Sustainable aviation fuel facility may be coming to Manitoba.
A proposed facility in Manitoba could soon help the aviation industry to travel light. Azure Sustainable Fuels Corp. is developing a Canadian-based renewable fuels production facility that will create sustainable aviation fuel (SAF). Leveraging Manitoba’s renewable hydroelectric sources and bountiful agricultural industry and innovations, Azure will produce a low-carbon intensity fuel through proven biofuel conversion technologies that use agricultural feedstock, predominantly canola oil.
“Manitoba offers the ability to directly source canola oil, soybean oils and animal fats from the province’s agricultural community, providing a complete ‘farm to wing’ decarbonizing aviation solution,” says Douglas Cole, CEO of Azure.
At full operating capacity, the proposed Azure facility will be able to produce approximately 20,000 barrels of SAF each day. This new significant source of SAF will help to achieve net zero and meet domestic and international mandates related to the reduction of carbon dioxide (CO2) emissions generated by the aviation sector.
CO2 is the primary gas emitted from planes and is a direct cause of global warming and climate change. While the aviation industry only accounts for approximately two per cent of global greenhouse gas emissions, this number is expected to triple by 2050, and it does not factor in non-CO2 emissions.
“All paths to net zero for the aviation industry rely heavily on SAF, due to the pace at which the industry is growing and the need for a solution faster than technology advancements can meet. SAF is considered a drop-in fuel, currently approved for blending up to 50 per cent in airplanes. The use of Azure’s SAF in existing jet engines could reduce airline emissions by approximately 2.6 million tonnes of carbon dioxide per year globally—the equivalent of removing 550,000 passenger vehicles from the road,” says Cole. “Greenhouse gas emissions will be further reduced by the use of Canadian feedstock from agricultural products such as canola and soybean oils to develop the SAF.”
The International Coordinating Council of Aerospace Industries Associations has committed to a long-term aspirational goal of net-zero CO2 emissions from aviation by 2050. SAF is expected to play a major role in meeting this target by reducing approximately 65 per cent of total emissions. Currently, SAF accounts for less than one per cent of total jet fuel demand. As this demand increases, the Canadian agricultural industry stands to reap the benefits.
“Canada, and Manitoba specifically, offer abundant canola and soybean feedstocks to support SAF production. Currently, the majority of Canadian seed oil is being exported to the US, with a large amount being exported uncrushed, allowing the value-add to occur in the U.S.,” says Cole. “There is a huge opportunity for this facility to create a secure domestic market for canola and soybeans, and export the finished product, rather than exporting the raw materials and buying back finished goods at a premium.”
On average, 85 per cent of Canada’s canola harvest is exported in both seed and oil form. According to Cole, canola exports have been impacted by geopolitical tensions, forcing year-to-year shifts in export markets. As a result, Canada’s agricultural sector is a strong supporter of domestic biofuels as they offer a stable demand source and will keep more value at home.
Azure’s SAF facility will be strategically located nine kilometres west of Portage la Prairie to draw from Manitoba’s abundant agricultural resources and green power, and align with the province’s goals of increasing jobs in the clean energy sector and working towards net zero. This central location also provides easy transportation of finished products across Canada and into the U.S.
Construction is ultimately expected to provide $2 billion to the provincial economy and create 1,500 jobs. More than $500 million in economic output is anticipated in the first year of operations, while the company will employ 150 workers and sustain even more jobs across the province.
“Azure’s facility will unlock growth opportunities across the domestic clean fuels market, laying the groundwork for low-carbon fuels of the future. It will also support the Canadian clean fuels industry’s rapid growth to meet the global demand to reduce greenhouse gas emissions while bolstering energy security and affordability,” says Cole. “The proposed facility will help unlock opportunities across the supply chain and support Canada’s future as a global supplier of choice for clean energy in a net-zero world—ensuring a prosperous and sustainable future for Canadians in every region.”
Azure recently submitted their Environmental Act Proposal and are in the process of completing Front End Engineering and Design (FEED) studies, for which the Government of Manitoba provided $2.9 million from the Sustainable Canadian Agricultural Partnership to support. Azure anticipates receiving an Environmental Act License in spring 2024 and will complete FEED by end of 2024, at which time they will be in the position to make a final investment decision.
