Sustainable Aviation
Cathay and Airbus Partner to Scale Sustainable Aviation Fuel by 2030
Cathay Pacific and Airbus co-invest to accelerate Sustainable Aviation Fuel production in Asia, focusing on mature projects for near-term aviation decarbonization.
Aviation’s Green Gambit: Cathay and Airbus Unite for Sustainable Fuel
The global aviation industry stands at a critical juncture, facing the immense challenge of decarbonization. As air travel continues to be a vital connector for the global economy and society, the pressure to mitigate its environmental impact has never been greater. For years, the sector has explored various avenues to reduce its carbon footprint, but one solution has consistently emerged as the most viable and immediate pathway: Sustainable Aviation Fuel (SAF). SAF is a biofuel with properties nearly identical to conventional jet fuel but produced from renewable sources, capable of significantly reducing lifecycle greenhouse gas emissions.
Despite its promise, the widespread adoption of SAF has been hampered by significant hurdles, primarily limited production capacity and costs that far exceed those of traditional kerosene. The current global supply of SAF meets only a fraction of the industry’s demand, creating a classic chicken-and-egg scenario: airlines are hesitant to commit to a fuel that is scarce and expensive, while producers are reluctant to invest in scaling up production without firm demand. To break this impasse, collaboration across the entire aviation value chain is not just beneficial; it’s essential.
In a landmark move signaling a unified push to overcome these challenges, the Cathay Group and Airbus have announced a co-investment partnership. This collaboration between one of Asia’s leading airline groups and a premier aircraft manufacturer aims to directly tackle the SAF supply bottleneck. By pooling resources and expertise, they intend to accelerate the development and production of SAF, sending a powerful message that the industry is ready to invest in its own sustainable future.
The Mechanics of the Alliance
Announced at the IATA World Sustainability Symposium in Hong Kong, the partnership between Cathay and Airbus represents a concrete, action-oriented strategy. The core of the agreement is a joint investment to support the scaling of SAF production, with a particular focus on the critical period leading up to 2030 and beyond. This initiative is not just a financial commitment but a strategic one, designed to identify and nurture projects that are technologically mature and commercially viable.
A Focus on Mature, Near-Term Solutions
A key aspect of this collaboration is its pragmatic approach. While many sustainability efforts focus on nascent, next-generation technologies, the Cathay-Airbus partnership targets more mature SAF opportunities. The goal is to increase the availability of sustainable fuel in the near to medium term, providing a more immediate impact on aviation emissions. The partners will jointly evaluate and invest in projects that have the potential for long-term offtake agreements, thereby creating the market stability needed for producers to scale their operations confidently.
This strategy complements Cathay’s existing investments in the future of green aviation. The airline is also a participant in the oneworld BEV SAF Fund, a venture launched with Breakthrough Energy Ventures (BEV), which concentrates on advancing next-generation SAF technologies. By investing in both mature and emerging solutions, Cathay is building a diversified portfolio of sustainability initiatives. This two-pronged approach ensures the airline is supporting the immediate need for more SAF today while also fostering the innovations that will power the industry tomorrow.
The selection criteria for these investments will be rigorous. Projects will be assessed based on their technological readiness, commercial viability, and their ability to contribute meaningfully to the SAF supply chain. According to Julien Manhes, Head of SAF and Carbon Dioxide Removal Development at Airbus, the partnership will likely focus on projects expected to commence SAF production around the 2030 timeframe, aligning with industry-wide decarbonization milestones.
“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our common decarbonisation goals. This co-investment partnership with Airbus underscores our commitment to supporting a more scalable SAF industry in the near term.” – Alex McGowan, Cathay Chief Operations and Service Delivery Officer
Cultivating a SAF Ecosystem in Asia
The partnership places a significant emphasis on Asia, a region recognized for its vast potential in feedstock supply and production capacity. However, this potential remains largely untapped due to a lack of supportive regulatory frameworks. A crucial component of the Cathay-Airbus collaboration is dedicated to policy advocacy. The two companies will work together to champion government policies that support the SAF industry on both the supply and demand sides across the region.
By advocating for incentives, mandates, and a stable regulatory environment, the partnership aims to de-risk investment in SAF production facilities in Asia. Creating a favorable ecosystem is critical to unlocking the region’s potential and establishing a robust, local SAF market. This not only helps secure a future supply for airlines like Cathay but also contributes to economic development and energy security in the region.
This regional focus is a strategic move. As a major aviation hub, Asia’s transition to sustainable fuels is paramount for the global industry’s climate goals. The collaboration between Cathay, a Hong Kong-based carrier, and Airbus, a global manufacturer with a strong presence in the region, leverages their combined influence to drive meaningful policy change and infrastructure development where it is most needed.
A Model for Cross-Sectoral Action
The alliance between an airline and an aircraft manufacturer is a powerful example of the cross-sectoral collaboration required to tackle the climate crisis. It demonstrates a shared sense of responsibility and a recognition that no single entity can solve the SAF challenge alone. By joining forces, Cathay and Airbus are not only sharing the financial risk but are also combining their unique perspectives and expertise to create a more effective strategy.
This model allows for a more holistic approach. Airbus, as a manufacturer, has deep insights into aircraft technology, fuel specifications, and the long-term trajectory of the industry. Cathay, as an airline, understands the operational realities, logistical challenges, and market dynamics of fuel procurement. Together, they can make more informed investment decisions and more effectively advocate for the infrastructure and policies needed to support a thriving SAF market.
The long-standing relationship between the two companies provides a solid foundation for this new chapter in their collaboration. Cathay has long been a major operator of Airbus aircraft, with more on order. This partnership deepens their connection, moving beyond a simple customer-supplier dynamic to one of strategic partners united by a common goal of sustainability.
“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.” – Anand Stanley, Airbus President Asia-Pacific
Concluding Section
The Cathay and Airbus co-investment partnership is more than just a press announcement; it is a tangible step forward in the aviation industry’s journey toward decarbonization. By focusing on scaling up mature SAF technologies and advocating for a supportive policy environment in Asia, this collaboration addresses the most pressing bottlenecks hindering the widespread adoption of sustainable fuels. It is a pragmatic, results-oriented initiative designed to make a real difference in the near term.
Ultimately, this partnership serves as a powerful blueprint for the future. It highlights that the path to a sustainable aviation industry is paved with collaboration, shared investment, and a collective commitment to action. As we look toward 2030 and beyond, such cross-sectoral alliances will be crucial in transforming aspirations into reality, ensuring that air travel can continue to connect the world in a more sustainable and responsible manner.
FAQ
Question: What is Sustainable Aviation Fuel (SAF)?
Answer: Sustainable Aviation Fuel (SAF) is a biofuel used to power aircraft that has similar properties to conventional jet fuel but is produced from renewable sources like used cooking oil, municipal waste, or agricultural residues. It can significantly reduce life cycle greenhouse gas emissions compared to fossil-based jet fuel.
Question: What is the primary goal of the Cathay and Airbus partnership?
Answer: The main objective is to accelerate the development and scaling of SAF production. The partnership will jointly invest in projects that are commercially viable and technologically mature to increase the availability of SAF in the near to medium term, particularly focusing on the Asian market.
Question: Why is this partnership focused on Asia?
Answer: Asia has significant, largely untapped potential for SAF feedstock and production. A key part of the partnership is to advocate for supportive government policies in the region to create a favorable environment for SAF production and build a robust local market.
Question: How does this investment differ from Cathay’s other SAF initiatives?
Answer:
This partnership with Airbus focuses on investing in more mature SAF opportunities to increase supply in the near term (around 2030). This complements Cathay’s other investments, such as its participation in the oneworld BEV SAF Fund, which is geared toward advancing next-generation, long-term SAF technologies.
Sources
Photo Credit: Cathay Pacific
Sustainable Aviation
Singapore Airlines Signs SAF Offtake Deal with Aether Fuels
Singapore Airlines commits to buying SAF from Aether Fuels’ Project Beacon facility in Singapore, due online in 2028.
Singapore Airlines (SQ) has finalized a firm purchase agreement to offtake next-generation Sustainable Aviation Fuel (SAF) from Aether Fuels, becoming the first carrier to commit to the upcoming Project Beacon production facility in Singapore.
Announced in a joint press release on 28 October 2026, the agreement transitions a previous memorandum of understanding into a binding contract. The deal secures future fuel volumes to support the airline’s target of replacing 5 percent of its total fuel consumption with SAF by 2030.
Transitioning from framework to firm commitment
The 28 October 2026 announcement builds on a Memorandum of Understanding (MoU) signed by the two companies on 4 February 2025. That initial framework outlined the airline’s intention to procure neat SAF for a five-year period, with an option to extend for an additional five years, once Aether commenced commercial production.
While the companies confirmed the transition to a firm offtake agreement, the exact fuel volumes and financial terms were not disclosed in the release.
Project Beacon and the Aurora technology
Aether Fuels, a climate technology firm incubated and funded in 2022 by Temasek-backed deep tech venture firm Xora, officially launched Project Beacon on 11 November 2025. The project is a partnership with Aster, a joint venture between Indonesian chemical and infrastructure company Chandra Asri and commodities trader Glencore.
The commercial-scale SAF facility will be located at Aster’s refining hub on Pulau Bukom in Asia-Pacific in Singapore. Aster acquired this site from Shell to develop a dedicated sustainable fuels footprint. Construction of the facility is scheduled to commence in 2026.
Once operational in 2028, Project Beacon is projected to produce 50 barrels per day, equating to approximately 2,000 tons of SAF annually. The plant will utilize Aether’s proprietary Aurora technology to produce Fischer-Tropsch Synthesized Paraffinic Kerosene (FT-SPK). According to Aether Fuels, this pathway is expected to deliver a minimum 70 percent reduction in greenhouse gas emissions compared to conventional jet fuel.
De-risking commercial scale-up
The firm offtake agreement follows a critical technical milestone for Aether Fuels. On 29 September 2026, the company announced the successful operation of a fully integrated demonstration line at RTI International in North America.
The 2.5 barrel-per-day system combined Aether’s Aurora Tri-Converter and Upgrader units with an existing Fischer-Tropsch reactor. The demonstration successfully converted renewable natural gas derived from landfill gas and captured industrial carbon dioxide into synthetic aviation fuel meeting ASTM D7566 specifications. This successful run provided the engineering data required to de-risk the design and scale-up of the Project Beacon facility ahead of its construction phase.
Singapore’s SAF ecosystem and airline targets
The aviation industry is increasingly reliant on SAF to meet decarbonization targets, but feedstock availability remains a primary bottleneck. Aether’s FT-SPK pathway addresses this by utilizing industrial waste gases and biomethane, bypassing the constrained agricultural and lipid-based feedstocks, such as used cooking oil, that dominate current SAF production.
The agreement aligns with broader regional regulatory shifts. The Civil Aviation Authority of Singapore (CAAS) has mandated a SAF levy for flights departing Singapore starting in 2026 to fund centralized SAF procurement. Singapore Airlines, which operates a fleet with an average age of under eight years, has committed to achieving net-zero carbon emissions by 2050.
AirPro News analysis
We view this firm offtake agreement as a clear indicator of the tightening future market for non-lipid SAF. The aviation sector’s reliance on Hydroprocessed Esters and Fatty Acids (HEFA) SAF is running into hard limits regarding used cooking oil and tallow availability. By committing to Aether’s FT-SPK product before the Project Beacon facility has even broken ground, Singapore Airlines is moving aggressively to lock in alternative feedstock pathways.
This early commitment is necessary for airlines aiming to meet 2030 mandates. The lead times for financing, constructing, and scaling novel waste-to-fuel facilities span several years, meaning airlines cannot wait for commercial production to begin before securing their supply lines.
Photo Credit: Aether Fuels
Sustainable Aviation
SABA Members Back Infinium eSAF Facility With Long-Term Deals
Google, McKinsey, and others sign binding SAFc agreements to support Infinium Energy’s 100,000 MT/year Texas eSAF project.
Corporate members of the Sustainable Aviation Buyers Alliance (SABA) have signed binding, multi-year agreements to purchase sustainable aviation fuel certificates (SAFc) from Infinium Energy’s planned electro-sustainable aviation fuel (eSAF) facility in Texas. The commitments, announced on September 22, 2026, are designed to provide the financial demand signals necessary for Infinium to reach a final investment decision on the project.
In a press release issued by SABA, the organization confirmed that American Airlines (AA) will serve as the physical offtaker for the fuel, managing logistics and delivery. The corporate buyers purchasing the associated certificates include AVEVA, Bain & Company, Google, and McKinsey & Company. The agreement marks the first time SABA’s procurement model has been utilized to directly drive new production capacity for scalable sustainable aviation fuel.
Project Atlas production and environmental targets
Infinium Energy was selected through a SABA procurement process earlier in 2026 to provide ultra-low carbon eSAF. The fuel is produced using waste carbon dioxide and renewable energy, distinguishing it from traditional biofuel pathways that rely on agricultural or waste feedstocks.
The planned Texas facility, designated Project Atlas, is expected to have an annual sustainable aviation fuel (SAF) production capacity of 100,000 metric tons. According to the alliance, the contracted volumes will support an expected greenhouse gas abatement of 212,000 metric tons of carbon dioxide equivalent (mtCO2e). SABA equates this emissions reduction to approximately 3,500 commercial flights between John F. Kennedy International Airport (JFK) and Los Angeles International Airport (LAX).
“We’re proud to partner with SABA members including AVEVA, Bain & Company, Google, McKinsey, and others, as well as American Airlines to bring Infinium Energy’s next world scale eSAF facility to life. Their commitment reflects a shared conviction that decarbonizing aviation requires real investment in next-generation supply,” said Robert Schuetzle, CEO of Infinium Energy.
Aggregating demand through book-and-claim
The transaction utilizes a book-and-claim model. Corporate buyers purchase the SAFc to claim the environmental benefits against their business travel emissions, while the physical fuel is delivered to partner airlines. This mechanism allows corporations to fund SAF production even when the physical fuel cannot be delivered directly to the airports their employees use.
American Airlines will manage the physical integration of the eSAF into the commercial aviation fuel supply chain. Jill Blickstein, Chief Sustainability Officer at American Airlines, stated that the corporate commitments broaden participation in the SAF market and demonstrate how customers can collaborate with airlines and fuel producers to advance decarbonization.
SABA, a joint initiative of the Environmental Defense Fund (EDF), the Center for Green Market Activation (GMA), and RMI, has aggregated $500 million in SAFc demand from 35 companies to date. Aviation currently accounts for approximately 2 to 3 percent of global greenhouse gas emissions.
“Novel technologies are critical to meeting future demand for sustainable aviation fuel, but they will not be operational in time without investments made today. This procurement demonstrates how aggregated, long-term demand can help take promising eSAF projects from idea to reality,” said Jon Creyts, CEO of RMI.
AirPro News analysis
We view this agreement as a critical structural step for the eSAF market. Power-to-Liquid (PtL) fuels like those planned for Project Atlas face a steep commercialization barrier. They are highly capital-intensive to build and currently produce fuel at a significant cost premium compared to both conventional Jet A and HEFA-based SAF derived from waste fats and oils.
Airlines operate on thin margins and generally cannot absorb the full green premium of eSAF alone. By unbundling the environmental attributes from the physical fuel, the SABA model allows highly capitalized corporate entities like Google and McKinsey & Company to absorb that premium. More importantly, signing binding, multi-year offtake agreements provides the revenue certainty that infrastructure lenders require before financing first-of-a-kind industrial facilities. If Project Atlas reaches a positive final investment decision based on these contracts, it will validate the book-and-claim model as a viable financing mechanism for next-generation aerospace infrastructure.
Sources: Sustainable Aviation Buyers Alliance via PR Newswire
Photo Credit: Sustainable Aviation Buyers Alliance
Sustainable Aviation
EU Exceeds 2025 SAF Mandate at 2.79 Percent Blend Rate
EASA reports EU airports hit 2.79% SAF blend in 2025, surpassing the 2% ReFuelEU mandate with 1.1M tonnes supplied.
The European Union surpassed its initial Sustainable Aviation Fuel (SAF) mandate in 2025, with SAF accounting for 2.79 percent of all jet fuel supplied to EU airports during the first mandatory reporting year.
According to the 2026 ReFuelEU Aviation Annual Technical Report published by the European Union Aviation Safety Agency (EASA) on September 17, 2026, fuel suppliers delivered 1.1 million tonnes of SAF against a total aviation fuel supply of 39.3 million tonnes. The 2.79 percent blend rate comfortably exceeded the 2 percent minimum required by the ReFuelEU regulation for 2025. This uptake resulted in an estimated reduction of 3.77 million tonnes of CO2 equivalent greenhouse gas emissions.
“We are pleased to confirm that the SAF mandate under ReFuelEU Aviation was not only met but exceeded,” EASA Executive Director Florian Guillermet stated in the agency’s press release.
Compliance and distribution across European hubs
The EASA report indicates high compliance rates across the sector. Ninety-three percent of aircraft operators and 90 percent of fuel suppliers fulfilled their reporting obligations in 2025. EASA noted that noncompliance among aircraft operators was primarily limited to small business jet operators, nonscheduled carriers, and third-country operators that failed to respond to competent authorities.
SAF distribution reached 121 Airports across all 27 Member States, representing 79 percent of all Union airports. Uptake was heavily concentrated at major European hubs. Amsterdam Airport Schiphol (AMS) accounted for 29 percent of the tracked SAF supply, followed by Frankfurt Airport (FRA) at 8 percent and Paris Charles de Gaulle Airport (CDG) at 7 percent.
Supply chain dynamics and feedstock dependencies
While the headline blending figures demonstrate regulatory success, the technical report reveals a structural reliance on imported raw materials. Although 86 percent of the SAF supplied at EU airports was refined domestically within the European Union, 85 percent of the underlying feedstocks originated from outside the bloc.
The primary feedstock utilized was Used Cooking Oil (UCO) processed via the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. Of the imported feedstocks, 61 percent originated from China, with additional volumes sourced from Malaysia and Indonesia. On the refining side, Neste’s Rotterdam facility alone produced 33 percent of all European SAF in 2025.
AirPro News analysis
The successful implementation of the 2 percent mandate in 2025 proves that the logistical framework for SAF distribution at major European hubs is functional. However, the heavy reliance on Asian Used Cooking Oil presents a long-term vulnerability for European aviation. As the ReFuelEU mandate scales to 6 percent in 2030, the Regulations will also introduce sub-mandates for synthetic aviation fuels (e-fuels). With approximately 50 synthetic fuel projects awaiting final investment decisions and no large-scale e-fuel facilities currently operational in Europe, we anticipate significant capital mobilization will be required over the next 36 months to prevent future supply bottlenecks and reduce dependency on imported biomass.
Photo Credit: European Union Aviation Safety Agency
-
Business Aviation4 days agoDTA Aircraft JP1 eVTOL Targets April 2027 US Flight Testing
-
Regulations & Safety3 days agoFAA Launches MedGuide Medication Database for Aviators
-
Business Aviation5 days agoCivil Air Patrol Orders 21 Cessna Aircraft From Textron Aviation
-
Space & Satellites4 days agoBAE Systems Acquires Colorado Facility for Space Hardware
-
Business Aviation4 days agoUniversal Aviation Rebrands as Affinity Aviation at NBAA 2026