Air Canada and Airbus have announced plans to establish a jointly funded sustainability investment platform to accelerate sustainable aviation fuel (SAF) production in Canada, committing up to CAN$13.7 million (US$10 million) to support the development of a commercial-scale domestic SAF industry, Hydrocarbon Engineering reported.
The two companies said the proposed Sustainability Co-Investment Platform aims to help advance selected Canadian SAF projects towards a Final Investment Decision (FID). They added that the initiative is intended to complement government efforts to create a policy framework that encourages large-scale production of renewable aviation fuels.
Air Canada and Airbus said they will continue working with federal and provincial governments, as well as the Canadian Council for Sustainable Aviation Fuels (C-SAF), to promote policies that improve the competitiveness of domestically produced SAF and ensure long-term fuel availability for the aviation sector.
Valerie Durand, Vice President, Airport Affairs, Corporate Real Estate and Sustainability at Air Canada, said the partnership represents an important step in supporting Canada’s aviation energy transition while helping corporate customers reduce emissions associated with business travel.
Airbus Chief Sustainability Officer Julie Kitcher said decarbonising aviation will require long-term investment and close collaboration across the industry. She said the new platform would help stimulate both the production of and demand for sustainable aviation fuel in Canada, which has significant biomass feedstock potential.
As part of the initiative, Airbus has signed a five-year agreement under Air Canada’s Leave Less Travel Program, becoming one of the programme’s long-term participants.
Under the agreement, Airbus will purchase sustainable aviation fuel environmental attributes linked to more than 60,000 litres of SAF in its initial allocation. Air Canada will track greenhouse gas emissions associated with Airbus employees’ business travel and retire verified SAF environmental attributes on the company’s behalf.
The companies said the programme is designed to encourage greater corporate participation in SAF adoption and support the expansion of Canada’s renewable aviation fuel market.
Air Canada said renewable aviation fuels complement its ongoing fleet modernisation programme, which includes more fuel-efficient aircraft such as the Airbus A321XLR and the Airbus A220.
Both companies reaffirmed their support for the aviation industry’s goal of achieving net-zero carbon emissions by 2050, describing SAF as one of the key technologies required to decarbonise air transport.
Alongside the announcement, Airbus and consulting firm ICF released a study estimating that meeting 40% of Canada’s aviation fuel demand with domestically produced SAF by 2040 could contribute CAN$32 billion to the country’s gross domestic product and create around 140,000 jobs across agriculture, forestry and urban industries.
The companies said the new investment platform is intended to help unlock these economic opportunities while supporting the development of a competitive domestic sustainable aviation fuel industry.
