In Canada, the Manitoba Government has announced that it has signed a contribution agreement through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to provide CA$2.9 million over two years for compatriot sustainable aviation fuel (SAF) project developer Azure Sustainable Fuels Corp.’s Front End Engineering Design (FEED) study for a proposed SAF facility.
The Sustainable CAP is a five-year, CA$3.5-billion investment by Canada’s federal, provincial, and territorial governments that supports Canada’s agri-food and agri-products sectors.
This includes CA$1 billion in federal programs and activities and a CA$2.5-billion commitment that is cost-shared 60 percent federally and 40 percent provincially-territorially for programs that are designed and delivered by provinces and territories.
The announcement was made on December 19, 2023, by Federal Agriculture and Agri-Food Minister Lawrence MacAulay and Manitoba Agriculture Minister Ron Kostyshyn.
The agriculture sector plays an important role in creating sustainable decarbonization solutions that add value to Manitoba by growing revenue and employment. This is a cutting-edge project for Manitoba farmers and oilseed processors. It is an opportunity to advance ongoing efforts to further Manitoba’s world-class sustainable farming practices, said Minister Ron Kostyshyn.
Made-in-Canada solution
The Azure Sustainable Fuels study outlines plans for using Canadian feedstock products such as canola- and soybean oils to produce as much as an estimated one billion litres of SAF per year.
The mission of this project is to provide a made-in-Canada solution to source certified low-carbon fuels to meet their emissions reduction targets.
I’m pleased to be supporting Azure with funding through the Sustainable Canadian Agricultural Partnership. Their innovative research into converting feedstock to sustainable fuel will create new economic opportunities for our farmers while helping reduce emissions, said Minister Lawerence MacAulay.
The FEED study will ensure that engineering, efficiency, and development needs are met before construction, noted the ministers, adding SAF is a liquid fuel currently used in commercial aviation that can reduce the aviation industry’s carbon dioxide (CO2) emissions by up to 80 percent.
Azure Sustainable Fuels has estimated that SAF could contribute to up to 65 percent of the reduction of emissions needed by the aviation industry to reach net zero by 2050.
The company is working closely with the Manitoba government, the Rural Municipality (RM) of Portage la Prairie, Indigenous groups, and local stakeholders to adhere to and respect all environmental regulations and requirements. The company has engaged the RM of Portage la Prairie as a location for this project.
Azure is pleased to be receiving this funding from the Sustainable Canadian Agriculture partnership to support our FEED study for our proposed SAF facility in Manitoba. This funding allows Azure to move one step closer to creating a made-in-Canada solution to meet net-zero targets by utilizing Manitoba’s agriculture industry and adding value to Manitoba crops, said Douglas Cole, CEO at Azure Sustainable Fuels.
