Cathay Pacific Airways has announced that it will invest in US based alternative fuels developer Fulcrum BioEnergy.
Cathay has also entered into a long-term supply agreement with Fulcrum that will see it initially take 375 million US gallons of biofuel over 10 years.
“We are pleased to have identified Fulcrum as a strategic business partner that has the necessary vision and technological know-how to help Cathay Pacific pursue the use of biojet fuels,” says the airline’s chief executive Ivan Chu. “These fuels are an important component of our sustainable development strategy, under which we aim to achieve carbon-neutral growth from 2020.”
The airline did not disclose the size of the transaction, nor the stake that it will hold in Fulcrum.
Fulcrum focuses on converting municipal solid waste into aviation fuel, and has plans to build its first commercial-scale production facility later this year. The company claims that its fuels cut lifecycle carbon emissions by more than 80%.