Sustainability – Shaphargroup

Powering the Future of Flight and Fuel — Sustainably

Shaphargroup leads the energy transition by refining next-generation UCO feedstocks into premium biofuels — minimizing waste, maximizing impact, and ensuring cleaner skies for future generations.

At Shaphargroup, sustainability is not just a commitment — it’s our operational DNA. Every drop of UCO we collect and refine represents our mission to close the loop on waste, support the aviation industry’s decarbonization goals, and build a circular bioeconomy. From sourcing traceable UCO to supplying certified feedstock to SAF refineries, we enable climate-focused innovation at every stage of our value chain.

We invite partners, suppliers, and customers to be part of a collective mission — one that fuels growth, responsibility, and global impact.

Our Sustainability Vision

At Shaphargroup, our vision for sustainability goes beyond compliance—it defines who we are. We are committed to building a cleaner, low-carbon planet through innovative renewable energy solutions, responsible sourcing, and advanced UCO refining technologies.

Strategic Alignment:
- Paris Climate Agreement: Contributing to the global target of limiting temperature rise to 1.5°C.
- UN Sustainable Development Goals (SDGs): Supporting goals such as Affordable & Clean Energy (SDG 7), Responsible Consumption & Production (SDG 12), and Climate Action (SDG 13).
- EU Fit for 55 & SAF Mandates: Enabling biofuel producers and airlines to meet ambitious emissions targets.
- CORSIA & U.S. RFS: Fully compliant with international aviation and renewable fuel standards.
Impact at a Glance:
- 500,000 MT/year of premium refined UCO.
- Equivalent to 1.58 million tons of CO₂ emissions avoided annually—equal to removing over 330,000 cars from roads.
- Up to 85% GHG lifecycle reduction compared to fossil fuels.
- Full ISCC certification and blockchain-powered traceability from collection to refinery to SAF tank.
“We don’t just refine oil—we refine the future of energy.”

Circular Economy & Waste Valorization

Shaphargroup operates at the core of the circular economy, transforming waste into renewable wealth. We specialize in sourcing and refining low-grade Used Cooking Oil (UCO), animal fats, and other waste oils—materials often considered pollutants—and refining them into premium-grade feedstock for biofuel, HVO, and Sustainable Aviation Fuel (SAF) production.

Our advanced molecular distillation and refining processes ensure every drop of waste oil is upcycled into high-value, sustainable energy products. Nothing is wasted — even by-products are purified and commercialized, closing the loop on waste.

- Prevents environmental dumping and pollution from waste oils.
- Enables airlines and refineries to meet Scope 3 carbon reduction goals.
- Powers circular innovation in fuel production and product diversification.
  Key Focus Areas:
  - Waste-to-Energy Transformation: Converting over 500,000 MT of waste oils annually into clean-burning fuels.
  - Zero Landfill Strategy: All input materials and by-products are repurposed, recycled, or refined.
  - Sourcing Ethics: 100% traceable supply chain ensures compliance with EU RED II and global ESG benchmarks.
  - Blockchain Integration: Secure, transparent tracking of every supply batch, from source to refinery.
  Why It Matters:
“Waste isn’t the end—it’s the beginning of our energy cycle.”

Emissions Reduction & Climate Impact

At Shaphargroup, we are not just refining UCO — we are refining the future of energy. Our operations directly contribute to global greenhouse gas (GHG) reduction targets by supplying clean, traceable feedstocks to the biodiesel, HVO, and SAF industries.

Each metric ton of refined UCO used in biofuel production can reduce up to 90% of lifecycle GHG emissions compared to fossil fuel alternatives. With a capacity of 500,000 MT annually, our products enable partners to reduce over 1.4 million metric tons of CO₂ every year — equivalent to removing 300,000+ passenger vehicles from the road.

Key Achievements:

Carbon Avoidance: Over 1.4 million tons CO₂ emissions avoided annually through UCO-based fuels.
Verified Impact: Emissions reduction certified by ISCC (International Sustainability & Carbon Certification).
SAF Alignment: Supports aviation’s target of 10% SAF blending by 2030 under EU Fit for 55 and REFuelEU mandates.
Scope 1, 2 & 3 Alignment: Empowers corporate buyers and refiners to meet end-to-end sustainability metrics.

Strategic Partnerships:

Collaborating with SAF refiners like BlueWhales Energy to deliver HEFA-SPK fuel.
Direct traceable UCO supply lines to buyers seeking premium low-carbon inputs.

“Reducing emissions isn’t optional — it’s urgent. Every drop of our UCO helps move the world closer to net-zero.”

Emissions Reduction & Climate Impact

Key Achievements:

Carbon Avoidance: Over 1.4 million tons CO₂ emissions avoided annually through UCO-based fuels.
Verified Impact: Emissions reduction certified by ISCC (International Sustainability & Carbon Certification).
SAF Alignment: Supports aviation’s target of 10% SAF blending by 2030 under EU Fit for 55 and REFuelEU mandates.
Scope 1, 2 & 3 Alignment: Empowers corporate buyers and refiners to meet end-to-end sustainability metrics.

Strategic Partnerships:

Collaborating with SAF refiners like BlueWhales Energy to deliver HEFA-SPK fuel.
Direct traceable UCO supply lines to buyers seeking premium low-carbon inputs.

“Reducing emissions isn’t optional — it’s urgent. Every drop of our UCO helps move the world closer to net-zero.”

Innovation Through R&D & Alternative Feedstocks

At Shaphargroup, innovation is not just a department — it’s a core driver of our growth, performance, and sustainability leadership. We invest heavily in research and development to push the boundaries of UCO refinement and to explore next-generation feedstocks that meet the evolving needs of the biofuel, HVO, and SAF industries.

Our R&D Innovation Lab, located near our main refining hub in Shandong, is staffed with experienced chemists, engineers, and sustainability scientists who collaborate to:

Improve molecular distillation and oxidative desulfurization processes.
Develop multi-feedstock conversion technologies that can process not only UCO but also, vegetable oil waste, animal fats, and low-grade agricultural fats.
Create cleaner, higher-yield refining methods that reduce energy use, improve product quality, and minimize emissions.
Establish scalable purification techniques for use in HEFA-SPK and HVO-compatible SAF production.

Why It Matters: In a world racing toward decarbonization, the ability to innovate across feedstocks gives us a unique advantage — not only can we process more material, but we can also tailor the output to meet the exacting needs of our refinery partners and aviation clients.

Key R&D Highlights:

$3M+ invested in sustainable technology and lab innovation since 2022.
Successful trials converting blended oil wastes into SAF-grade feedstock.
Developed a proprietary refining protocol that delivers <1% FFA for premium-grade UCO.
Advanced lab testing ensures feedstock traceability and SAF compliance.

“At Shaphargroup, we don’t just refine oil — we refine possibilities. Our science-driven approach empowers the next generation of clean fuels.”

Traceability & Supply Chain Transparency

At Shaphargroup, we understand that sustainability is only as strong as the integrity of the supply chain that supports it. That’s why we’ve built a robust, transparent, and verifiable sourcing system that allows our partners — especially SAF and HVO producers — to trace every drop of our premium UCO feedstock from collection point to refinery, and all the way to the aircraft tank.

We ensure full compliance with EU RED II, ISCC certification, and global carbon accounting frameworks, offering complete visibility into our operations. This not only guarantees the origin and quality of feedstock but also supports the GHG reduction claims of our clients.

What This Means for Our Clients:

Proof of Origin: Every shipment comes with verifiable certificates and digital batch IDs.
GHG Tracking: Emissions savings from source to refinery are fully traceable.
Regulatory Assurance: Our feedstock complies with EU RED II, ISCC, and national biofuel mandates.
Audit-Ready: Our system is designed for full third-party verification and customer audits.

“Our clients — from top SAF refiners to global airlines — trust Shaphargroup not just for quality, but for traceability they can verify.”

Supplier Code of Conduct

At Shaphargroup, sustainability starts at the source. We hold ourselves — and our suppliers — to the highest environmental, ethical, and operational standards. Our Supplier Code of Conduct ensures every partner across our value chain contributes positively to our mission of building a cleaner, fairer, and more sustainable energy future.

This code applies to all UCO collectors, raw material providers, transport partners, and operational contractors working within or alongside our facilities worldwide.

Our Standards Include:

1. Environmental Responsibility

No illegal dumping or unsanitary collection methods.
Proper waste segregation and oil collection procedures.
Commitment to reducing water, energy, and carbon waste.
Verified UCO sources only — no fraudulent blends or ineligible materials.

2. Ethical Labor Practices

Zero tolerance for child labor, forced labor, or unsafe working conditions.
Fair wages and ethical working hours.
Commitment to gender equality and nondiscrimination.

3. Compliance & Transparency

Full documentation and traceability for every shipment.
Compliance with ISCC, RED II, and national regulations.
Participation in audits and random checks without objection.

4. Business Integrity

No tolerance for corruption, fraud, or bribery.
Confidentiality of proprietary and client information.
Honest disclosure of supply capabilities and challenges.

Supplier Engagement & Training:
We don’t just enforce standards — we invest in training, awareness, and capacity building for our suppliers. Our teams conduct regular outreach to:

Educate local suppliers on EU/US SAF regulatory changes.
Provide compliance toolkits and traceability checklists.
Assist small suppliers in becoming ISCC-compliant.

“All Shaphargroup partners must align with our Supplier Code of Conduct. We believe a clean supply chain begins with clear values.”

Our Sustainability Certifications & Affiliations

At Shaphargroup, credibility is not claimed — it’s certified.

We proudly align our operations with global sustainability standards to ensure our clients, partners, and investors can trust every liter of UCO and SAF feedstock we deliver. From refinery processes to supply chain traceability, our certifications reinforce our deep-rooted commitment to environmental excellence, compliance, and industry leadership.

Our Core Certifications:

1. ISCC (International Sustainability and Carbon Certification)

ISCC EU & ISCC PLUS Certified for sustainable biomass and waste-based feedstocks.
Ensures full traceability of Used Cooking Oil and feedstock origin.
Audited annually across sourcing, logistics, and refining.

2. RED II Compliance (Renewable Energy Directive, EU)

Fully compliant with the EU’s RED II Directive.
Our refined UCO meets GHG reduction thresholds for biodiesel and SAF production.
Verified double-counting feedstock for EU member states.

3. Environmental Impact Certifications

Waste-to-Energy (W2E) Accreditation for sustainable oil reprocessing.
Internal GHG emissions accounting audited under ISO guidelines.

4. Traceability Assurance

Blockchain-enabled tracking (pilot phase) for real-time UCO traceability from collection to delivery.
All feedstock is fully documented with digital Chain-of-Custody reports.

Industry Memberships & Partnerships:

SAF Coalition Europe – Supporting SAF scaling policy and commercial deployment.
World Bioenergy Association – Collaborating on sustainable energy transition initiatives.
China Circular Economy Association (CCEA) – Promoting innovation in UCO reuse and resource recovery.
SAF Buyer Alliance (in progress) – Engaging global airline partners committed to low-emission fuels.

“Our certifications are more than credentials — they are a reflection of the integrity that fuels every drop we deliver.”

Partner Highlights & Sustainability Impact Stories

At Shaphargroup, our partnerships are not transactional — they are transformational.
We work hand-in-hand with forward-thinking biofuel producers, SAF refiners, logistics partners, and technology innovators to push the limits of what sustainable fuel production can achieve.

This section is dedicated to highlighting how our collaborations are making measurable impacts on global emissions, circular economy models, and green innovation.

Key Partner Impact Stories:

1. BlueWhales SAF Plant (China–Europe Partnership)

Collaboration: Shaphargroup supplies refined UCO feedstock with full traceability to BlueWhales’ SAF plant in China.
Impact: Over 30,000 MT of SAF delivered to European aviation partners in 2024 alone.
Sustainability Feature: UCO sourced, refined, and verified for HEFA-SPK blendstock production, compliant with EU aviation fuel standards.
Quote from BlueWhales:
“Shaphargroup’s traceable and high-yield feedstock allowed us to scale production with unmatched sustainability compliance.”

2. REST Biofuels (Netherlands)

Collaboration: Direct offtake agreement for refined UCO to power REST’s biodiesel production.
Impact: Enabled REST to reduce feedstock volatility by 40% and expand exports to France and Belgium.
Sustainability Feature: Double-counting certified feedstock under RED II, used in B100 fuel.

3. IJsselland Biofuels B.V. (Sunoil Group)

Collaboration: Strategic supply alignment with Sunoil’s EU biodiesel blending mandates.
Impact: Helped meet GHG reduction targets and maintain fuel quality certifications.
Sustainability Feature: Continuous supply of low-FFA UCO refined under SCADA-controlled molecular distillation.

4. Airline Traceability Pilot

Collaboration: Joint pilot with airline clients to trace feedstock origin using blockchain and QR-coded verification.
Impact: Real-time assurance for aviation stakeholders regarding sustainability claims.
Sustainability Feature: Blockchain-backed chain-of-custody reports for SAF compliance validation.

“Sustainability is not a solo mission. With our partners, we are setting new benchmarks for transparency, compliance, and emissions impact in the renewable fuels ecosystem.”
— David Chijioke, Managing Partner, Shaphargroup Netherlands

Supplier Code of Conduct & Ethical Sourcing

At Shaphargroup, ethical sourcing is not just a value — it is a non-negotiable standard.

We have implemented a strict Supplier Code of Conduct (SCC) to ensure that all raw material suppliers meet the highest benchmarks in environmental, labor, and business integrity practices. Every supplier that enters our ecosystem is thoroughly vetted and continuously monitored for compliance.

Key Commitments from Our Suppliers

1. Traceable Sourcing

Every batch of UCO must come with verifiable documentation tracing its origin to legitimate and sustainable sources (e.g., food processing, commercial kitchens).
All feedstock must comply with EU RED II and U.S. LCFS traceability requirements.

2. Labor Ethics

Suppliers must not employ child labor or engage in exploitative labor practices.
All workers must be fairly compensated and provided with safe working conditions.

3. Environmental Standards

Suppliers are expected to minimize environmental pollution in collection and transport processes.
Waste oil collection must not interfere with local water systems or contribute to illegal dumping.

4. Business Integrity

Zero tolerance for corruption, bribery, or false reporting.
Regular audits and third-party compliance checks are conducted to verify data accuracy.

Enforcement & Monitoring

Third-Party Audits: We employ certified independent firms to audit supplier compliance annually.
Digital Traceability Tools: QR-based tracking and blockchain documentation allow for end-to-end monitoring from collection to final delivery.
Blacklisting Non-Compliant Suppliers: Any breach of the Supplier Code of Conduct results in immediate suspension and legal action.

“Our commitment to ethical sourcing goes beyond regulation. It is about setting a global standard that ensures every liter of UCO we refine is responsibly and transparently sourced.”

Our 2030 Sustainability Roadmap

Vision:
Shaphargroup is committed to becoming a global model of sustainable energy innovation. Our 2030 Roadmap outlines bold, measurable goals that reflect our unwavering dedication to climate action, circular economy practices, and ethical business conduct.

Core Objectives by 2030:

Scale Up Production Sustainably
- Reach 1 million metric tons/year of refined UCO capacity across Asia and Europe.
- Ensure all new facilities are designed with net-zero emissions principles.
Support the Global SAF Transition
- Supply feedstock to over 50% of Asia-based SAF plants and 25% of EU SAF demand.
- Partner with airlines and SAF producers for certified low-carbon jet fuel development.
Deepen Supply Chain Traceability
- Implement real-time digital tracking for every shipment of UCO and derivative product.
- Maintain 100% ISCC certification across global operations.
Innovate Through R&D
- Launch a second UCO Innovation Lab focused on developing new feedstocks (e.g. algae oil, rubber seed oil).
- File at least 10 patents on novel refining and molecular separation technologies.
Drive Circular Economy Practices
- Expand UCO sourcing from underserved regions through community engagement.
- Partner with local governments to develop UCO collection systems from municipalities and commercial sectors.
Empower Women and Local Communities
- Ensure 40% of managerial roles are held by women across our global offices.
- Create inclusive employment opportunities in rural and economically challenged areas.