Cathay Pacific has launched a new Sustainable Aviation Fuel (SAF) Programme, the first major programme of its kind in Asia, which provides corporate customers the opportunity to reduce their carbon footprint from business travel or airfreight by contributing to the use of SAF uplifted for the first time from Hong Kong International Airport on Cathay Pacific flights.
Cathay Pacific is kick-starting the programme with eight corporates as launch customers, including AIA, Airport Authority Hong Kong (AAHK), DHL Global Forwarding, HSBC, Kintetsu World Express (KWE), PwC China, Standard Chartered, and Swire Pacific. The deal is aimed to help facilitate the wider adoption of renewable energy by the air transport industry through the use of SAF.
Chief executive officer Augustus Tang said: “We continue to pioneer our industry’s move towards more substantial use of SAF, especially in Asia. Last year, we were among the first carriers in the world to announce a target of 10% SAF for our total fuel use by 2030. We have made significant progress since then and are pleased that uplifting SAF from HKIA is now a reality with the strong support of the local authorities and fuel suppliers.
“In addition to our launch corporate customers, we have received a very enthusiastic response from other corporates, and we welcome other interested companies to sign-up to reduce their indirect emissions from flight-related activities. Climate change is a global challenge, and we need to work together to tackle it.
“We see the launch of this Corporate SAF Programme as an important step for us to engage other like-minded organisations, and a first step in sending an important demand signal to the SAF supply chain that there is firm interest in the region, not only from airlines, but also the aviation value-chain all the way to end users for both passenger and cargo transportation.”
SAF is considered the most important way to decarbonise airline operations in the next few decades, before alternatively powered aircraft can be widely deployed in commercial operations. Compared to conventional jet fuel, SAF can reduce up to 100% carbon emissions on a lifecycle basis, depending on the SAF technology used. Aircraft today are powered by liquid aviation fuel, made mostly from fossil fuel sources. Yet new fuels have been developed that have the potential to dramatically reduce aviation’s net CO2 emissions. Although supply is currently limited (0.01% of global jet fuel use), sustainable aviation fuels (SAF) are already in use today and take-up is increasing.
The SAF used for the launch of this programme is made from used cooking oil and animal fat waste. It is made available to us by SAF Programme fuel suppliers Petro-China and Shell.
SAF is a clean substitute for fossil jet fuels. Rather than being refined from petroleum, it is produced from sustainable resources such as waste oils from a biological origin, or non-fossil CO2. It is a so-called drop-in fuel, which means that it can be blended with fossil jet fuel and that the blended fuel requires no special infrastructure or equipment changes. It has the same characteristics and meets the same specifications as fossil jet fuel.
Since the first commercial flight operated by KLM in 2011, more than 150,000 flights were powered by SAF. Commercial aviation currently accounts for approximately 2-3% of manmade global carbon emissions, but without action, aviation could consume up to 22% of the global carbon budget by 2050. To maintain growth and at the same time address its environmental impact, the aviation industry has committed to carbon-neutral growth per 2020 and reducing net aviation carbon emissions to 50% below 2005 levels by 2050.
More than 99% of airline emissions and approximately 50% of airport emissions are related to the combustion of jet fuel. Although increased energy efficiency and reduction in energy demand are effective ways to reduce fuel consumption and related greenhouse gas emissions, these improvements do not offer a sole solution to aviation-related emissions.
The aviation industry has a clear vision for its use of SAFs, and will adopt only fuels made from feedstocks that can be grown or produced without the risk of unintended environmental and social consequences, such as competition with food production or deforestation.
Several airlines are driving forward the use of SAFs by signing multi-million dollar forward purchasing agreements. Others have invested in start-up support for SAF deployment, and some have promoted SAFs through test flights, research, and investigation of local opportunities. Five airports also have a regular SAF supply: San Francisco, Los Angeles, Oslo, Bergen and Stockholm.
However, scaling up the use of SAFs to a global market is challenging and requires substantial investment. The industry has called on governments to assist potential SAF suppliers to develop the necessary feedstock and refining systems – at least until the fledgling industry has achieved the necessary critical mass and prices drop thanks to economies of scale.
More than 45 airlines now have experience with SAF, and around 14bn litres of SAF are in forward purchase agreements.
Cathay Pacific is undertaking a multi-pronged approach towards a green recovery and long-term transition towards its goal of net-zero carbon emissions by 2050. Apart from its increased usage of SAF, Cathay Pacific’s carbon reduction roadmap includes fleet modernisation, operational efficiency improvements, leveraging on emerging technology breakthroughs to decarbonise aviation, and offering carbon offsets through its Fly Greener programme.
Boeing says that sustainably produced jet fuel, which reduces CO2 emissions by as much as 80% over the fuel's life cycle with the potential to reach 100% in the future, is widely recognised as offering the most immediate and greatest potential to decarbonise aviation over the next 20 to 30 years. Approximately a year ago, Boeing committed to delivering its commercial airplanes capable and certified to fly on 100% SAF by 2030.
In the US, Aemetis Inc — a renewable fuels company focused on “negative carbon intensity products” – announced this week an agreement has been signed with JetBlue for 125mn gallons of blended sustainable aviation fuel (SAF) to be delivered over the 10 year term of the agreement. The value of the contract including incentives is approximately $530mn.
“JetBlue is proud to lead the aviation industry with its climate and SAF commitments and is encouraged by the continued growth of the SAF market, which will be vital to reaching our own 2040 net zero target,” stated Robin Hayes, JetBlue CEO. “We also recognise the value of California’s renewable fuel incentives that help grow SAF in the state. State and federal incentives encourage clean energy jobs and economic activity, demonstrating that what’s good for our environment is often good for business.”
The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125-acre former US Army Ammunition production plant site in Riverbank, California. The blended sustainable aviation fuel is scheduled to begin deliveries to JetBlue in 2025.
“The adoption of sustainable aviation fuel to reduce the environmental impact of aviation is a significant mega-trend led by JetBlue and other airlines,” stated Eric McAfee, Chairman and CEO of Aemetis. “Our production of SAF in California is due to the commitment by CARB to the success of the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state while improving the environment worldwide.”


The author is an aviation analyst. Twitter handle: @AlexInAir
 
 
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