Canada to invest C$6.2 million to support growth of sustainable aviation fuel industry

Canada is set to invest C$6.2 million ($4.6 million) in a new study aimed at supporting the growth of a sustainable aviation fuel (SAF) industry within the country, reported Airport-Technology.

Azure Sustainable Fuels will conduct a front-end engineering and design (FEED) study, with C$5 million from the Clean Fuels Fund and an additional C$3 million investment by the Province of Manitoba. Minister of Energy and Natural Resources Jonathan Wilkinson sees this funding as a significant step towards positioning Canada and Manitoba as leaders in future SAF production, contributing to economic growth and job creation while advancing environmental goals.

The total investment in the project, including contributions from the Canada Infrastructure Bank (CIB), amounts to C$12.3 million. This financial support will aid Azure in developing a factory in Portage la Prairie, Manitoba, focused on producing low-emission fuel using Canadian feedstocks such as canola and soybean oils.

This initiative builds on a previous investment in June 2023 when Natural Resources Canada granted Azure C$5 million through the Clean Fuels Fund for a project in British Columbia. Azure aims to establish the first dedicated large-scale SAF production facility in Canada. CEO Douglas Cole emphasized the positive impact of such a facility, stating that it represents a “win-win-win” scenario for Canadians, the agricultural industry, and the aviation sector. The SAF produced by Azure’s facility can reduce emissions by up to 80%, creating stable demand for Canadian agricultural products and supporting the aviation industry in achieving climate goals.


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