Cathay, Airbus to co-invest $70m in SAF projects

The Cathay Group and Airbus announced joint investment agreement of up to $70m to  in sustainable aviation fuel (SAF) projects to accelerate in Asia and globally.

“This co-investment partnership with Airbus underscores our commitment to supporting a more scalable SAF industry in the near term,” said Cathay’s Alex McGowan. “Meanwhile, we are also expanding SAF usage today through partnerships with like-minded organisations.”

The agreement was announced in Hong Kong on the sidelines of the IATA World Sustainability Symposium.

Under the partnership, the two companies will work to identify, evaluate and invest in projects that support the scaling of SAF production towards 2030 and beyond.

Projects will be assessed based on their commercial viability, technological maturity, and potential for long-term offtake.

“The production and distribution of affordable SAF at scale requires an unprecedented cross-sectoral approach,” said Airbus’s Anand Stanley.

The partnership also includes collaboration to advocate for supportive SAF policies on both the supply and demand side across Asia. With the region’s strong potential in feedstock supply, production capacity, and its vibrant aviation market, the two companies said they can leverage their global experience to help shape policies.

Last month in September, Cathay also joined as a launch investor in the oneworld BEV SAF Fund, a joint initiative with other oneworld airlines and Breakthrough Energy Ventures. The fund will focus on novel, next-generation SAF technologies with the potential to scale significantly and reduce costs.