Cathay Pacific looks for stable supply of cleaner aviation fuels

Cathay Pacific Airways of Hong Kong is looking for ways to have a stable supply of cleaner aviation fuels in anticipation of the European Union (EU) climate rule. The EU rule mandates that all airlines in Europe’s airspace must buy carbon credits if their emissions exceed a certain cap. Cathay Pacific could suffer loses if the EU rule is enforced because it has Hong Kong’s largest number of direct flights to Europe. Aside from the EU climate rule, the American Society for Testing and Materials (ASTM) also approved a 50-50 mixture of conventional jet fuel and biofuels for use in commercial and military aircraft. Cathay Pacific’s Head of Environmental Affairs, Mark Watson, said the solution could be a mixed one. “Cathay Pacific is now looking at all options, ranging from being an end user-buying fuel in a conventional way to going more upstream, which means being involved in the production of fuel or supply. Our linkages with the Swire Pacific Group is an interesting synergy that might need to be explored around supply and logistics,” he said. Carriers are also considering biofuels. “We have seen other airlines announcing contracts and deals. For the first time China has also started to look at biofuels,” Watson said. “If we see more activity and more airlines like Air China getting involved, the scale of the industry will grow. That will make supply more sustainable and make prices drop.” (August 3, 2011)