Aemetis, Inc., a renewable fuels company focused on negative carbon intensity products, announced the volume of an offtake agreement that has been signed with Cathay Pacific Airways Limited (“Cathay Pacific”) for 38 million gallons of blended sustainable aviation fuel (“SAF”) to be delivered over the 7 year term of the agreement.
Sustainable aviation fuel provides significant environmental benefits compared to petroleum jet fuel, including a lower lifecycle carbon footprint and reduced contrails. The blended sustainable aviation fuel to be supplied under this agreement is 40% SAF and 60% Petroleum Jet A to meet international blending standards.
The supply agreement with Aemetis builds on Cathay Pacific’s ongoing commitment towards meeting its net-zero carbon emissions target by 2050. Cathay Pacific plans to use SAF for 10 percent of its total fuel consumption by 2030. The agreement also underlines oneworld Alliance’s commitment to collectively source SAF. Cathay Pacific is a founding member of the oneworld Alliance.
Cathay Pacific is the home airline of Hong Kong, offering scheduled passenger and cargo services to destinations in Asia, North America, Australia, Europe and Africa. The Cathay Pacific Group also comprises low-cost airline HK Express and express freighter airline Air Hong Kong. Cathay Pacific is a member of the Swire Group and is listed?on the Hong Kong Stock Exchange (HKSE).
The sustainable aviation fuel is expected to be produced by the Aemetis renewable jet/diesel plant under development on a 125 acre former U.S. Army Ammunition production plant site in Riverbank, California. The blended sustainable aviation fuel is scheduled to begin deliveries to Cathay Pacific in 2025.
“The use of sustainable aviation fuel by Cathay Pacific is another step by the oneworld Alliance toward lowering the environmental impact of aviation,” stated Eric McAfee, Chairman and CEO of Aemetis. “Sustainable aviation fuel is an immediate solution to the decarbonization of air travel and cargo flights, without requiring extensive new fueling infrastructure or the expensive replacement of planes.”
Powered by 100% renewable electricity, the Aemetis Carbon Zero production plant design utilizes renewable hydrogen. The renewable hydrogen is used to hydrotreat vegetable and other renewable oils to produce renewable aviation and diesel fuel.
To further reduce carbon intensity, the Aemetis Carbon Zero design includes capturing CO2 from the production plant and injecting the compressed CO2 into a sequestration well at the Riverbank site. The project is designed to permanently store an estimated 300,000 metric tonnes of CO2 each year from the plant.