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

By bringing together Hong Kong’s largest bank, it’s 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 sustainable aviation Fuel (SAF) ecosystem for Hong Kong.

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

Waste-based SAF

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

This batch of SAF is made from fully traceable feedstock of used cooking oil (UCO). The reduction in lifecycle carbon emissions is estimated to be 11,800 tonnes, compared with using the same volume of conventional jet fuel.

The recent Hong Kong SAR Government’s Policy Address reaffirmed the city’s commitment to SAF development.

The announcement of this tripartite partnership arrives at a crucial time. 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 the next year, aiming to significantly reduce carbon emissions in the aviation sector, commented Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong SAR Government.

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.

As Patient Capital, the HKIC has been pressing ahead with our investment in and strategic partnership with enterprises with great vision, teams, and growth potential, which fit our dual mandate to support the future development of Hong Kong. EcoCeres is a classic example of a home-grown company, which has developed into a well-recognized unicorn on the global stage. We are pleased to see its commitment and concrete actions to support Hong Kong, as well as its continued development as a global trailblazer in SAF development and usage, said Clara Chan, CEO of the Hong Kong Investment Corporation Ltd (HKIC).

The collaboration signposts meaningful progress in this direction and encourages the public and private sectors to pursue further SAF initiatives.

Today’s partnership demonstrates the curation of “Tri-Synergy” – synergy between Hong Kong’s roles as international green technology and finance centre, as well as international aviation centre, synergy among stakeholders from different industries comprising HSBC, Cathay Pacific and EcoCeres, and synergy among Hong Kong and rest of the world. We look forward to the continued growth of this partnership and SAF’s development in Hong Kong, Clara Chan said.

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.

This is the largest SAF purchase that HSBC has undertaken to date. 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, said Luanne Lim, CEO of HSBC Hong Kong.

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.

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

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

HSBC Hong Kong was a launch member of the Cathay Corporate SAF Programme. The program has a total commitment of over 6,050 tonnes of SAF in 2024.

This is the largest SAF purchase that HSBC has undertaken to date. The Hong Kong initiative will serve as a pilot programme, 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, said Luanne Lim, CEO at HSBC Hong Kong.

EcoCeres is one of the few companies in the world that can convert waste into various types of sustainable transportation fuels.

According to the global SAF production volume published by the International Air Transport Association (IATA), EcoCeres accounted for around 20 percent of the SAF market share globally in 2022 and 2023.

We are thrilled to contribute to the groundbreaking collaboration with HSBC and Cathay Pacific in piloting Hong Kong’s first SAF ecosystem. This initiative will support HSBC in improving the traceability of its travel supply chain and also exemplifies an initiative to support progress toward a greener future. 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, said Matti Lievonen, Executive Chairman of EcoCeres.