the compliance ticket to enter the European market.
- Built a self-operated waste oil collection network, transforming fragmented upstream resources into a stable raw material pool.
- Quickly pivoted to domestic marine fuel and SAF applications after encountering trade barriers, avoiding over-reliance on a single policy-driven market.
Lessons
- Businesses built on policy dividends must assume those dividends will disappear; export models must prepare for domestic sales during prosperous times.
- Uncontrolled and fragmented upstream raw materials are the biggest Achilles' heel in this business; a collection network is more valuable than a factory.
- Certification and compliance are not costs but moats; qualifications like ISCC determine whether you can stay at the table.
- Every percentage point increase in technical conversion rate is cash flow; in a low-margin, capital-intensive industry, survival depends on process efficiency.
Core Data
- STAR Market IPO Funds：Approx. 870 million RMB (Nov 2019) (Based on public data, not independently verified)
- Annual Biodiesel Production：Approx. 300,000 tons (2025 level) (Based on public data, not independently verified)
- Annual Waste Oil Processing：Over 400,000 tons (Based on public data, not independently verified)
- Waste Oil Conversion Rate：98% (1 ton of waste oil yields approx. 980 kg of biodiesel) (Based on public data, not independently verified)
- EU Anti-dumping Duty on Chinese Biodiesel：10% to 35.6% (Imposed in 2025) (Based on public data, not independently verified)
- Domestic Marine Fuel Milestone：First domestic B5 bunkering completed at Xiamen Port in Nov 2025 (Based on public data, not independently verified)
Competitors / Peers
Among domestic peers, Jiaao Environmental Protection produces biodiesel from waste oil while also investing in eco-friendly plasticizers; regional players like Hebei Jingu and Tangshan Jinlihai compete for northern waste oil resources. Zhuoyue New Energy's differentiation lies in its Xiamen port location, its status as the largest exporter to Europe, and its STAR Market financing capability. International benchmarks include raw material traders in the Netherlands and major HVO producers like Neste, which are shifting focus toward SAF and high-value HVO products, forcing Chinese companies to upgrade from exporting raw materials to exporting fuels. Meanwhile, food waste treatment companies like Shangao Thermal Power are entering from the upstream collection side, causing industry profits to migrate toward both the upstream and deep-processing ends.