DHL Express and the Cathay Group have entered into a new partnership to expand the use of sustainable aviation fuel (SAF) in Asia, aiming to reduce carbon emissions from regional cargo operations and strengthen SAF supply.
Under the agreement, Cathay will provide DHL with 2,400 tonnes of SAF for use on Air Hong Kong flights the Cathay-owned carrier that operates dedicated express cargo services for DHL. The fuel will be deployed on international routes departing from Seoul Incheon, Tokyo Narita, and Singapore Changi airports.
The deal, which runs through 2025, is projected to cut lifecycle greenhouse gas emissions by about 7,190 tonnes the equivalent of over 100 Airbus A330 freighter flights between Hong Kong and Singapore.
Addressing carbon emissions
Peter Bardens, Senior Vice President for Network Operations & Aviation Asia Pacific at DHL Express, said that although SAF currently accounts for less than 1% of global jet fuel consumption, it represents a vital lever for reducing aviation emissions.
“Our decision to expand SAF usage in Asia with Cathay is another important step to drive momentum in SAF production and demand,” Bardens said. “It aligns with DHL Group’s Strategy 2030, which places ‘green logistics of choice’ among its four core pillars.”
The initiative also marks the first time Air Hong Kong flights will be powered by SAF, which Cathay Cargo Director Tom Owen described as a “key milestone” for the airline group. He emphasised the importance of collaboration in making SAF more accessible and scalable across Asia.
As part of the deal, DHL will join Cathay’s Corporate SAF Programme, launched in 2022 to help partners address carbon emissions from business travel and airfreight. In 2024, the programme facilitated the use of more than 6,000 tonnes of SAF with 16 corporate participants, including HSBC, AIA, and Standard Chartered.
Cathay has been actively expanding SAF sourcing, including a recent supply agreement with Sinopec for SAF produced in mainland China the first such export to Hong Kong International Airport and a partnership with SK Energy to secure SAF supply in South Korea from 2025 to 2027.
Beyond supply deals, Cathay co-founded the Hong Kong Sustainable Aviation Fuel Coalition to support policy development and encourage industry adoption. DHL Express, which has long invested in SAF globally, holds long-term agreements with Neste, bp, and World Energy. In Japan, it works with Cosmo Oil Marketing to use domestically produced SAF, and earlier this year secured 7,400 tonnes of SAF from Neste for flights from Singapore. The company says such initiatives also help it develop logistics solutions for transporting renewable and alternative fuels, a growth area under its 2030 strategy.