Investment completes feasibility funding for Azure's three Canadian projects
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- CIB investment supports Azure's front-end engineering and design study.
- Sustainable aviation fuel has the potential to reduce aviation sector emissions by up to 80 per cent.
- SAF can be used directly in aircraft engines by blending up to 50 per cent with traditional jet fuel.
TORONTO, Jan. 17, 2024 /CNW/ - The Canada Infrastructure Bank (CIB) and Azure Sustainable Fuels Corp. (Azure) are partnering on a front-end engineering and design (FEED) study for sustainable aviation fuel (SAF) production in Canada. Azure's study is now fully funded and on track to be completed in 2024.
The CIB's $8.4 million funding helps support Azure's critical path of producing SAF by 2027, which could contribute materially to helping Canada on the path towards meeting its climate goal of net zero emissions by 2050.
The CIB investment provides support for Azure to leverage Canadian skillsets and maximize options by developing three potential Canadian sites in parallel. The company has been working closely with provincial, municipal, and Indigenous governments to adhere to all environmental regulations.
SAF is considered an essential component in reducing emissions from the aviation industry and its reliance on traditional fossil-based jet fuel. The use of Azure's SAF in existing jet engines could reduce airline emissions by approximately 2.6 million tonnes of carbon dioxide per year globally – the equivalent of removing 550 000 passenger vehicles from the road. The greenhouse gas emissions reduction is driven by the use of Canadian feedstock from agricultural products such as canola and soybean oils, used to develop the SAF.
With the International Coordinating Council of Aerospace Industries Associations committing to adopt 100 per cent SAF capability by 2030 for all commercial and military aircraft, the sustainable fuel market is expected to grow significantly. As demand increases, SAF, produced by Canadian suppliers is expected to add long-term value to the agricultural sector for Canada.
The CIB's FEED initiative is part of its project Acceleration Funding developed to support energy transition projects in Canada. The CIB is working in partnership with the private sector to target energy transition projects in Canada, including carbon capture and storage, hydrogen, and clean fuels. Acceleration funding helps address the financing gap for engineering and design work, unlocking potential final investment decisions for large energy transition infrastructure.
By partnering with Azure through FEED financing, we are supporting a made-in-Canada solution to expand production of sustainable aviation fuels, leverage Canada's agricultural sector and reduce greenhouse gas emissions in the aviation sector. This is an exciting first step for the CIB and we look forward to advancing more projects such as carbon capture and storage, hydrogen, and clean fuels with our FEED financing initiative.
Ehren Cory, CEO, Canada Infrastructure Bank
Azure is pleased to be partnering with the CIB to progress our plans to provide a significant source of SAF to global markets and support the transition to a more renewable future. We look forward to continuing to advance this exciting opportunity.
Douglas Cole, CEO, Azure
Today in Manitoba, we announced a significant investment to seize global economic opportunities and help position Manitoba and Canada as leaders in the future of Sustainable Aviation Fuel production. These clean fuel projects will help create good jobs and grow the economy, all while reducing pollution on the path to net zero.
The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources
Today’s investment in Azure’s sustainable aviation fuel projects is an important development for our economy and in the fight against climate change. By investing in good jobs in growing clean industries, the Government of Canada is supporting Manitoban communities to thrive in a prosperous low-carbon future.
Ben Carr, Member of Parliament for Winnipeg South Centre
Learn More:
Canada Infrastructure Bank
Azure
Azure is a privately held corporation solely focused on developing renewable fuels production facilities to provide a significant source of SAF, which is required to meet current domestic and international mandates related to the reduction of CO2 emissions generated by the aviation sector. As a certified drop-in fuel, the use of Azure's SAF in existing jet engines will provide for a reduction of emissions by up to 80% when compared to traditional fossil-based jet fuel. To learn more, visit www.azuresf.com.
Statements of future events or conditions in this news release, including projections, targets, expectations, estimates, and business plans contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information"). Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "guidance", "should" or similar words suggesting future outcomes.
Forward-looking information in this news release includes, but is not limited to: Azure's plans to construct an SAF and related renewable products facility; references to the production of SAF, the expected timing of regulatory approvals; the Company's projections regarding expected reductions in CO2 emissions in comparison to sustainable farming practices and use of conventional fuels; the anticipated date for commencing SAF production at the facility; the Company's commitment to investing in projects that support sustainability and contribute to reducing emissions; the anticipated benefits to the Company as a result of its entry into the partnership arrangement with Bartlett and Savage and the Company's plans for transportation and management of SAF. Forward-looking information is based on Azure's current expectations, estimates, projections, and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning SAF production, energy use and greenhouse gas emissions; demand growth and energy source, supply and demand mix; the adoption and impact of new facilities and technologies; the availability and cost of locally sourced and grown feedstock; applicable laws and government policies and actions, including with respect to climate change and Aviation Climate Action Plan; that any required support from policymakers and other stakeholders for various new technologies will be provided; performance of third party service providers; the Company's ability to effectively execute on its project plans and operate the SAF facility; general market conditions; commodity prices; and capital and environmental expenditures could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, petroleum, and alternative fuel products and resulting price, differential and margin impacts; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; failure or delay of supportive policy and market development for emerging lower emission energy technologies; the competitiveness of alternative fuels and other emission reduction technologies; the receipt, in a timely manner, of regulatory and third-party approvals; availability and performance of third-party service providers; political or regulatory events, including changes in law or government policy, taxes and tax rates; geopolitical instability; acts of terrorism, war or other acts of violence or crime or risk of such activities; the effects of current and future multinational trade agreements on the level of trade among Canada, the U.S. and Mexico; sufficiency of budgeted capital expenditures in carrying out business plans; currency and interest rate fluctuations; exchange rates; risks associated with agricultural production such as weather conditions and insect populations; inflation; unanticipated technical or operational difficulties; management effectiveness and disaster response preparedness, including business continuity plans; unexpected technological developments; operational hazards and risks; cybersecurity incidents; and general economic conditions.
Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. Forward-looking information is not a guarantee of future performance and inherently involve a number of risks and uncertainties. Azure's operating and financial results may differ materially from those expressed or implied by its forward-looking information and readers are cautioned not to place undue reliance on them. Azure undertakes no obligation to update any forward-looking information contained herein, except as required by applicable law.
SOURCE Canada Infrastructure Bank
Media contacts: Canada Infrastructure Bank, [email protected]; Azure Sustainable Fuels, [email protected]
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