Governments to fund study to turn crops into aviation fuel

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This article was published 19/12/2023 (686 days ago), so information in it may no longer be current.

A plan to convert Manitoba-grown crops to aviation fuel is taking off, the provincial government announced Tuesday.

The federal and provincial governments will spend $2.9 million on a study to turn feedstock products, such as canola and soybean oils, to airplane fuel.

It’s the next step in Azure Sustainable Fuels Corp.’s goal to create a crop-conversion plant in Portage la Prairie.

“The upfront costs are significant,” said Douglas Cole, chief executive of the private company.

He called the study “absolutely essential” to build a sustainable aviation fuel plant.

About two years ago, Azure approached Portage’s elected officials with the idea for a facility, said the municipality’s reeve.

The company has visions of outputting one billion litres of fuel annually, which would require the production of roughly two million tonnes of canola seed.

Cole said a year-long study on engineering and efficiency needs is necessary before a final investment decision can be made in late 2024 or early 2025.

Construction may take two years, with fuel production beginning in 2027, Cole outlined.

He declined to give an estimated cost of the project but said such endeavours land “in the billion-dollar range.”

“There is certainly a large market for this,” Cole said Tuesday. “I do see a domestic market. I also see a potential for exports.”

Sustainable aviation fuel is used for commercial flights. It reduces carbon dioxide emissions by up to 80 per cent, according to the International Air Transport Association. Earlier this year, Virgin Atlantic landed its first long-haul flight using just sustainable aviation fuel.

Almost anything that burns jet fuel can use the biofuel, Cole stated.

Fossil fuels go into the cycle of crop production and sustainable fuel creation, he noted.

“We have to look… (at) the full life cycle — cradle to grave — for what the carbon intensity, what the lifecycle emissions of this process are,” Cole continued.

Still, sustainable aviation fuel will greatly contribute to the aviation industry reducing its carbon output, he added.

In 2019, Canadian air operators released enough greenhouse gases to roughly equate to driving 4.8 million cars for a year.

Canada’s current aviation climate action plan has a goal of 10 per cent sustainable aviation fuel use by 2030.

Cole estimated the need for 1,500 construction jobs on Azure’s proposed facility, and another 150 people for operations once it’s running.

“I think it’s extremely exciting, not only for our region, but for the entire province and country.”– Portage la Prairie Reeve Kam Blight

“I think it’s extremely exciting — not only for our region, but for the entire province and country,” said Portage la Prairie Reeve Kam Blight.

He said the area has a “capable workforce” for the job. People commute from Winnipeg and neighbouring communities for their roles at Simplot and Roquette, potato and pea protein processing plants, he noted — the new site could draw a similar crew.

Azure’s facility will be “an excellent boon for the agricultural community,” Blight expressed, adding crops will likely be needed from across the province.

“I’m confident that Manitoba growers can meet that market,” Cole said.

Last year, Manitoba accounted for 16 per cent of total canola production in Canada, Canola Council of Canada data show. Saskatchewan covered the bulk, or 52 per cent.

Manitoba’s economic development and agriculture ministers applauded Azure’s goals.

“We need added value opportunities with the raw agricultural products we grow in this province,” said Agriculture Minister Ron Kostyshyn.

The $2.9 million, to be given over two years, comes from the Sustainable Canadian Agricultural Partnership. It’s a fund combining money from the federal, provincial and territorial governments.

Cole previously led True North Renewable Fuels, a renewable diesel project. The company sold to Federated Co-operatives Ltd. in 2021.

Azure is partnered with a Swiss-based family office, according to its website.

Construction on the proposed facility will likely begin in 2025, Cole said. The fuel creation process Azure is eyeing has been used in Europe over the last decade, the company’s website states.

Azure expects to displace approximately 2.6 mega tonnes of carbon dioxide per year.

gabrielle.piche@winnipegfreepress.com