UCO, Ucome stuck in Hebei as China tightens lockdown

Around half of China's used cooking oil (UCO) methyl ester (Ucome) biodiesel manufacturing capacity will be unable to deliver supplies because of closed highways, as restrictions intensify to curb the spread of a new wave of Covid-19 infections in northeast China's Hebei province.

A combined nameplate production capacity of around half of China's total output of 560,000 t/yr is affected. A Ucome and two UCO plants remain shut following orders to close last week, as they are located in "high-" and "medium-risk" areas of Hebei's Handan and Shijiazhuang where businesses have been closed to offer Covid-19 testing to residents.

Another two Ucome plants near Shijiazhuang plan to shut down once inventories are full, although they have not been ordered to close yet. Authorities have blocked highways out of Hebei and they are unable to trade their cargoes.

A producer in the far north of the province did not comment on the status of its plant. Feedstock UCO suppliers in Hebei with more than 100,000 t/yr capacity are also affected. An employee at one of the plants said the restrictions may continue until the lunar new year in mid-February, although the situation is still developing.

Hebei provincial health commission reported 40 new confirmed Covid-19 infections yesterday, including 39 in Shijiazhuang. Another 26 asymptomatic cases emerged in Shijiazhuang. This brings total confirmed cases in the province to 305, with another 367 cured and discharged. The government is taking strict measures to try to contain the spread of the new outbreak, although cases remain far below numbers during the first wave in early 2020.