The Cathay Group and Airbus have announced a joint investment agreement of up to US$70 million to accelerate the development of Sustainable Aviation Fuel (SAF) production in Asia and globally.
Under the terms of the partnership, the two companies will work 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, technological maturity, and potential for long-term offtake.
Scaling SAF adoption requires deep collaboration across the value chain, from policymakers and investors to SAF producers, airlines 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.
âSAF remains the most important lever for Cathay and the wider aviation industry to drive toward our common decarbonisation goals,â said Alex McGowan, Chief Operations and Service Delivery Officer, Cathay. âThis co-investment partnership with Airbus underscores our commitment to supporting a more scalable SAF industry in the near term. It complements our broader strategy of investing in the technologies and production capacity that can transform the industry in the long run, including our participation in the recently launched oneworld BEV SAF Fund. Meanwhile, we are also expanding SAF usage today through partnerships with like-minded organisations.â
The partnership also includes collaboration to advocate for supportive SAF policies on both the supply and demand side across Asia. With the regionâs strong potential in feedstock supply, production capacity, and its vibrant aviation market, Cathay and Airbus aim to leverage their global experience to help shape policies that make SAF more accessible and affordable.
âThis agreement reflects the shared commitment of Airbus and Cathay to make a real difference,â said Anand Stanley, Airbus President Asia Pacific. âThe 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.â
Cathay has also joined as a launch investor in the oneworld BEV SAF Fund, a joint initiative with other oneworld airlines and Breakthrough Energy Ventures, the climate investment firm founded by Bill Gates. That fund focuses on novel, next-generation SAF technologies with the potential to scale significantly and reduce costs. Complementing this, the Cathay-Airbus partnership will target more mature SAF opportunities to accelerate near- to medium-term availability.
