Presently, China is one of the biggest mineral diesel users in the world, consuming about 60-70 million tonnes of mineral diesel every year.

Although the Chinese Government has announced its plan to support the use of biodiesel, the development of bioethanol is of higher priority, with the construction of the world's largest bio-ethanol production plant (approx. 600,000 tonnes / year) in Changchun, Jilin Province.

Currently, neither any special regulations nor tax exemptions for biodiesel are implemented in mainland China and Hong Kong. All producers are manufacturing biodiesels with accordance to the German DIN E 51606 FAME standard. However, some of them have started to adapt to the EN14214 specifications. 

In China, there are several feedstock available for biodiesel production, i.e., rapeseel oil, cottonseed oil and recycled frying oil.

Hong Kong remains the biggest consumer of biodiesel in the nation, with major use in flet operators and limited number of private light vehicles. However, it is foreseable that the application as transportation fuels is expected to grow, due to the following facts: -

• Vehicle ownership rate was around 8.5 vehicles per 1000 persons (2003) and expected to growth by 6 folds by 2020 to 52 vehicles per 1000 persons.
• Transportation energy demand is estimated to grow by 6.4% per year from 1999 to 2020, i.e., will overtake Japan by 2005 to become the world's second largest consumer of transporation fuels.
• Hong Kong Government is collaborating with the University of Hong Kong in conducting the feasibility study of Biodiesel as an automobile fuel in Hong Kong. The success of the project shall confirm the promotion of this fuel in Hong and China.