Canadian government invests CAD$15 million in clean-fuels projects

Natural Resources Canada announced March 8 that the federal government is investing CAD$15 million (USD$11.1 million) to support six clean-fuels projects across Canada, including CAD$10 million (USD$7.4 million) for two projects in the Niagara region.

The investments include funding work for renewable natural gas, woody biomass to energy and sustainable aviation fuel (SAF).

A third of the CAD$15 million is going to Azure Sustainable Fuels Corp. for its front-end engineering and design (FEED) study to support the construction and operation of its SAF production facility in Port Colborne, Ontario.

If the project reaches a positive final-investment decision (FID), following the completion of the FEED study, it is expected that the Azure’s SAF project would support approximately 1,500 construction jobs and 150 full time jobs during operations in Port Colborne, Ontario.

The FEED study is expected to be completed in by the end of 2024 and the construction of the planned facility is planned to begin following a positive FID. 

The proposed project will be located on the north end of Port Colborne, Ontario, along the Welland Canal—a strategic location that will provide immediate access to local and global markets.

The planned processing facility in Port Colborne will leverage Canada’s agricultural sector to produce SAF that will meet the growing demand to help reduce emissions from the aviation sector. 

Azure’s proposed project in Port Colbourne is one of three projects that Azure is progressing in Canada, with support from the federal government, to provide a scalable growth platform to provide a significant source of SAF required to meet domestic and international mandates to reduce CO2 emissions.

“Natural Resources Canada is proud to support the growth of the low-carbon economy in Canada through the Clean Fuel Fund,” said Jonathan Wilkinson, Canada’s minister of energy and natural resources. “Today’s federal investment of CAD$15 million in clean-fuels projects across Canada, including $10 million for projects right here in the Niagara region, will help decarbonize the operations of high-emitting sectors like steel, mining and aviation, create good jobs in local communities, power homes and businesses efficiently and attract investment into Canada’s clean-fuels market. We will continue to support innovative projects to decarbonize and keep going on the energy transition for the Niagara region and for the country as a whole.”

Douglas Cole, CEO of Azure Sustainable Fuels, added, “Azure is dedicated to building the next major SAF facility to come to market. With the support of NRCan’s Clean Fuel Fund, Azure is advancing FEED studies in Ontario, Manitoba and British Columbia as part of a portfolio approach to provide a scalable growth platform that enables cost efficiencies and shared learnings. Azure is pleased to be partnering with the federal government on a suite of projects that will provide stable, long-term demand for Canadian agricultural products as well as support the energy transition and a cleaner environment by enabling the reduction of emissions from aviation by up to 80 percent.”