Co-Investment Hopes to Accelerate and Scale SAF Production Worldwide

Airbus and Cathay Group are pooling up to $70 million for the acceleration and scaling of sustainable aviation fuel (SAF) production in Asia and beyond. The partnership was unveiled during the IATA World Sustainability Symposium in Hong Kong.

SAF is produced from renewable sources like waste oils and agricultural residues, meaning it is viewed as the most practical short- to medium-term solution for the emissions that come with traditional fuels. Despite its potential, SAF supply remains limited, and costs remain significantly higher than fossil-based alternatives. The partnership claims to address this point, leveraging SAF as a means to an end.

“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonisation goals,” said Alex McGowan, Cathay’s Chief Operations and Service Delivery Officer. “This co-investment partnership with Airbus underscores our commitment to building a stronger, more scalable SAF industry.”

Under the agreement, Airbus and Cathay will jointly identify, evaluate, and invest in SAF projects that demonstrate both commercial promise and technological readiness. The companies will center on ventures capable of producing fuel at scale and supporting long-term supply contracts to help airlines reduce emissions in the next decade.

The collaboration also includes policy advocacy to promote incentives for both producers and buyers, particularly across Asia’s ever-growing aviation market. The region’s rich feedstock resources and developing manufacturing infrastructure will be crucial for SAF expansion.

This agreement builds on previous sustainability initiatives by both firms. Airbus joined the Sustainable Aviation Fuel Financing Alliance (SAFFA) in 2024 to help fund new SAF projects, while Cathay has steadily increased its SAF usage and invested in related programs such as the oneworld BEV SAF Fund.

“This agreement reflects the shared commitment of Airbus and Cathay to make a real difference,” added Anand Stanley, President of Asia Pacific at Airbus. “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 catalyse production in the most suitable locations to serve our customers.”

FMI: www.airbus.com, www.cathaypacific.com