Hong Kong’s continued role as a major international aviation hub faces increasing uncertainty unless the city secures a stable and certified supply of sustainable aviation fuel (SAF), according to Stephen Wong Yuen-shan, head of the Chief Executive’s Policy Unit. Speaking at the Sustainable Aviation Futures China Congress, Wong emphasized that evolving global regulations and economic conditions are driving the shift toward SAF, making it critical for Hong Kong to align its aviation fuel strategy accordingly.
Wong’s comments come shortly after the government unveiled its first five-year fuel plan and policy address, which include targets for SAF deployment amid intensifying competition from other global aviation centers. The administration aims for SAF to represent between 1 and 3 percent of the fuel consumed by departing flights from Hong Kong by 2030, Chief Executive John Lee Ka-chiu announced. The policy address also pledges to study the introduction of a SAF mandate by 2028, signaling a move from voluntary targets to binding requirements.
SAF is derived from renewable resources such as used cooking oil and agricultural waste, capable of reducing emissions by up to 80 percent over its life cycle compared to conventional jet fuel. It can be used as a drop-in fuel without requiring modifications to existing aircraft engines. Wong highlighted that international efforts, including those by the International Civil Aviation Organisation, target a 5 percent reduction in global aviation emissions by 2030 as a step toward achieving net-zero carbon emissions by 2050. Regional markets have introduced varying policies: the European Union and the United Kingdom have SAF mandates, while Singapore and Japan have set specific consumption targets.
Wong stressed that transitioning SAF from a niche product to a strategic sector requires sustained, long-term planning beyond annual policy cycles. “When long-term planning and annual execution move together, a policy signal can become an investment decision; individual projects can become a value chain; and an emerging fuel can become a strategic industry,” he said.
A key component of Hong Kong’s strategy involves leveraging opportunities within the Greater Bay Area to build an integrated SAF supply chain. Wong pointed to EcoCeres, a Hong Kong-based biofuel company backed by Peter Lee Ka-kit’s family office, which is developing a facility in Dongguan expected to be operational by 2030. Once at full capacity, the facility plans to produce approximately 450,000 tonnes of SAF and renewable diesel annually. The project marks the region’s first complete SAF value chain, encompassing waste feedstock collection, refining, production, and research and development functions spanning the Greater Bay Area and Hong Kong.
According to Wong, the establishment of such infrastructure is a significant step in making the SAF supply chain tangible and financially viable, thereby supporting Hong Kong’s aspirations to maintain its aviation hub status amid global shifts toward greener fuels.