Manitoba to contribute $2.9M to Azure’s SAF plant FEED study

The Manitoba government signed a contribution agreement through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to provide $2.9 million over two years for Azure Sustainable Fuels Corp.’s Front End Engineering Design (FEED) study for sustainable aviation fuel (SAF), federal Agriculture and Agri-Food Minister Lawrence MacAulay and Manitoba Agriculture Minister Ron Kostyshyn announced this week.

“The agriculture sector plays an important role in creating sustainable decarbonization solutions that add value to Manitoba by growing revenue and employment,” said Kostyshyn. “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 Corp. study outlines plans for using Canadian feedstock products such as canola and soybean oils to produce as much as an estimated one billion litres 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 MacAulay. “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 per cent. Azure Sustainable Fuels Corp. has estimated SAF could contribute to up to 65 per cent 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 Douglas Cole, CEO, Azure. “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, Rural Municipality (RM) of Portage la Prairie, Indigenous groups and local stakeholders to adhere to and respect all environmental regulations and requirements. The company has engaged the RM of Portage la Prairie as a location for this project.

The Sustainable Canadian Agricultural Partnership is a five-year, $3.5-billion investment by Canada’s federal, provincial and territorial governments that supports Canada’s agri-food and agri-products sectors. This includes $1 billion in federal programs and activities and a $2.5-billion commitment that is cost-shared 60 per cent federally and 40 per cent provincially-territorially for programs that are designed and delivered by provinces and territories.