Hong Kong’s EcoCeres to invest HK$10 billion in sustainable aviation fuel base in Dongguan

Dongguan: Hong Kong-incubated sustainable fuel company EcoCeres is set to invest over HK$10 billion ($1.28 billion) to build a regional sustainable aviation fuel (SAF) industrial chain in the Chinese mainland city of Dongguan, in a cross-border partnership designed to advance the Guangdong-Hong Kong-Macao Greater Bay Area’s clean energy ambitions, China Daily reported.

At a ceremony on Tuesday, Hong Kong Special Administrative Region (HKSAR) Chief Executive John Lee Ka-chiu and Dongguan Party Secretary Wei Hao witnessed the signing of a memorandum of understanding (MoU) to establish a Hong Kong SAF base in Dongguan. The project will cover the full value chain from raw materials collection through to mass production.

EcoCeres converts waste cooking oil into internationally certified SAF, which the company says can cut aircraft carbon emissions by more than 80 per cent compared with conventional aviation fuel. Its Dongguan plant, scheduled for completion by 2030, will process locally collected waste cooking oil to produce an annual output of 450,000 metric tons of SAF. The fuel will then be transported by waterway to Hong Kong, where it will be blended with traditional aviation fuel for commercial use.

Speaking at the ceremony, Lee outlined the complementary strengths each side brings to the partnership. Hong Kong will contribute global financing, professional services, and research capabilities, while Dongguan will supply mature industrial infrastructure and a steady source of used cooking oil. He described the arrangement as a “powerful combination” and said the project demonstrated Hong Kong’s alignment with China’s 15th Five-Year Plan for 2026-30 and its response to the country’s green development strategy.

“Today’s MoU means policy alignment, coordinated resource mobilisation, and joint action between Hong Kong and Dongguan,” Lee said. “We are linking the entire supply chain, from raw materials to production. That will drive investment and support our country’s carbon reduction goals.”

As a major global aviation hub, Hong Kong has significantly stepped up its focus on SAF in recent years. The SAR government has set a preliminary target to achieve a SAF usage rate of 1 to 2 per cent for flights departing from Hong Kong by 2030. To support this goal, the Hong Kong Sustainable Aviation Fuel Coalition was launched in 2024, initiated by Cathay Pacific and the Business Environment Council. As of January, the coalition comprises 15 partners, including airlines, banks, and fuel suppliers.