Manitoba signs agreement to provide Azure Sustainable Fuels $2.2 million for SAF FEED study

The Canadian provincial government of Manitoba signed a contribution agreement Dec. 19 through the Sustainable Canadian Agricultural Partnership to provide CAD$2.9 million (USD$2.2 million) over two years for Azure Sustainable Fuels Corp.’s front-end engineering design (FEED) study for sustainable aviation fuel (SAF).

The intent to provide the funding was first announced in June.

“The agriculture sector plays an important role in creating sustainable decarbonization solutions that add value to Manitoba by growing revenue and employment,” said Ron Kostyshyn, Manitoba’s agriculture minister. “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.” 

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 1 billion liters (264 million gallons) of SAF per year.

The mission of this project is to provide 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,” said Lawrence MacAulay, the federal agriculture and agri-food minister. “Their innovative research into converting feedstock to sustainable fuel will create new economic opportunities for our farmers while helping reduce emissions.” 

The FEED study will ensure engineering, efficiency and development needs are met prior to construction, noted the ministers, adding SAF is a liquid fuel currently used in commercial aviation that can reduce the aviation industry’s CO2 emissions by up to 80 percent.

Azure Sustainable Fuels has estimated SAF could contribute to up to 65 percent of the reduction of emissions needed by the aviation industry to reach net zero by 2050.

“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,” said CEO Douglas Cole. “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.”  

Azure is working closely with the Manitoba government, the rural municipality of Portage la Prairie, Indigenous groups and local stakeholders to adhere to and respect all environmental regulations and requirements.

The company has engaged Portage la Prairie as a location for this project. 

The Sustainable Canadian Agricultural Partnership is a five-year, CAD$3.5 billion (USD$2.6 billion) investment by Canada’s federal, provincial and territorial governments that supports Canada’s agri-food and agri-products sectors.

This includes $1 billion (USD$750 million) in federal programs and activities and a $2.5 billion (USD$1.9 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.