Malaysia has emerged as a potential location for a $70 million co-investment project between Cathay Pacific and Airbus aimed at scaling sustainable aviation fuel (SAF) production in the Asia-Pacific region.
The partnership, announced by Cathay Pacific and Airbus, seeks to accelerate SAF adoption and address the aviation industry's urgent need to reduce carbon emissions through alternative fuel sources.
Industry experts note that Malaysia's existing palm oil industry and biofuel infrastructure make it a strategic candidate for SAF production facilities, though the final location has not been officially confirmed.
Sustainable aviation fuel, produced from renewable resources like waste oils and agricultural residues, can reduce lifecycle carbon emissions by up to 80 percent compared to conventional jet fuel, according to aviation industry data.
This co-investment initiative reflects the growing commitment among major airlines and aircraft manufacturers to achieve net-zero carbon emissions targets, with Cathay Pacific and Airbus positioning themselves at the forefront of sustainable aviation transformation in Asia.
