Funding of Design Study for Sustainable Aviation Fuel Manufacturing Facility Supports Local Agriculture, Sustainable Decarbonization: Stefanson, Bibeau
The governments of Canada and Manitoba are committed to enhancing Manitoba’s competitive advantages in leading-edge, value-added agricultural processing to support the development of renewable transportation fuel processing in Canada.
This new industry will position Manitoba as a hub for innovation and green, low-carbon technologies. The Canada and Manitoba governments are providing $2.9 million over two years to support Azure Sustainable Fuels Corp.’s Front End Engineering Design (FEED) study for a planned sustainable aviation fuel (SAF) processing facility near Port
age la Prairie, Manitoba Premier Heather Stefanson and the Honourable Marie-Claude Bibeau, federal Minister of Agriculture and Agri-Food announced today.
The facility’s construction is anticipated to cost approximately $1.9 billion and to produce an estimated one billion litres per year of SAF, primarily using Canadian feedstock products such as canola and soybean oils. With Canada’s and Manitoba’s support, the Azure project will create 1,500 construction jobs and approximately 150 direct permanent, highly specialized jobs once in production. The construction of the Azure facility is projected to have a total impact on the Manitoba economy of $2 billion. The first year of operations is expected to create more than $500 million in economic output and sustain hundreds of jobs throughout Manitoba.
Through the use of the SAF process for the Azure facility, approximately 2.6 million tonnes of CO2 emissions will be reduced on an annual basis, equalling the emissions of 556,749 passenger vehicles. Manitoba’s sustainable farming practices, with continued advancements, create further opportunities for increased environmental benefits. This will have a significant global impact on the aviation industry and decarbonization goals, the premier noted.
Today’s announcement ensures Manitoba is contributing to a low-carbon future while also benefiting agricultural producers. The feedstock demands of the fuel manufacturing facility will create a secure, local market for Manitoba farmers and oilseed producers and an opportunity to advance ongoing efforts to further Manitoba’s world-class sustainable farming practices.
Azure is working closely with stakeholders, including Indigenous communities and the Rural Municipality of Portage la Prairie, to adhere to and respect all environmental regulations and requirements, the premier said.
“Manitoba is well-positioned for companies like Azure to power the world’s drive to a lower-emissions future and create beyond net-zero energy markets. Our goal in supporting Azure is to have Manitoba recognized globally as a leader in successfully integrating agriculture with energy markets to provide a sustainable decarbonization solution while creating more good jobs.” — Manitoba Premier Heather Stefanson
“The agriculture sector can play an important role in reducing emissions and helping Canada to meet its climate targets. The Azure facility will help harness the power of sustainable energy while growing economic opportunities and contributing to Canada’s 2030 Emissions Reduction Plan.” — The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
“The establishment of a sustainable aviation fuel facility would bring an exciting development for Portage la Prairie and a significant gain for the economic vibrancy of this region. The creation of this new processing facility would also add to the momentum in the Portage la Prairie area, which has seen strong investment in business development and housing since 2017. I thank and congratulate Azure for this project, which is poised to add value to Manitoba crops and benefit farmers as well as this area of our province through local employment, new revenue and optimism.” — Manitoba Agriculture Minister Derek Johnson
“We are honoured to receive funding from the Sustainable Canadian Agricultural Partnership. The support from Canada and Manitoba validates our vision to create a ‘Made-in-Canada’ solution to reduce carbon emissions globally by utilizing local feedstocks and Canadian skillsets. This support not only accelerates economic growth within the province, but also successfully integrates Canadian agriculture with energy markets to provide a sustainable decarbonization solution.” — Douglas Cole, CEO, Azure
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.