Hong Kong Aviation Sustainable Fuel Market
Due to rising environmental awareness, there is an ascending demand for sustainable aviation fuel (SAF) in different airlines across the globe. For instance, the production of SAF has increased over eight times in the U.S. in the past six years. With the HK government’s initiative and the support of the local aviation sector, Hong Kong is ambitious to become a SAF hub, which provides favorable conditions and ample opportunities for U.S. companies possessing expertise and technological capabilities in this field.
Opportunities for U.S. companies
Formation of cross-sector SAF organization
The Hong Kong Sustainable Aviation Fuel Coalition (HKSAFC) was officially launched in January 2024. Partnering with local airlines, airport regulators, and fuel suppliers, this cross-sector organization aims to address issues such as supply-chain infrastructure needs and the generation of tradeable and credible carbon credits. It also strives to augment the SAF supply and adoption in the city. By applying these measures, HKSAFC is determined to take the lead in decarbonizing the aviation industry and position Hong Kong as a regional and global hub of SAF. Hence, it could provide a lucrative business opportunity for U.S. SAF companies to expand their international presence.
Favorable policies
The Airport Authority (AAHK) has introduced several measures to promote the use of SAF at Hong Kong International Airport (HKIA). In particular, AAHK collaborated with the government to simplify the approval process for the transportation and storage of SAF. For example, the government has revised the Dangerous Goods Ordinance to align the regulations for the classification, marking, and labelling of SAF in Hong Kong with international standards. The government also improved the licensing system regarding the manufacture, conveyance, storage, and adoption of dangerous goods, including SAF. These favorable policies could reduce the legal risks faced by overseas investors.
Local airlines’ commitment to environmental sustainability
Cathay Pacific, the city’s largest airline company, aims to achieve net-zero carbon emissions by 2050. To meet this target, it has pledged to use SAF for 10% of its total fuel consumption by 2030. For local and overseas refueling, the company currently sources its SAF from Europe and the U.S., such as through Nestle, due to the availability and price competitiveness. As the SAF market in Hong Kong is still considered premature with a limited production capacity, U.S. SAF companies could benefit from this opportunity to expand their businesses in Asia-Pacific.
Mature supporting infrastructure
The current fuel infrastructure at Hong Kong International Airport is already equipped to receive, store, and utilize preblended SAF from airlines. These essential infrastructures could facilitate the operation of U.S. SAF companies in Hong Kong.
For more information, please contact us at Office.Hongkong@trade.gov.