Renewable aviation fuel plant in Portage will be Canada’s first

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This article was published 20/06/2023 (900 days ago), so information in it may no longer be current.

A new, $1.9 billion sustainable aviation fuel processing plant is in the works for Portage la Prairie with plans to draw from the region’s abundance of canola and soy beans to power its operations.

On Tuesday, Azure Sustainable Fuels Corp. announced its intent to build a renewable fuel processing plant near the southwestern Manitoba city.

The proposed facility will be located approximately nine kilometres west of Portage la Prairie, adjacent to the Poplar Bluff Industrial Park and will process vegetable oils, including canola and soy bean oils, into aviation fuel.

It is to be the first of its kind in Canada.

“Portage la Prairie’s strategic location offers us several advantages for establishment of a sustainable aviation fuel, or SAF, facility. Manitoba has a rich agriculture sector and provides abundant biomass resources,” Azure Sustainable Fuels chief executive officer Douglas Cole told a news conference in Portage.

The provincial and federal governments are providing Azure with $2.9 million over two years to conduct a front-end engineering design study.

Pending regulatory approval, construction is slated to begin in 2025 and the facility could produce its first barrels of fuel around 2027.

“Manitoba is well-positioned for companies like Azure to power the world’s drive to lower carbon emissions and to create net zero energy markets,” Premier Heather Stefanson said at the announcement.

The proposed plant is anticipated to have a $2 billion impact on Manitoba’s economy and is expected to create 150 direct jobs. It will also support 1,500 jobs through the construction, Stefanson said.

Farmers will also benefit, with Azure sourcing oils directly from local farming communities and adding value to their crops, she said.

Rural Municipality of Portage la Prairie Reeve Kam Blight said the community is excited to embark on the next phase of the project after working with Azure since early 2022.

“This project reflects our foundational vision to support and elevate the agricultural industry in our region,” Blight said.

According to the province, the facility is estimated to produce one billion litres of SAF per year, and the process used by Azure to produce the fuel will reduce carbon emissions by approximately 2.6 million tonnes annually.

Sustainable fuel powered 450,000 flights in 2021, and the product is considered integral to helping Canada meet domestic and international emissions mandates, Azure said.

The fuel can be mixed with traditional jet fuel and used in standard aircraft engines without modification. Air Canada and Westjet are among the airlines currently using it in their fleets.

Similar production facilities exist in California, Finland and Singapore.

— With files from Tyler Searle

danielle.dasilva@freepress.mb.ca