From kitchen waste to sky-high costs: inside Hong Kong’s quest for green jet fuel

Once-neglected "gutter oil" from Hong Kong's kitchens and drains has transformed into a valuable resource for producing sustainable aviation fuel (SAF). Ecoceres, a Hong Kong-based biofuel producer, sources this gutter oil across the Greater Bay Area to create clean energy. Alan Chan Ying-lung, Ecoceres' co-chairman, recalls that gutter oil was once free and even subsidized, but now it costs more than conventional jet fuel.

This feedstock, alongside animal fat and agricultural waste, contributes to renewable jet fuel, which can cut life-cycle carbon emissions by up to 80 percent compared to traditional jet fuel.

The Hong Kong government aims for the city to use SAF by 2030, but it has not yet determined who will bear the cost. Cathay Pacific Airways' CEO, Ronald Lam Siu-por, emphasized the importance of producer confidence, airlines' availability and affordability, and investors' clarity on policy direction. The government initially targeted 1-2 percent of fuel consumption from SAF by 2030, but revised it to 1-3 percent in the city's first five-year plan.

Asia-Pacific associate director of biofuels at S&P Global Energy, Niki Wang Yangwen, believes Hong Kong's goal is achievable, citing global expectations of 1-5 percent for 2030.

With a bustling aviation hub and a dominant home carrier, Hong Kong is in a prime position to support this green fuel transition. The government plans to study a mandatory consumption mechanism and promote educational campaigns by 2028. Additionally, a local blending facility is expected to begin operations by 2030, enabling an end-to-end regional value chain for SAF production and distribution.

EcoCeres, the world's second-largest SAF producer, plans to set up its production base in Dongguan, capable of manufacturing 450,000 tonnes of SAF and renewable diesel annually by full capacity.