Airbus, Cathay to co-invest up to $70 million in SAF projects

Airbus and Hong Kong's Cathay Group have agreed to jointly invest up to $70 million to accelerate the development of sustainable aviation fuel production in Asia and globally, the companies said Oct. 21.

The partnership, announced on the sidelines of the International Air Transport Association's World Sustainability Symposium in Hong Kong, will focus on identifying and funding SAF projects with commercial viability, mature technology, and potential for long-term offtake agreements.

Under the agreement, Airbus and Cathay will co-invest in projects aimed at scaling SAF production capacity toward 2030 and beyond, with both sides describing the initiative as part of broader efforts to decarbonize aviation through cross-sector collaboration.

"SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonization goals," Cathay Chief Operations and Service Delivery Officer Alex McGowan said, adding, "This partnership with Airbus underscores our commitment to building a stronger, more scalable SAF industry."

Airbus President Asia-Pacific Anand Stanley said the collaboration "reflects the shared commitment of Airbus and Cathay to make a real difference," adding that affordable, at-scale SAF production requires "an unprecedented cross-sectoral approach."

The partnership also includes joint advocacy for supportive SAF policies across Asia, aimed at strengthening both supply and demand. With Asia's growing aviation market and abundant feedstock potential, the companies said they plan to leverage their experience to help make SAF more accessible and cost-competitive in the region.

Cathay said the partnership complements its recent investment in the oneworld BEV SAF fund and aligns with its goal of using 10% SAF in total fuel consumption by 2030 as part of its 2050 net zero emissions target.

Platts, part of S&P Global Energy, assessed the Asian SAF-jet fuel spread at $1,379.5/mt, up $4.14/mt day over day.