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Cathay Pacific invests in sustainable biojet fuel developer

(Xinhua) Updated: 2014-08-08 13:57

Cathay Pacific invests in sustainable biojet fuel developer

Ground crew members load cargo onto a jet plane of Cathay Pacific Airways at the Hong Kong International Airport in Hong Kong, China, May1, 2013. [Photo/IC]

HONG KONG - Cathay Pacific Airways announced Thursday that it has invested in Fulcrum BioEnergy Inc, a US - based sustainable biofuel developer, as part of the airline's biofuel strategy and to help it achieve a target of carbon-neutral growth from 2020.

"These fuels are an important component of our sustainable development strategy, under which we aim to achieve carbon-neutral growth from 2020," said Cathay Pacific Chief Executive Ivan Chu.

Cathay Pacific has also negotiated a long-term supply agreement with Fulcrum for an initial 375 million US gallons of sustainable aviation fuel over 10 years, which represents an annual basis approximately 2 percent of the airline's current fuel consumption.

The airline said it is the first airline investor in Fulcrum with a strategic equity investment in the biofuel developer and it also has an option for further investment. But the airline did not disclose the price and the percentage of equity.

Fulcrum plans to commence construction of its first commercial plant later this year and to build large scale, waste-to-renewable jet fuel plants at multiple locations, including locations strategic to the Cathay Pacific network, primarily in North America.

Fulcrum BioEnergy, Inc, President and Chief Executive Officer Jim Macias said jet fuel produced by Fulcrum's waste-to-fuels process will reduce lifecycle carbon emissions when used in aircraft or road transport by more than 80 percent, compared to traditional fuels derived from crude oil and other fossil sources.

He said this process also reduces the amount of municipal solid waste going into landfill sites and the methane gas emissions that result from this. If not captured, methane gas is 21 times more potent than carbon dioxide as a global warming contributor.

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