Hong Kong and China Gas to Produce Biofuel for Jet Planes as Cathay, Global Airlines Aim to Reduce Carbon Footprint

Aviation Fuel (Sustainable Aviation Fuel (SAF)), BioRefineries/Renewable Fuel Production, Business News/Analysis, China, Feedstocks, Field/Orchard/Plantation Crops/Residues, Funding/Financing/Investing, Hong Kong, Not Agriculture, Opinions, Policy, Sustainability

October 6, 2021

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by Danny Lee (South China Morning Post) Cathay Pacific secures some jet biofuel supply from US, but needs more to meet 2030 pledge; Airlines heed climate warnings, but sustainable aviation fuel remains costly, in short supply — Hong Kong and China Gas (Towngas) will begin producing sustainable aviation fuel (SAF) in small batches by the end of this year in a step towards meeting growing demand from airlines keen to reduce greenhouse gas emissions.

Production will be done at its plant in Zhangjiagang city, Jiangsu province, and will initially yield 50,000 tonnes annually, according to a company spokeswoman. The alternative fuel will be developed from hydro-treated vegetable oil.

“We are in the implementation stage and working on commercial arrangements with [prospective customers], so it may not be appropriate to disclose details at the moment,” she said.

Hong Kong carrier Cathay Pacific last week pledged to use SAFs for 10 per cent of its total fuel consumption by 2030, joining a string of global airlines including British Airways and Delta Air Lines in making the commitment.

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Cathay has so far secured 1.1 million tonnes of biofuel, equivalent to 2 per cent of its annual fuel needs starting from 2024. The fuel will be extracted from household waste in the United States that would otherwise go to landfills.

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In 2014, it invested in Fulcrum BioEnergy, a US-based, waste-to-fuel SAF developer, which also counts United Airlines and energy giant BP as shareholders.

The company is capable of converting 175,000 tonnes of waste into more than 10 million gallons (37 million litres) of sustainable aviation fuel each year.

Towngas, one of Hong Kong’s largest energy suppliers and the biggest distributor of natural gas in mainland China, operates the facility that supplies jet fuel for aircraft at Hong Kong International Airport (HKIA).

Lawrence Lu, programme manager at public policy think tank Civic Exchange, said the convergence of alternative fuel suppliers and airlines was a positive signal.

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“The transition is not free. The consumer – someone – definitely needs to pay the higher price. Also, from the government’s point of view, when the price increases, it will encourage people to use other modes of transport such as high-speed trains, which also helps decarbonisation.”

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“Hong Kong is too small to produce large quantities of biofuels for a large number of flights, but it is possible to look at regional supplies from the mainland,” she (Christine Loh Kung-wai, a former undersecretary for the environment and now an adjunct professor at Hong Kong University of Science and Technology) said. READ MORE

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