HSBC Hong Kong, Cathay Pacific and EcoCeres are launching a significant initiative to support the use of sustainable aviation fuel (SAF) in Hong Kong. By bringing together Hong Kong’s largest bank, its home airline, and a leading Hong Kong-based SAF producer, the collaboration aims to support a key innovation for the long-term decarbonisation of air travel and foster a local SAF ecosystem for Hong Kong. HSBC Hong Kong is entering into a one-time purchase agreement for around 3,400 metric tonnes of SAF produced by EcoCeres, which will be used in Cathay Pacific flights departing from the Hong Kong International Airport.
EcoCeres’ SAF is derived from 100% waste-based biomass feedstock, which can deliver an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel, certified by International Sustainability and Carbon Certification (ISCC). This batch of SAF is made from fully traceable feedstock of used cooking oil. The reduction in lifecycle carbon emissions is estimated to be 11,800 metric tonnes, compared with use of the same volume of conventional jet fuel. It is equivalent to the carbon emissions arising from around 10,000 roundtrip Economy class seats between Hong Kong and London on Cathay Pacific flights.
Mr Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong SAR Government, Ms Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited, Ms Luanne Lim, Chief Executive Officer Hong Kong of HSBC, Mr Ronald Lam, Chief Executive Officer of the Cathay Group and Mr Matti Lievonen, Executive Chairman of EcoCeres officiated a ceremony to mark the collaboration.
Mr Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong SAR Government said at the ceremony, “The announcement of this tripartite partnership arrives at a crucial time. The collaborative efforts of Cathay Pacific, HSBC and EcoCeres in advancing sustainability resonate with the Government’s initiatives and vision. As mentioned in the Chief Executive’s Policy Address last month, our goal is to establish a usage target for SAF within next year, aiming to significantly reduce carbon emissions in the aviation sector.”
The recent Hong Kong SAR Government’s Policy Address reaffirmed the city’s commitment to SAF development. For Hong Kong to cultivate the growth and application of SAF, as well as maintain its status as a leading international aviation hub, collaboration between government and business stakeholders is essential. The collaboration announced today signposts meaningful progress in this direction and encourages the public and private sectors to pursue further SAF initiatives.
Ms Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited (“HKIC”) said, “As Patient Capital, the HKIC has been pressing ahead with our investment in and strategic partnership with enterprises with great vision, teams and growth potential, which fit our dual mandate to support the future development of Hong Kong. EcoCeres is a classic example of a home-grown company, which has developed into a well-recognised unicorn on the global stage. We are pleased to see its commitment and concrete actions to support Hong Kong, as well as its continued development as a global trailblazer in SAF development and usage.
Today’s partnership demonstrates the curation of “Tri-Synergy” – synergy between Hong Kong’s roles as international green technology and finance centre, as well as international aviation centre, synergy among stakeholders from different industries comprising HSBC, Cathay Pacific and EcoCeres, and synergy among Hong Kong and rest of the world. We look forward to the continued growth of this partnership and SAF’s development in Hong Kong.”
Ms Luanne Lim, Chief Executive Officer Hong Kong,HSBC, said, “This is the largest SAF purchase that HSBC has undertaken to date. The Hong Kong initiative will serve as a pilot programme, which could help pave the way for broader implementation. It reflects our support for new economy solutions and demonstrates how businesses can collaborate to support innovative decarbonisation technologies.”
