HSBC Hong Kong, Cathay Pacific and EcoSeries are launching an important initiative to support the use of sustainable aviation fuel (SAF) in Hong Kong. Bringing together Hong Kong’s largest bank, a local airline, and a leading Hong Kong-based SAF producer, the collaboration aims to support key innovation for the long-term decarbonization of air travel and strengthen Hong Kong’s local SAF ecosystem.
HSBC Hong Kong has entered into a one-time purchase agreement for approximately 3,400 metric tons of SAF produced by EcoCeres, which will be used on Cathay Pacific flights departing from Hong Kong International Airport.
EcoCeres’ SAF is derived from 100% waste-based feedstock, which can provide an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel, certified by the International Sustainability and Carbon Certification (ISCC). This batch of SAF is made from fully traceable raw materials of used cooking oil. The reduction in carbon emissions over the life cycle is estimated at 11,800 metric tons, compared to using the same volume of conventional jet fuel. It is equivalent to the carbon emissions generated by about 10,000 round-trip economy class seats between Hong Kong and London on Cathay Pacific flights.
Mr Lam Sai Hung, Minister for Transport and Logistics of the Hong Kong SAR Government, Ms Clara Chan, Chief Executive Officer of Hong Kong Investment Corporation Limited, Ms Luan Lim, Hong Kong Chief Executive Officer of HSBC Bank, and Mr Ronald Lam, Chief Executive Officer officiated. Cathay Group and Matti Lievonen, CEO of EcoCeres, hosted a party to celebrate this collaboration.
Lam Sai Hung, Minister for Transport and Logistics of the Hong Kong SAR Government, said at the ceremony: “The announcement of this tripartite partnership comes at a crucial time. The collaborative efforts of Cathay Pacific, HSBC and EcoCeres in promoting sustainability are in line with the Government’s initiatives and vision. As As we stated in the CEO’s policy letter last month, our aim is to set a utilization target for SAF over the next year, with the aim of significantly reducing carbon emissions in the aviation sector.
The Hong Kong Special Administrative Region (HKSAR) government’s recent policy speech reaffirmed the city’s commitment to the development of the SAF. For Hong Kong to promote the growth and application of Sudan Airlines, as well as maintain its position as a leading international aviation hub, cooperation between government and business stakeholders is essential. The collaboration announced today represents tangible progress in this direction and encourages the public and private sectors to pursue further SAF initiatives.
Ms Clara Chan, Chief Executive Officer of Hong Kong Investment Corporation Limited (“HKIC”) said: “As a patient capital company, HKIC is moving forward with our investments and strategic partnerships with companies with great vision, teams and growth potential. Which fits our dual mission.” To support Hong Kong’s future development EcoCeres is a classic example of a local company, which has evolved into a well-recognized unicorn on the global stage and we are pleased to see its commitment and concrete actions to support Hong Kong, as well as its continued development As a global leader in the development and use of the Sudanese Armed Forces.
Today’s partnership demonstrates the organization of a ‘Tri-Synergy’ – the synergy between Hong Kong’s roles as an international hub for green technology and finance, as well as an international aviation hub, the synergy between stakeholders from various industries including HSBC, Cathay Pacific and EcoCeres, and the synergy between Hong Kong. Kong and the rest of the world. We look forward to the continued growth of this partnership and the development of the SAF in Hong Kong.
Ms Luan Lim, Chief Executive Officer, Hong Kong, HSBC, said: “This is the largest SAF purchase made by HSBC to date. The Hong Kong initiative will serve as a pilot program that can help pave the way for wider implementation. It reflects our support for new economy solutions and demonstrates How companies can collaborate to support innovative carbon removal technologies.
In October 2020, HSBC set out an ambition to become a net zero bank by 2050. The bank released its first net zero transition plan in January 2024, outlining its approach and ongoing actions to help achieve this ambition.
Mr. Ronald Lam, Cathay Group CEO, said: “We are grateful to HSBC Bank for this historic partnership, which showcases shared leadership in sustainability, and to EcoCeres for its market-leading production of SAF. We are encouraged by the participation of more and more companies in Sharjah Art Foundation-related initiatives. At the same time, we look forward to developing a comprehensive SAF policy in Hong Kong as soon as possible, which is essential for raising our city’s competitiveness, future-proofing it as an international aviation hub and promoting its transition to low-carbon aviation. energy.”
Cathay aims to achieve net zero carbon emissions by 2050 and use SAF for 10% of Cathay Pacific’s total fuel consumption by 2030. To accelerate the transition to SAF, Cathay launched the company’s SAF program in 2022, enabling members to reduce their indirect emissions . associated with air transportation. HSBC Hong Kong was a core member of Cathay’s Corporate SAF programme. The program commits a total of over 6,050 metric tons from the SAF in 2024.
“We are pleased to contribute to the pioneering collaboration with HSBC and Cathay Pacific in piloting the first SAF ecosystem in Hong Kong,” said Mr. Matti Levonen, CEO of EcoCeres. “This initiative will support HSBC in improving the traceability of its travel supply chain and also represents a To support progress towards a greener future, we are confident that this tripartite partnership will serve as a successful model, inspiring global efforts to decarbonize the aviation sector and promote the transition to renewable energy solutions.
EcoCeres is one of the few companies in the world that can convert waste into various types of sustainable transportation fuels, accounting for about 20% of the global SAF market share in 2022 and 2023, according to global SAF production volume published by International Air Transport. Association (IATA).
