Bece Legend Group Co.Ltd(000803) 28 announced on the evening of February 28 that Shanghai Lushi renewable energy Co., Ltd., a holding subsidiary of the company, received the framework agreement and long-term agreement of litasco SA (hereinafter referred to as “Luke company”) on purchasing kitchen renewable oil products. Shanghai Lushi plans to supply Luke with at least 100000 metric tons of UCO from February 7, 2022 to December 31, 2022.
Bece Legend Group Co.Ltd(000803) said that the performance of this agreement is expected to have a positive impact on the company’s operating performance in 2022, which is conducive to improving the company’s overall profitability and asset quality. It is understood that the large order signed by Bece Legend Group Co.Ltd(000803) this time is subject to the market price policy. Benefiting from the increased demand for renewable energy in the “double carbon” era, the price of kitchen waste edible oil continued to rise in 2021, which has continued to rise from 5000 yuan / metric ton at the beginning of the year. Now the domestic trade price exceeds 9000 yuan / metric ton, and it is still in an upward trend in the near future.
According to the announcement, litasco group was established in Switzerland in 2000. Its business scope covers the United States, Europe, the Middle East and Asia. It is one of the major traders of crude oil and refined oil products in the world and deals with many suppliers and customers including major oil companies in the world.
According to public information, UCO (waste edible oil) is composed of edible oil and inedible oil produced during the production, processing, use and consumption of meat. It is the main raw material for the production of biodiesel, including waste kitchen oil, gutter oil, swill oil, fried old oil, range hood condensate, etc. UCO is one of the most promising biomass diesel raw materials. It has become a star product of carbon reduction because of its secondary use. The EU mandated that the proportion of biofuels mixed in the transportation sector should reach 10% in 2020 and 14% in 2030.
In terms of emission reduction calculation, waste oil biodiesel has outstanding advantages. On December 8, 2021, Shanghai Petroleum and natural gas trading center and Bece Legend Group Co.Ltd(000803) signed a strategic cooperation agreement on jointly promoting the establishment of UCO trading varieties in the trading center. The two sides reached a consensus on the trading rules, quality standards and overall development norms of UCO varieties, and jointly promoted the creation of new UCO trading varieties in the trading center. On the morning of December 13 last year, the new variety of industrial grade mixed oil (UCO) launched by Shanghai Petroleum and natural gas trading center was officially launched and realized the first transaction.
