HSBC, Cathay and Ecoceres team up for long-term decarbonisation of air travel

HSBC Hong Kong, Cathay Pacific and EcoCeres have teamed up to support the use of sustainable aviation fuel (SAF) in Hong Kong. The collaboration aims to support a key innovation for the long-term decarbonisation of air travel and foster a local SAF ecosystem for Hong Kong. 

As part of the initiative, HSBC Hong Kong is entering into a one-time purchase agreement for around 3,400 metric tonnes 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% waste-based biomass feedstock, which can deliver an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel, certified by International Sustainability and Carbon Certification (ISCC), according to the release.  

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 tonnes, 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 move also aligns with the latest Policy Address which reaffirmed the city’s commitment to SAF development. The collaboration signposts meaningful progress in this direction and encourages the public and private sectors to pursue further SAF initiatives. 

Lam Sai-hung, secretary for transport and logistics of the Hong Kong government said, “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 next year, aiming to significantly reduce carbon emissions in the aviation sector.” 

Clara Chan, CEO of the Hong Kong Investment Corporation (“HKIC”) said, “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-recognised 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.” 

“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 an 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,” she added. 

Luanne Lim, CEO Hong Kong,HSBC, said, “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 decarbonisation technologies.” 

Ronald Lam, CEO of the Cathay Group, said, “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,” he added. 

Matti Lievonen, executive chairman of EcoCeres said, “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 towards a greener future. We are confident that this tri-party partnership will serve as a successful model, inspiring global efforts towards decarbonisation in the aviation sector and promoting the shift to renewable energy solutions.”

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