Canada invests $6.2M in sustainable aviation fuel for global leadership

Thursday, January 18, 2024

Canada is solidifying its position as a leading global provider of clean energy in the journey toward a net-zero world. The country boasts an extensive and meticulous climate plan, abundant natural resources, and a skilled workforce. While industries worldwide, including aviation, are actively seeking sustainable energy alternatives, Canadian businesses and workers are spearheading the development of top-tier industries to meet the escalating global demand for a net-zero future.

In Manitoba today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, alongside the Honourable Wab Kinew, Premier of Manitoba, announced a joint federal investment of $6.2 million. This investment, in collaboration with the Canada Infrastructure Bank (CIB) and the Province of Manitoba, includes $5 million from the Clean Fuels Fund. The focus is on supporting sustainable aviation fuels, with Azure conducting a front-end engineering and design (FEED) study to stimulate domestic growth in this emerging sector. The comprehensive project investment amounts to $12.3 million, encompassing nearly $3 million from the Province of Manitoba.

Azure’s FEED study will evaluate and formulate plans for a renewable distillates facility in Manitoba, primarily centered on producing sustainable aviation fuel while maintaining the capability to generate other renewable clean fuels. The planned processing facility, situated near Portage la Prairie, Manitoba, is anticipated to generate over 1,500 jobs during and after construction, producing approximately one billion liters of sustainable aviation fuel annually. The raw materials, such as canola and soybean oils, are sourced locally, providing a substantial economic impact of $2 billion for the Manitoba economy. Moreover, this initiative aligns with the global shift away from more polluting aviation fuels.

This investment builds upon a prior announcement of $5 million in federal funding for a similar project with Azure Sustainable Fuels Corp. in British Columbia. These collective endeavors are unlocking growth opportunities within the domestic clean fuels market, establishing the foundation for future low-carbon fuels. Simultaneously, they support the rapid expansion of the Canadian clean fuels industry to meet global demands, reduce pollution, and enhance energy security and affordability.

The Clean Fuels Fund’s investments leverage technology to unlock opportunities across the supply chain, reinforcing Canada’s position as a preferred global supplier of clean energy in a net-zero world. This strategic approach ensures a prosperous and sustainable future for Canadians across all regions.

Quotes:
“Today in Manitoba, we announced a significant investment to seize global economic opportunities and help position Manitoba and Canada as leaders in the future of Sustainable Aviation Fuel production. These clean fuel projects will help create good jobs and grow the economy, all while reducing pollution on the path to net zero.” – The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources

“By partnering with Azure through our FEED financing, we are supporting a made-in-Canada solution to expand production of sustainable aviation fuels, leverage Canada’s agricultural sector and reduce greenhouse gas emissions in the aviation sector. This is an exciting first step for the CIB, and we look forward to advancing more projects such as carbon capture and storage, hydrogen and clean fuels with our FEED financing initiative.” – Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank

“With innovators like Azure and support from Minister Wilkinson and his government, there is so much opportunity for Manitoba to be a leader in the low-carbon economy. Our province is ready to foster exciting, new technologies that leverage Manitoba’s thriving agricultural sector and position our province as a hub for cutting-edge development in the sustainable aviation fuel space.” – Wab Kinew, Premier of Manitoba

“Today’s investment in Azure’s sustainable aviation fuel projects is an important development for our economy and in the fight against climate change. By investing in good jobs in growing clean industries, the Government of Canada is supporting Manitoban communities to thrive in a prosperous low-carbon future.” – Ben Carr, Member of Parliament for Winnipeg South Centre

“The province of Manitoba is proud to support the biotechnology industry in Manitoba, and this investment reflects our support for all levels of government working together to find solutions to the environmental challenges we are facing. Innovative projects such as this will create the highly skilled jobs needed for the economy of tomorrow.” – The Honourable Jamie Moses, Minister of Economic Development, Investment, Trade and Natural Resources, Province of Manitoba

“Azure’s ambition is to develop the first SAF-dedicated renewable fuel production facility of scale in Canada, and we are pleased to be partnering with the CIB to secure the remaining funding required to complete our FEED studies. We believe that a Canadian SAF facility is a ‘win-win-win’ scenario for all Canadians, its agricultural industry and its aviation industry in that SAF from our facility reduces emissions by up to 80 percent, creates long-term, stable demand for Canadian agriculture products that are currently exported and supports the airline industry in reaching its climate goals.” – Douglas Cole, Chief Executive Officer, Azure Sustainable Fuels Corp.

Quick Facts:

• $5 million in federal funding was provided through Natural Resources Canada’s Clean Fuels Fund (CFF), supporting the construction and expansion of clean fuel production facilities and feasibility and front-end engineering and design studies. This support aims to facilitate sector growth in line with Canada’s climate goals.
• Launched in June 2021, the Clean Fuels Fund intends to invest $1.5 billion to boost clean fuel production in Canada, including hydrogen, biofuels, and synthetic fuels.
• Canada’s Clean Fuel Regulations incentivize innovation and investment in low-carbon alternatives, aiding Canadian industries in progressing toward net zero, enhancing long-term competitiveness, and creating quality jobs.
• According to the International Energy Agency, aviation accounted for 2 percent of global energy-related CO2 emissions in 2022, growing faster than rail, road, or shipping in recent decades. Sustainable aviation fuels are crucial for decarbonizing the sector.
• Developing new sources of clean energy aligns with the Government of Canada and the Province of Manitoba’s commitment to increased collaboration through the Regional Energy and Resource Tables. These tables facilitate partnerships between the federal government and provinces and territories to identify and expedite promising economic opportunities for a net-zero future. The initiative supports clean growth by aligning resources and timelines across all levels of government, coordinating regulatory and permitting processes, and respecting the rights and engaging the interests of Indigenous Peoples, as well as involving key stakeholders like industry and labor.

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