HSBC, Cathay Pacific and EcoCeres partner for major SAF initiative in Hong Kong

Photo: Cathay Pacific

Cathay Pacific announced Nov. 19 that it is launching an initiative with HSBC Hong Kong, the biggest bank in Hong Kong, and EcoCeres to support the use of sustainable aviation fuel (SAF) in Hong Kong.

By bringing together Hong Kong’s largest bank, its home airline and a leading Hong Kong-based SAF producer, the collaboration aims to support a key innovation for the long-term decarbonization of air travel and foster a local SAF ecosystem for Hong Kong.

HSBC Hong Kong is entering into a one-time purchase agreement for around 3,400 metric tons of SAF produced by EcoCeres, which will be used in Cathay Pacific flights departing from the Hong Kong International Airport.

EcoCeres’ SAF is derived from 100 percent waste-based biomass feedstock, which can deliver an estimated reduction of up to 90 percent in greenhouse-gas emissions compared to conventional jet fuel, certified by International Sustainability and Carbon Certification System.

This batch of SAF is made from fully traceable feedstock of used cooking oil.

The reduction in lifecycle-carbon emissions is estimated to be 11,800 metric tons, compared with use of the same volume of conventional jet fuel.

It is equivalent to the carbon emissions arising from around 10,000 roundtrip economy-class seats between Hong Kong and London on Cathay Pacific flights.

“The announcement of this tripartite partnership arrives at a crucial time,” said Lam Sai-hung, the secretary for transport and logistics of the Hong Kong government. “The collaborative efforts of Cathay Pacific, HSBC and EcoCeres in advancing sustainability resonate 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.”

The recent Hong Kong government’s policy address reaffirmed the city’s commitment to SAF development.

For Hong Kong to cultivate the growth and application of SAF, as well as maintain its status as a leading international aviation hub, collaboration between government and business stakeholders is essential.

The collaboration announced Nov. 19 signposts meaningful progress in this direction, according to Cathay Pacific, and encourages the public and private sectors to pursue further SAF initiatives.

“This is the largest SAF purchase that HSBC has undertaken to date,” said Luanne Lim, the CEO of HSBC Hong Kong. “The Hong Kong initiative will serve as a pilot program, which could help pave the way for broader implementation. It reflects our support for new-economy solutions and demonstrates how businesses can collaborate to support innovative decarbonization technologies.”

In October 2020, HSBC set an ambition to become a net-zero bank by 2050.

The bank released its first net-zero transition plan in January 2024, outlining its approach and the actions underway to help meet that ambition.

“We are grateful to HSBC for this landmark partnership, showcasing shared sustainability leadership, and to EcoCeres for their market-leading SAF production,” said Ronald Lam, CEO of the Cathay Group. “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.”

Cathay aims to achieve net-zero carbon emissions by 2050 and to use SAF for 10 percent of Cathay Pacific’s total fuel consumption by 2030.

To accelerate the transition to SAF, Cathay launched its corporate SAF program in 2022, enabling members to reduce their indirect emissions associated with air transportation.

HSBC Hong Kong was a launch member of the program, which has a total commitment of over 6,050 metric tons of SAF in 2024.

“We are thrilled to contribute to the groundbreaking collaboration with HSBC and Cathay Pacific in piloting Hong Kong’s first SAF ecosystem,” said Matti Lievonen, EcoCeres’ executive chairman. “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 triparty partnership will serve as a successful model, inspiring global efforts towards decarbonization in the aviation sector and promoting the shift to renewable energy solutions.”