- Canada Infrastructure Bank
Canada Infrastructure Bank funds Azure’s FEED study for sustainable aviation fuel production
The Canada Infrastructure Bank announced Jan. 17 that it is partnering with Azure Sustainable Fuels Corp. on a front-end engineering and design (FEED) study for sustainable aviation fuel (SAF) production in Canada.
Azure’s study is now fully funded and on track to be completed in 2024.
CIB’s CAD$8.4 million (USD$6.2 million) funding helps support Azure’s critical path of producing SAF by 2027, which could contribute materially to helping Canada on the path towards meeting its climate goal of net-zero emissions by 2050.
The investment provides support for Azure to leverage Canadian skillsets and maximize options by developing three potential Canadian sites in parallel.
The company has been working closely with provincial, municipal and Indigenous governments to adhere to all environmental regulations.
SAF is considered an essential component in reducing emissions from the aviation industry and its reliance on traditional fossil-based jet fuel.
The use of Azure’s SAF in existing jet engines could reduce airline emissions by approximately 2.6 million metric tons of carbon dioxide per year globally—the equivalent of removing 550,000 passenger vehicles from the road.
The greenhouse-gas emissions reduction is driven by the use of Canadian feedstock from agricultural products such as canola and soybean oils, used to develop the SAF.
With the International Coordinating Council of Aerospace Industries Associations committing to adopt 100 percent SAF capability by 2030 for all commercial and military aircraft, the sustainable fuel market is expected to grow significantly.
As demand increases, SAF produced by Canadian suppliers is expected to add long-term value to the agricultural sector for Canada.
CIB’s FEED initiative is part of its project Acceleration Funding developed to support energy-transition projects in Canada.
CIB is working in partnership with the private sector to target energy-transition projects in Canada, including carbon capture and storage, hydrogen and clean fuels.
Acceleration funding helps address the financing gap for engineering and design work, unlocking potential final-investment decisions for large energy-transition infrastructure.
“By partnering with Azure through 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,” said CIB CEO Ehren Cory. “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.”
Azure CEO Douglas Cole added, “Azure is pleased to be partnering with the CIB to progress our plans to provide a significant source of SAF to global markets and support the transition to a more renewable future. We look forward to continuing to advance this exciting opportunity.”
Jonathan Wilkinson, Canada’s minister of energy and natural resources, said, “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 SAF production. These clean-fuel projects will help create good jobs and grow the economy, all while reducing pollution on the path to net zero.”
Ben Carr, a member of Parliament for Winnipeg South Centre, said, “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.”
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