Airbus and the Cathay Group have agreed to jointly invest up to $70m to support the development of sustainable aviation fuel (SAF) in Asia and internationally.
The companies made the announcement in Hong Kong during the IATA World Sustainability Symposium.
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The partnership will involve the identification, assessment, and funding of SAF projects, with decisions based on commercial feasibility, technology status, and the potential for long-term supply agreements.
The initiative targets an increase in SAF production capacity through to 2030 and beyond.
The agreement outlines cooperation between Airbus and Cathay to encourage the formation of policy measures supporting both SAF production and demand within the Asian market.
Cathay chief operations and service delivery officer Alex McGowan said: “SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonisation goals.
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By GlobalData“This co-investment partnership with Airbus underscores our commitment to building a stronger, more scalable SAF industry. It complements our broader strategy of investing in the technologies and production capacity needed for the future, including our recent investment in the oneworld BEV SAF Fund.”
Both organisations indicated that the development of SAF at scale will require coordination among various industry stakeholders, including government, investors, producers, and customers.
The companies intend to leverage their operational presence and experience to support accessibility and cost-effectiveness of SAF within the region.
Airbus Asia Pacific president Anand Stanley said: “This agreement reflects the shared commitment of Airbus and Cathay to make a real difference.
“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.”
Airbus and Cathay have maintained a partnership since 1989, when the latter made its first Airbus aircraft order.
The Cathay Group currently operates 86 Airbus aircraft and holds orders for more than 70 additional aircraft.
In June this year, Airbus and MTU Aero Engines signed a memorandum of understanding (MoU) to advance hydrogen fuel cell propulsion technology for aviation.
The MoU was formalised at the Paris Air Show by Bruno Fichefeux, Airbus’s head of future programmes, and Dr. Stefan Weber, MTU’s senior vice president of engineering and technology.
