Air Canada and Airbus plan C$13.7M Canadian SAF platform

C$13.7m platform backs Canadian SAF production

Air Canada and Airbus have launched a jointly funded investment platform from Montreal that could reach C$13.7 million (€8.7 million) to finance domestic production of sustainable aviation fuel (SAF). 

The partners say the move aims to lay the foundations for a Canadian SAF industry and expand its use in corporate travel.

The mechanism is a Sustainability Co-Investment Platform. It will target a jointly selected Canadian SAF project with the objective of taking it to a final investment decision. 

Air Canada and Airbus say the platform’s full effectiveness depends on an appropriate public policy framework. The companies are already working with federal and provincial governments and are part of the Canadian Sustainable Aviation Fuel Coalition.

Valerie Durand, vice-president of airport Affairs, Corporate Real Estate and Sustainability at Air Canada, said: “Air Canada is proud to help advance aviation’s energy transition in Canada. 

Through this joint initiative with Airbus, we are taking meaningful steps toward supporting domestic SAF production, helping corporate customers address the emissions associated with business travel, and contributing to a lower-carbon path for the industry. 

With continued industry collaboration and a supportive policy environment, we are confident this momentum can accelerate,”

Separately, Airbus has committed for five years to Air Canada’s Leave Less Travel Programme. Under the agreement, Airbus will purchase the right to claim the emissions reductions associated with more than 60,000 litres of SAF for a portion of its business travel. 

Air Canada will track the emissions generated by Airbus employees’ corporate travel and retire the corresponding SAF attributes on its partner’s behalf. The mechanism is intended to stimulate demand for lower-carbon fuel and does not replace direct emissions reductions at source.

Julie Kitcher, Airbus Chief Sustainability Officer and Communications, said: “I want to thank Air Canada for this very important joint sustainability initiative. Decarbonising aviation will require deep industry collaboration and decades of investment in new sources of renewable energy. 

"By launching this co-investment platform and making a long-term commitment to Air Canada’s Leave Less Travel Programme, we will help to stimulate the production of, and demand for, SAF in Canada. The country has a vast feedstock potential. 

"When combined with a supportive policy framework, it can contribute to the sector’s decarbonisation ambitions and create significant economic growth and job creation.”

The economic stakes are significant. A study commissioned by Airbus and carried out by consultancy ICF estimates that producing enough SAF domestically to meet 40% of Canadian aviation fuel demand by 2040 could contribute C$32 billion to GDP and create 140,000 jobs across agricultural, forestry and urban sectors. 

However, the projections depend on sustained and supportive public policy. Both parties reiterated the aviation sector’s objective of reaching net-zero carbon emissions by 2050.