Airbus and Cathay Group have announced a new co-investment partnership to enhance sustainable aviation fuel (SAF) production, with a joint investment of up to $70 million. This initiative aims to accelerate SAF development in Asia and beyond. SAF, typically derived from sustainable resources like waste oils and agricultural residues, is considered crucial for reducing the aviation sector’s carbon footprint, as it significantly lowers lifecycle greenhouse gas emissions compared to conventional fuels. However, the adoption of SAF faces hurdles such as limited supply and higher costs relative to traditional fossil fuels.
Cathay’s Chief Operations & Service Delivery Officer, Alex McGowan, stated, “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.”
Under the agreement, Airbus and Cathay will collaborate to identify and fund SAF projects that show commercial viability, technological readiness, and potential for long-term supply arrangements. This strategy aims to increase production capacity and help the aviation sector lower its carbon emissions in the next decade. Anand Stanley, President of Asia Pacific at Airbus, commented, “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 stresses the importance of cross-industry collaboration, involving policymakers, investors, producers, and customers to strengthen the SAF ecosystem. Airbus and Cathay also plan to engage in policy advocacy to foster both supply- and demand-side incentives for SAF development across Asia. Given the region’s robust feedstock resources, expanding manufacturing capabilities, and dynamic air travel market, the partners see significant potential to make SAF more accessible and cost-effective.
The agreement was announced at the IATA World Sustainability Symposium in Hong Kong. Last year, Airbus joined the Sustainable Aviation Fuel Financing Alliance (SAFFA) as an anchor investor to support SAF production.
