The two partners intend to establish a jointly funded Sustainability Co-Investment Platform. This agreement states a shared objective to invest up to approximately C$13.7 million (US$10 million), through the platform to support a commercial-scale Sustainable Aviation Fuel (SAF) industry in Canada.
Follow Aeronews on Facebook, Twitter, LinkedIn and TikTok
Both companies are confident that, with a supportive public policy framework in place, this investment can serve as a catalyst for the broader Canadian SAF ecosystem.
Key focus areas include accelerating a jointly agreed Canadian SAF project toward a Final Investment Decision (FID). While Air Canada and Airbus intend to drive this investment, both companies look forward to continuing their constructive collaboration with government partners to establish the right structural frameworks to support SAF production to emerge at scale in Canada. Their ongoing joint advocacy alongside the Canadian Council for Sustainable Aviation Fuels (C-SAF) reflects a shared commitment to working with federal and provincial governments. By aligning industry initiatives with supportive public policy mechanisms, they can successfully champion domestic SAF production and price competitiveness, with the objective to make renewable fuels available for the Canadian aerospace industry and to preserve affordability of air travel.
Beyond the reduction of life cycle emissions, developing a robust domestic SAF ecosystem could trigger a massive ripple effect across the Canadian economy. The strategic platform arrives alongside a new macroeconomic study by Airbus and ICF highlighting Canada’s significant potential to lead in aircraft biofuels production.
The study reveals that scaling domestic SAF to meet 40% of Canada’s aviation fuel demand by 2040 could add $32 billion to the national GDP and create 140,000 jobs across agricultural, forestry, and urban regions. By establishing a solid platform for corporate investment and support, the Air Canada and Airbus partnership serves as an immediate catalyst to support these multi-billion-dollar economic returns while advancing the development of a domestic SAF ecosystem. Consult the full report on the Airbus website.
Sustainable Aviation Fuels (SAF) are industry terms used to reference a family of alternative synthetic aviation fuels. It is a type of non-conventional jet fuel made from resources that can be regenerated, also known as renewable feedstocks. It is chemically similar to conventional aviation fuel but comes from non-fossil sources, making it a lower-carbon alternative over the complete fuel life cycle.