China Airlines (CAL), a Taiwan-based carrier, is investing in the future of domestic Sustainable Aviation Fuel (SAF) production by partnering with Formosa Petrochemical Corporation (FPCC). A memorandum of understanding (MOU) was officially signed today (7/22) between China Airlines President Kevin Chen and FPCC President Keh-Yen Lin. China Airlines will purchase more than 10,000 tonnes of SAF domestically produced by FPCC over the next three years to cut carbon emissions by up to 26,000 tonnes. By supporting the development of SAF in Taiwan, the two companies are spearheading the energy transition in the domestic aviation industry and working together to realize the goal of net zero carbon emissions by 2050.

SAF is crucial to carbon reductions in the international aviation industry. China Airlines and FPCC have formed an industry supply chain partnership to meet the goal of low-carbon transportation. 2,500 tonnes of SAF were successfully purchased and transferred between the two companies at the start of the year. These were used on flights departing from Taoyuan and reduced carbon emissions by more than 80% compared to jet fuels. China Airlines will significantly increase its purchase of domestically produced SAF from FPCC over the next three years. Starting this year, all flights departing from Taiwan can be fueled with SAF, supporting the development of new SAF technologies and make the dream of sustainable aviation a reality.

President Kevin Chen stated that China Airlines has been actively following the development of SAF on the international stage since 2013. The first airline in Taiwan to introduce SAF on ferry flights of new aircraft deliveries in 2017. FPCC boasts extensive experience and expertise in terms of production technology, quality control, and supply chain integration. It is also actively investing in its in-house SAF production and making continuous improvements to its production process to increase output. The new partnership between China Airlines and FPCC today sets a new benchmark for the industry that should resonate with even more companies and inspire them to join in as well.

Local production of SAF by FPCC is based on co-processing technology. Used Cooking Oil certified by ISCC CORSIA international standard serves as the bio-based feedstock and combined with petrochemical raw material for co-processing in existing refining facilities. Annual SAF production is expected to reach 50,000 tonnes by 2030. FPCC President Keh-Yen Lin thanked China Airlines for its visionary approach on the promotion of domestic engagement, development and application on SAF. The latest collaboration will integrate the resources and technologies of both parties, and will forge an even more competitive SAF value chain by laying a solid foundation within the domestic aviation and energy supply chain industry in order to achieve a sustainable future.

China Airlines’ longstanding commitment for sustainable development has yield a remarkable result. This year, recognition of the continued progress made by China Airlines included being listed as a constituent stock in the international FTSE4Good Index series for the tenth consecutive times, being listed as a constituent stock in the FTSE4Good TIP Taiwan ESG Index for the seventh consecutive times, ranking in the top 5% of the S&P Global Sustainability evaluation, and recognized as a top performer for overall fuel efficiency in 2025 Q1 among the members of the Association of Asia Pacific Airlines (AAPA). Furthermore, the airline also worked with corporate partners to pioneer several initiatives, including a one-time collaboration with the value chain on a passenger flight, a carbon reduction program for corporate business travel, and a freighter fueling with SAF. (2025/07/22)