Cathay Group has announced a joint investment of up to US$70 million (HK$546 million) with Airbus, focused on sustainable aviation fuel projects.
Alex McGowan, Cathay's chief operations and service delivery officer, said that the two parties will identify, evaluate, and invest in projects capable of scaling up SAF production. Considerations will include commercial viability, technological maturity, and long-term supply potential.
Grace Cheung, Cathay's general manager sustainability, added that this investment is not targeted at existing facilities but aims to catalyze the establishment of new production capacity. While the capital cannot cover the entire capacity requirement, it can act as a catalyst for project success.
She added that each SAF project is at a different stage of development, and Cathay hopes its investment will help bring them online smoothly while securing a portion of the output for the airline's use. This supports the group's goal for SAF to comprise 10 percent of its total fuel consumption by 2030.
Cheung indicated that the US$70 million investment covers a portfolio of projects rather than a single one, with potential plant locations including Malaysia and other parts of Asia. She said Airbus was chosen as a partner due to the high alignment in their SAF vision and goals.
Regarding the specific arrangements for allocating the fuel output post-production, Cheung noted that commercial details cannot be disclosed at this time.
