Fulcrum Bioenergy, Cathay Pacific announce strategic investment
Cathay Pacific Airways has announced that it is the first airline investor in Fulcrum BioEnergy Inc. a U.S.-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.
The airline has made a strategic equity investment in Fulcrum, which is a world pioneer in the development and commercialization of converting municipal solid waste into sustainable aviation fuel or biojet fuel. Cathay Pacific also has an option for further investment.
Cathay Pacific Chief Executive Ivan Chu said, “We are very pleased to become the first airline investor in this sustainable biofuel developer. We are well aware of the impact the aviation industry has on the environment and have been doing a great deal to minimize our own impact. 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. These fuels are an important component of our sustainable development strategy, under which we aim to achieve carbon-neutral growth from 2020.”
Cathay Pacific has also negotiated a long-term supply agreement with Fulcrum for an initial 375 million U.S. gallons of sustainable aviation fuel over 10 years (representing on an annual basis approximately 2 percent of the airline’s current fuel consumption) that meets all the airline’s technical requirements and specifications. 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.
Cathay Pacific Biofuel Manager Jeff Ovens said, “Fulcrum has successfully demonstrated a process of converting municipal solid waste feedstock into sustainable aviation fuel at its scale demonstration facility. The feedstock will be pre-sorted to remove any recyclables prior to being processed into fuels. The company has proved that its technology is viable and has supply commitments in place for feedstock needed for the fuel production. These supply commitments will cover both near-term and future developments.”
Fulcrum BioEnergy, Inc. President and CEO Jim Macias said, “We value our strategic relationship with Cathay Pacific, one of the world’s premier airlines. Cathay Pacific shares our vision and plan to bring a whole new source of sustainable fuel to the airline industry. A new fuel that has the exact same molecules as fossil fuel but is cleaner, lower in carbon, renewable and lower cost than traditional fossil fuels. Cathay Pacific is really stepping up to help accelerate deliveries of this fuel to the market. This relationship adds to Fulcrum’s existing feedstock, technology and fuel off-take partners that enhance Fulcrum’s low-cost business model for the production and sale of large volumes of low-carbon, jet fuel.”