The Manitoba government has formally inked a deal to contribute $2.9 million to a planned new sustainable aviation fuel (SAF) plant to be built near Portage la Prairie.
The province said Tuesday it has signed a contribution agreement through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to provide the funding over two years for Azure Sustainable Fuels Corp.’s front end engineering design (FEED) study.
Calgary-based Azure plans on using Canadian feedstock products, such as canola and soybean oils, to produce as much as an estimated 1 billion litres of SAF per year.
“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,” said provincial Agriculture Minister Ron Kostyshyn.
The FEED study will ensure engineering, efficiency and development needs are met prior to construction of the estimated $1.9-billion plant.
SAF is a liquid fuel currently used in commercial aviation that can reduce the aviation industry’s CO2 emissions by up to 80%. Azure Sustainable Fuels Corp. has estimated SAF could contribute to up to 65% of the reduction of emissions needed by the aviation industry to reach net-zero by 2050.
The project was originally announced back in June. The plant would be the first of its kind in Canada.
