HSBC Hong Kong, Cathay Pacific, and the biofuels platform EcoCeres have launched a pioneering initiative aimed at significantly decarbonizing air travel in Hong Kong. This partnership will help to accelerate the use of Sustainable Aviation Fuel (SAF), a critical component in reducing the aviation industry’s carbon footprint and supporting global climate goals. By focusing on the adoption of SAF, this collaboration represents an essential step forward in the aviation sector’s transition to more sustainable energy solutions.
The initiative involves HSBC purchasing 3,400 tonnes of SAF produced by EcoCeres. This SAF will be used by Cathay Pacific on flights departing from Hong Kong International Airport, marking HSBC’s largest SAF purchase to date. The agreement is aligned with Cathay Pacific’s long-term sustainability strategy, which includes a goal to scale up SAF use to 10% of its total fuel consumption by 2030. This milestone marks an important stride in the airline’s commitment to reducing its environmental impact and enhancing its role in global decarbonization efforts.
Cathay Pacific’s Chief Executive Officer, Ronald Lam, expressed his gratitude for the partnership, calling it a demonstration of shared sustainability leadership. He praised HSBC for its commitment to driving positive environmental change and thanked EcoCeres for its innovative approach to SAF production. Lam also highlighted the increasing participation of corporate entities in SAF-related initiatives, underscoring the growing momentum toward sustainable aviation practices. “We are very encouraged by the participation of more and more corporates in SAF-related initiatives,” Lam said.
Luanne Lim, CEO of HSBC Hong Kong, described the new initiative as a pilot program that could serve as a blueprint for broader SAF adoption across the aviation industry. Lim explained that the collaboration not only supports the use of innovative decarbonization technologies but also aligns with HSBC’s commitment to developing and promoting new economy solutions. “This initiative reflects our support for new economy solutions and demonstrates how businesses can collaborate to support innovative decarbonization technologies,” Lim noted.
The SAF produced by EcoCeres is made from 100% waste-based biomass feedstock, a key factor in its environmental benefits. Unlike conventional jet fuel, which is derived from fossil fuels, EcoCeres’ SAF is produced from used cooking oil, which is fully traceable and collected from certified sources. The use of such waste-based feedstock allows SAF to achieve up to 90% reduction in carbon emissions compared to traditional aviation fuels. This partnership will enable Cathay Pacific to significantly cut down on its carbon footprint for flights departing from Hong Kong International Airport.
The estimated lifecycle carbon emissions savings for this initiative are impressive, amounting to around 11,800 tonnes of CO2. This reduction is equivalent to the carbon emissions generated by approximately 10,000 roundtrip Economy class seats between Hong Kong and London. This substantial decrease in emissions highlights the potential of SAF to make a real impact on reducing the environmental impact of air travel, especially as the aviation industry seeks to meet its decarbonization targets.
EcoCeres’ role in this initiative is crucial, as the company’s commitment to producing SAF from waste-based feedstocks ensures that it can offer a more sustainable alternative to traditional jet fuels. The company’s Executive Chairman, Matti Lievonen, expressed his excitement about the collaboration, calling it a significant milestone in the development of Hong Kong’s SAF ecosystem. He noted that the partnership would not only support HSBC in improving the traceability of its travel supply chain but also serve as a model for other businesses looking to reduce their carbon footprint.
“We are thrilled to contribute to the groundbreaking collaboration with HSBC and Cathay Pacific in piloting Hong Kong’s first SAF ecosystem,” Lievonen said. “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.”
Lievonen also emphasized the broader implications of this collaboration, noting that the success of this partnership could inspire similar efforts around the world. “We are confident that this tri-party partnership will serve as a successful model, inspiring global efforts towards decarbonization in the aviation sector and promoting the shift to renewable energy solutions,” he added.
This collaboration between HSBC, Cathay Pacific, and EcoCeres marks a significant step in the ongoing efforts to decarbonize the aviation industry. With air travel contributing to a substantial portion of global carbon emissions, finding and implementing sustainable alternatives like SAF is crucial to achieving long-term climate goals. This partnership showcases the potential of cross-industry collaboration to drive change and accelerate the transition to a more sustainable and low-carbon future for aviation.
As the world’s second-largest airline hub, Hong Kong’s role in advancing sustainable aviation technologies is critical. With the support of companies like HSBC and EcoCeres, Hong Kong is positioning itself as a leader in the adoption of SAF and other green technologies in aviation. The success of this initiative could serve as a model for other major airports and airlines to follow as they work toward reducing their environmental impact and achieving their own sustainability targets.
This innovative SAF partnership exemplifies how business, government, and technology providers can work together to tackle one of the most challenging environmental issues facing the world today. By scaling up the use of SAF, the aviation industry can play a pivotal role in reducing global emissions and contributing to a cleaner, more sustainable future.