Airbus, Cathay form investment partnership for scaling SAF adoption

Photo: Cathay Group

Airbus announced Oct. 21 that it is jointly investing up to $70 million with the Cathay Group to accelerate the development of sustainable aviation fuel (SAF) production in Asia and globally. 

The agreement was announced in Hong Kong on the sidelines of the International Air Transport Association World Sustainability Symposium at a ceremony hosted by Alex McGowan, Cathay’s chief operations and service delivery officer, and Anand Stanley, the president of Airbus Asia-Pacific.

Under the terms of the partnership, the two companies will collaborate 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, technology maturity and potential for long-term offtake. 

Scaling SAF requires deep collaboration across the value chain, including from policymakers and investors to SAF producers and customers.

This co-investment agreement reflects the spirit of partnership with Airbus and Cathay teaming up to accelerate production capability for more meaningful impact, according to Airbus.

“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonization goals,” McGowan said. “This co-investment partnership with Airbus underscores our commitment to building a stronger, more scalable SAF industry. It complements our broader strategy of investing in the technologies and production capacity needed for the future, including our recent investment in the oneworld BEV SAF Fund. Meanwhile we are expanding SAF usage today through partnerships with like-minded organizations.”

Stanley said, “This agreement reflects the shared commitment of Airbus and Cathay to make a real difference. The production and distribution of affordable SAF at scale requires an unprecedented cross-sectoral approach. Our partnership with Cathay is a concrete example of how we catalyze production in the most suitable locations to serve our customers.”

The joint commitment 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, Airbus and Cathay aim to leverage their global experience to help shape policies that make SAF more accessible and affordable in this part of the world.

Airbus noted that it and Cathay have a long-standing partnership dating back to 1989, when the airline signed its first order for Airbus aircraft.

Today, the Cathay Group operates 86 Airbus aircraft with over 70  more on order for future delivery.