Hong Kong / Beijing, Jan 13: Cathay has welcomed the release of Igniting the SAF Market: Policy Pathways for Scaling Sustainable Aviation Fuel in China, a comprehensive research study published by Peking University’s National School of Development in late 2025. The study provides timely and actionable insights into accelerating the adoption of sustainable aviation fuel (SAF) across the Chinese Mainland, addressing both supply- and demand-side challenges.

The report analyses the current barriers and untapped potential in scaling SAF production and deployment in China, drawing on global best practices and benchmarking them against the country’s successful solar photovoltaic industry. It highlights China’s strong feedstock availability and manufacturing capabilities, while evaluating long-term cost trajectories across multiple SAF production pathways.

Notably, the study identifies the Power-to-Liquid (PtL) pathway commonly used to produce electro-sustainable aviation fuel (eSAF)—as having the greatest potential for long-term cost reduction. With appropriate policy support, locally produced SAF via the PtL route could achieve price parity with conventional jet fuel, inclusive of China’s projected 2030 carbon price, once cumulative eSAF production reaches approximately 1.6 million tonnes.

The study further recommends a multi-pronged approach to building a robust national SAF ecosystem. Key measures include policy integration, stimulating market demand, expanding access to international markets, and establishing procurement mechanisms that ensure long-term supply and demand stability.

Commenting on the findings, Grace Cheung, General Manager Sustainability at Cathay, said:

“As a vital player in global aviation and the SAF ecosystem, the Chinese Mainland’s development of its domestic SAF industry not only supports national carbon targets, but also contributes to improving the global availability and affordability of sustainable aviation fuel.”

“This study by Peking University is highly encouraging, as it demonstrates the long-term potential for cost parity between SAF and conventional jet fuel. Achieving this will require sustained support for new technologies, large-scale SAF production, and policy frameworks that address both supply and demand. Such progress is essential for global airlines to scale SAF usage in a commercially viable manner.”

Cathay has been a longstanding supporter of SAF development in the Chinese Mainland and globally. The Group was among the early adopters of Chinese-made SAF, uplifting SAF at Hong Kong International Airport, Amsterdam Schiphol Airport, and London Heathrow Airport.

SAF remains a critical pillar of aviation’s decarbonisation pathway. Compared with conventional jet fuel, SAF can reduce lifecycle carbon emissions by around 80%, based on the SAF procured by the Cathay Group in 2024.