Huaan Securities recently released its Weekly Report on Synthetic Biology: Recently, Sinopec and Saudi International Power and Water Company (ACWA Power) formally signed a contract for the Front-End Engineering Design (Feed+ Convertible EPC General Contracting) of the Yanbu Green Hydrogen/Green Ammonia Project in Saudi Arabia. According to the contract, Guangzhou Engineering Company, a subsidiary of Sinopec’s Refining & Chemical Engineering Group, will form a joint venture with a Spanish company to provide preliminary engineering services for this globally largest green hydrogen/green ammonia production complex. The contract duration is 10 months; upon completion, an EPC quotation will be submitted and the contract could be converted into a full-scale general contracting agreement.

The following is a summary of the research report:

Main point:

The “Synthetic Biology Weekly Report” published by the Chemical Industry Team of HuaAn Securities is an industry weekly that provides a comprehensive overview of companies active in the synthetic biology field—both domestically and internationally—targeting both primary and secondary markets. Currently, cutting-edge basic research in life sciences remains highly dynamic, and a global wave of biotechnology revolution is sweeping across the world, accelerating its integration into economic and social development. This revolution offers innovative solutions to humanity’s pressing challenges, including health and well-being, climate change, resource and energy security, and food security. The National Development and Reform Commission has issued the “14th Five-Year Plan for Bioeconomy Development,” signaling the imminent emergence of a trillion-dollar bioeconomy sector.

The Synthetic Biology Index is compiled by the HuAn Securities Research Institute based on publicly available announcements from listed companies and other relevant data, encompassing 58 listed companies whose businesses involve synthetic biology and related technological applications. The index is set with a base value of 1,000 points as of October 6, 2020, and covers companies across multiple sectors including chemicals, pharmaceuticals, industry, food, and biopharmaceuticals. This week (September 1–September 5, 2025), the HuAn Synthetic Biology Index rose by 2.01 percentage points to 1,218.13. Meanwhile, the Shanghai Composite Index fell by 1.18%, while the ChiNext Index rose by 2.35%. As a result, the HuAn Synthetic Biology Index outperformed the Shanghai Composite Index by 3.19 percentage points but underperformed the ChiNext Index by 0.34 percentage points.

Shenzhen Enacts Legislation to Safeguard Synthetic Biology and Secure a Leading Position in Future Industries

Recently, the 40th Meeting of the Standing Committee of the 7th Municipal People’s Congress concluded after holding its second plenary session. Shenzhen has adopted another important piece of legislation in emerging fields—the “Several Provisions of the Shenzhen Special Economic Zone for Promoting Innovative Development of the Synthetic Biology Industry.” These “Several Provisions” represent specialized legislation aimed at the full-chain development of the synthetic biology industry. Focusing on the key challenges and pain points facing Shenzhen’s synthetic biology sector, the provisions seek to build an industrial system that is enterprise-driven, market-oriented, characterized by predictable applications, and deeply integrated across industry, academia, and research. The provisions lay down specific measures covering strengthening top-level design, facilitating technology transfer and commercialization, accelerating product market entry, optimizing industrial services, and bolstering support and safeguards. These measures provide a legal framework to help Shenzhen seize global opportunities in biotechnology and industrial development and take the initiative in the growth of the synthetic biology industry. (Source: synbio Shenzhen Wave, HuAn Securities Research Institute)

There are clear standards for bio-based materials and products, as well as requirements for content and traceability labeling.

The national standard GB/T 46256-2025, "Requirements for Bio-based Content and Traceability Labeling of Bio-based Materials and Products," was recently released and will come into effect on March 1, 2026. The standard was proposed and is under the jurisdiction of the National Technical Committee for Standardization of Bio-based Materials and Degradable Products (TC380). GB/T 46256-2025 specifies the requirements for the bio-based content of bio-based materials and products, as well as the traceability labeling requirements for their bio-based content. Covering everything from the definition of bio-based content and specifications for traceability labeling to references to international systems, this standard establishes a comprehensive "identity certification" system for bio-based materials and products. It will strongly promote the standardization and regularization of the industry, providing clear guidelines for enterprise production, market regulation, and consumer choices. (Source: Specialized Committee on Degradable Plastics, HuAn Securities Research Institute)

Japan’s Three Major Chemical Giants Join Forces to Develop Bio-Based Ethylene.

On September 1, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical jointly announced the establishment of Setouchi Ethylene LLP, a limited liability partnership. The partnership aims to promote carbon-reduction technologies and capacity optimization at two ethylene production facilities in western Japan, with plans to achieve a green transition by 2030. To realize this goal, the three companies will implement measures such as raw-material substitution, introduction of low-carbon fuels, and optimization of production capacity frameworks to reduce emissions. Previously, the three parties had conducted multiple rounds of discussions on pathways toward carbon neutrality, and the establishment of the LLP is seen as a key mechanism for deepening cooperation and accelerating the green transition. In terms of technology, Asahi Kasei’s “lignin pyrolysis technology” can convert paper-making waste into ethylene feedstock. Pilot studies have shown that when biomass accounts for 20% of the feedstock, carbon emissions can be reduced by 35%, and the cost is 15% lower than that of conventional bioethanol routes. Bio-based ethylene, which uses renewable resources as feedstock, can cut carbon emissions by up to 60% compared to petrochemical-derived ethylene. Although it faces challenges such as high feedstock costs, high energy consumption, and difficulties in achieving economies of scale for plant size, bio-based ethylene has nonetheless become a key focus for international chemical companies seeking low-carbon strategies. Companies like Braskem and BASF have already made significant investments in this field. (Source: Bio-based Energy and Materials, HuAn Securities Research Institute)

CNPC officially announced its participation in the world's largest integrated green hydrogen/green ammonia project.

Recently, Sinopec and ACWA Power, Saudi Arabia’s international power and water company, officially signed a contract for the front-end engineering design (Feed+ turnkey EPC) of the Yanbu Green Hydrogen/Green Ammonia Project in Saudi Arabia. Under the contract, Guangzhou Engineering Company, part of Sinopec’s Refining & Chemical Engineering Group, will form a joint venture with a Spanish firm to provide preliminary engineering services for what will be the world’s largest green hydrogen/green ammonia production complex. The contract has a duration of 10 months; upon completion, the consortium will submit an EPC quotation and the contract could be converted into a full turnkey EPC agreement. Located in Yanbu, Saudi Arabia, the project will utilize wind and solar power to produce green ammonia. Its construction scope includes a 4.5-gigawatt electrolysis-based hydrogen production facility, an ammonia synthesis unit with a capacity of approximately 8,000 tons per day, a seawater desalination plant, a dedicated marine terminal, and other utility and ancillary facilities. The project is expected to enter commercial operation by 2030, with an annual output of 400,000 tons of green hydrogen and 2.8 million tons of green ammonia. This project not only effectively promotes the large-scale development of green hydrogen and green ammonia technologies but also marks an important milestone for Sinopec’s deepened implementation of the Belt and Road Initiative and its efforts to accelerate the global energy transition. (Source: Sustainable Plastics and Fuels, HuAn Securities Research Institute)

The nation’s first special support policy targeting the SAF industry has been released.

Recently, the inaugural “Sustainable Aviation Fuel (SAF) Technology Innovation and Industrial Development Symposium & Industry Alliance Inaugural Meeting” was successfully held in Chengdu’s Eastern New Area. At the meeting, the China Sustainable Aviation Fuel Industry Alliance was officially established. The alliance focuses on collaborative innovation among industry, academia, research, and application. Its first batch of members comprises 57 organizations, covering the entire aviation fuel value chain—including aviation fuel producers, aircraft manufacturers, air transport companies, research institutions, and industry associations. Concurrently, Chengdu’s Eastern New Area released the “Several Policies Supporting the Development of Sustainable Aviation Fuel in Chengdu’s Eastern New Area,” making it the nation’s first specialized support policy specifically targeted at the SAF industry. Over the next three years, the area plans to invest more than 100 million yuan to support the full-chain development of SAF—from technological R&D and certification trading to aviation applications. To accelerate industrial agglomeration and innovative development, the New Area has also introduced a series of targeted support measures focusing on key areas such as SAF technology innovation, standard-setting and certification, transaction settlement, production and manufacturing, and application promotion. (Source: Sustainable Plastics and Fuels, HuAn Securities Research Institute)

Risk Warning

Increased costs for certification and regulation; technology diffusion; breakthroughs in new technologies; risks associated with the return on R&D investment; heightened risk of intensifying market competition; uncertainty in market demand; geopolitical and cross-border cooperation risks; and the risk of a significant economic downturn. (HuaAn Securities, Wang Qiangfeng, Liu Tianqi)