Cathay Pacific & HSBC Partner to Produce SAF in Hong Kong
Cathay Pacific, HSBC Hong Kong and EcoCeres are pioneering a significant initiative to bolster the use of sustainable aviation fuel (SAF) in Hong Kong.
This collaboration is not just a partnership of powerhouses — it is a strategic alliance between Hong Kong's premier bank, the flagship carrier and a top SAF producer based in the city.
The core mission? To propel the decarbonisation of air travel while cultivating a local ecosystem favourable to SAF.
EcoCeres’ SAF
As part of this groundbreaking effort, HSBC Hong Kong is entering into a notable one-time purchase agreement.
The bank will acquire 3,400 metric tonnes of SAF from EcoCeres, intended for use in Cathay Pacific's outbound flights from Hong Kong International Airport.
This purchase marks a proactive step by HSBC towards supporting sustainable energy sources.
EcoCeres produces this SAF from 100% waste-derived biomass feedstock.
A significant advantage of using this type of fuel is its potential to slash greenhouse gas emissions — by up to 90% as compared to traditional jet fuel.
This substantial reduction is equivalent to the emissions generated from about 10,000 roundtrip economy seats from Hong Kong to London — a testament to the impact of adopting SAF.
Matti Lievonen, Executive Chairman of EcoCeres, says: “We are thrilled to contribute to the ground breaking collaboration with HSBC and Cathay Pacific in piloting Hong Kong's first SAF ecosystem.
"This initiative will support HSBC in improving the traceability of its travel supply chain and also exemplifies an initiative to support progress towards a greener future.
“We are confident that this tri-party partnership will serve as a successful model, inspiring global efforts towards decarbonisation in the aviation sector and promoting the shift to renewable energy solutions.”
Partnerships pioneering climate goals
In a significant policy move in October 2020, HSBC set its sights on becoming a net zero bank by 2050.
Just earlier this year, HSBC publicised its first Net Zero Transition Plan, detailing steps underway to achieve this vision.
The bank has a firm commitment to pioneering new economic solutions while demonstrating how corporate collaboration can effectively support innovative decarbonisation technologies.
Luanne Lim, CEO Hong Kong at HSBC, says: “This is the largest SAF purchase that HSBC has undertaken to date. The Hong Kong initiative will serve as a pilot programme, which could help pave the way for broader implementation.
“It reflects our support for new economic solutions and demonstrates how businesses can collaborate to support innovative decarbonisation technologies.”
Meanwhile, Cathay Pacific is also setting ambitious climate goals.
The airline aims to reach net zero carbon emissions by 2050 and plans for SAF to constitute 10% of its total fuel consumption by 2030.
Ronald Lam, CEO of Cathay Group, says: “We are grateful to HSBC for this landmark partnership, showcasing shared sustainability leadership, and to EcoCeres for their market leading SAF production. We are very encouraged by the participation by more and more corporates in SAF related initiatives.
“At the same time, we look forward to the development of a comprehensive SAF policy in Hong Kong as soon as possible, which is essential to raise and future-proof our home city’s competitiveness as an international aviation hub and foster its transition to low-carbon energy.”
A bold step for aviation in Hong Kong
EcoCeres stands out globally because it is capable of converting waste into diverse types of sustainable transportation fuels.
Currently, it accounts for about 20% of the global SAF market share, a testament to its innovative approaches and significant impact.
Clara Chan, CEO of the Hong Kong Investment Corporation, says: “EcoCeres is a classic example of a home-grown company, which has developed into a well-recognised unicorn on the global stage. We are pleased to see its commitment and concrete actions to support Hong Kong, as well as its continued development as a global trailblazer in SAF development and usage.
“Today’s partnership demonstrates the curation of Tri-Synergy – synergy between Hong Kong’s roles as international green technology and finance centre, as well as international aviation centre, synergy among stakeholders from different industries comprising HSBC, Cathay Pacific and EcoCeres, and synergy among Hong Kong and rest of the world.
"We look forward to the continued growth of this partnership and SAF’s development in Hong Kong.”Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong SAR Government, adds: “The announcement of this tripartite partnership arrives at a crucial time. The collaborative efforts of Cathay Pacific, HSBC and EcoCeres in advancing sustainability resonates with the Government’s initiatives and vision.
“As mentioned in the Chief Executive’s policy address last month, our goal is to establish a usage target for SAF within next year, aiming to significantly reduce carbon emissions in the aviation sector.”
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