Hong Kong-based renewable fuels producer EcoCeres announced on Monday that it had signed a multi-year agreement to supply British Airways with sustainable aviation fuel, a move expected to reduce lifecycle carbon emissions by approximately 400,000 metric tonnes.

The agreement forms part of British Airways’ push to meet its sustainability goals, including a target to power 10 percent of its flights with SAF by 2030, in line with the UK government’s SAF mandate.

SAF to Cut Emissions by Up to 80%

Under the deal, EcoCeres will provide SAF produced from 100 percent waste-based biomass feedstocks, such as used cooking oil.

According to EcoCeres, the fuel can deliver up to 80 percent reduction in lifecycle emissions compared with traditional jet fuel.

The total emissions savings from the contract are equivalent to the carbon footprint of flying roughly 240,000 economy-class passengers on return flights between London and New York.

“We are proud to partner with British Airways in this strategic agreement to jointly tackle greenhouse gas emissions in aviation,” said EcoCeres CEO Matti Lievonen. “Our commitment to sustainability is unwavering.”

British Airways Sees SAF as Key to Net-zero Goal

British Airways has been increasing its use of SAF, which accounted for 2.7 percent of its total fuel consumption in 2024. The airline said it has cut its carbon intensity by 13 percent since 2019.

“At British Airways, we see sustainable aviation fuel as an important part of our BA Better World strategy,” said Carrie Harris, the airline’s director of sustainability. “This new agreement with EcoCeres is another important step forward on our journey to reach net-zero carbon emissions by 2050.”

SAF is chemically similar to fossil jet fuel and can be used in existing aircraft and infrastructure without modification.

While it still emits carbon dioxide when burned, the emissions are considered part of the existing carbon cycle, making it a lower-carbon alternative to conventional fuel.

EcoCeres Expands Production, Eyes Growth

EcoCeres, which produces industrial-scale SAF, hydrotreated vegetable oil, and renewable naphtha, is backed by Bain Capital and Kerogen Capital.

It was spun out of Hong Kong utility Towngas and is certified by the International Sustainability and Carbon Certification body.

The company stated that the partnership with British Airways marks a significant milestone in its growth strategy and highlights its role in advancing low-carbon fuel solutions.

Industry Faces Supply Constraints

Despite its emissions benefits, SAF remains in limited supply globally, with current usage levels still below 3 percent of total aviation fuel consumption. Analysts expect broader adoption to depend on increased production capacity and regulatory support.

British Airways and EcoCeres did not disclose the volume or value of the SAF supply agreement.