Canada funds FEED study for planned sustainable aviation fuel plant in Manitoba

The governments of Canada and Manitoba announced June 20 that they are providing CAD$2.9 million (USD$2.2 million) over two years to support Azure Sustainable Fuels Corp.’s front-end engineering design (FEED) study for a planned sustainable aviation fuel (SAF) processing facility near Portage la Prairie, Manitoba, Canada.

The facility’s construction is anticipated to cost approximately CAD$1.9 billion (USD$1.4 billion) and to produce an estimated 264 million gallons per year of SAF, primarily using Canadian feedstock products such as canola and soybean oils.

With Canada’s and Manitoba’s support, the Azure project will create 1,500 construction jobs and approximately 150 direct permanent, highly specialized jobs once in production.

The construction of the Azure facility is projected to have a total impact on the Manitoba economy of CAD$2 billion (USD$1.5 billion).

The first year of operations is expected to create more than CAD$500 million (USD$378.3 million) in economic output and sustain hundreds of jobs throughout Manitoba.

Through the use of the SAF process for the Azure facility, approximately 2.6 million metric tons of CO2 emissions will be reduced on an annual basis, equaling the emissions of 556,749 passenger vehicles.

Manitoba’s sustainable-farming practices, with continued advancements, create further opportunities for increased environmental benefits.

This will have a significant global impact on the aviation industry and decarbonization goals.

The feedstock demands of the SAF facility will create a secure, local market for Manitoba farmers and oilseed producers and an opportunity to advance ongoing efforts to further Manitoba’s sustainable-farming practices.

Azure is working closely with stakeholders, including indigenous communities and the rural municipality of Portage la Prairie, to adhere to and respect all environmental regulations and requirements, the provincial government noted.

“Manitoba is well-positioned for companies like Azure to power the world’s drive to a lower-emissions future and create beyond net-zero energy markets,” said Manitoba Premier Heather Stefanson. “Our goal in supporting Azure is to have Manitoba recognized globally as a leader in successfully integrating agriculture with energy markets to provide a sustainable decarbonization solution while creating more good jobs.”

Azure CEO Douglas Cole added, “We are honored to receive funding from the Sustainable Canadian Agricultural Partnership. The support from Canada and Manitoba validates our vision to create a ‘made-in-Canada’ solution to reduce carbon emissions globally by utilizing local feedstocks and Canadian skillsets. This support not only accelerates economic growth within the province, but also successfully integrates Canadian agriculture with energy markets to provide a sustainable decarbonization solution.”

The Sustainable Canadian Agricultural Partnership is a five-year, CAD$3.5-billion (USD$2.65 billion) investment by Canada’s federal, provincial and territorial governments that supports Canada’s agrifood and agriproducts sectors.

This includes CAD$1 billion (USD$756.7 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.