Aerospace giant Airbus and airline company Cathay Group announced the launch of a new co-investment partnership aimed at scaling sustainable aviation fuel (SAF), and including a joint investment of up to $70 million to accelerate the development of SAF production in Asia and globally.
Fuel accounts for the vast majority of the aviation sector’s emissions. Generally produced from sustainable resources, like waste oils and agricultural residues, SAF is seen as one of the key tools to help decarbonize the aviation industry, with lifecycle GHG emissions substantially lower than conventional fuels. Efforts to meaningfully increase the use of SAF by airlines face significant challenges, however, including the low supply currently available on the market, and prices well above those of conventional fossil-based fuels.
Alex McGowan, Chief Operations & Service Delivery Officer at Cathay, said:
“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonisation goals. This co-investment partnership with Airbus underscores our commitment to building a stronger, more scalable SAF industry.”
Through the new agreement, the two companies will jointly identify and fund SAF projects that demonstrate commercial promise, technological readiness and potential for long-term supply arrangements in a bid to increase production capacity and ultimately help the aviation sector reduce its carbon footprint in the coming decade.
Anand Stanley, President of Asia Pacific at Airbus, said:
“This agreement reflects the shared commitment of Airbus and Cathay to make a real difference. The production and distribution of affordable SAF at scale requires an unprecedented cross-sectoral approach. Our partnership with Cathay is a concrete example of how we catalyse production in the most suitable locations to serve our customers.”
The initiative emphasizes cross-industry collaboration, involving policymakers, investors, producers and customers to build a stronger SAF ecosystem.
Airbus and Cathay also plan to collaborate on policy advocacy to encourage both supply- and demand-side incentives for SAF development across Asia. With the region’s strong feedstock resources, growing manufacturing capabilities and dynamic air travel market, the partners see significant potential to make SAF more accessible and affordable.
The agreement was announced during the IATA World Sustainability Symposium in Hong Kong.
Last year, Airbus announced it had joined the Sustainable Aviation Fuel Financing Alliance (SAFFA) as an anchor investor in a bid to support the production of SAF.
