Air Canada and Airbus are joining together to establish a jointly funded Sustainability Co-Investment Platform. According to an announcement shared with the media, this agreement represents a shared objective to invest up to approximately C$13.7 million through the platform to support a commercial-scale Sustainable Aviation Fuel (SAF) industry in Canada. Both companies are confident that, with a supportive public policy framework in place, this investment will work to influence and build up the broader Canadian SAF ecosystem.
Sustainable Aviation Fuels (SAF) is an industry term that refers to 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.
“Air Canada is proud to help advance aviation’s energy transition in Canada. Through this joint initiative with Airbus, we are taking meaningful steps toward supporting domestic SAF production, helping corporate customers address the emissions associated with business travel, and contributing to a lower-carbon path for the industry," says Valerie Durand, Vice President, Airport Affairs, Corporate Real Estate and Sustainability at Air Canada. “With continued industry collaboration and a supportive policy environment, we are confident this momentum can accelerate,”.
Both Air Canada and Airbus are committed to driving this investment and are looking forward to continuing their collaboration with government partners to establish the right structural frameworks — supporting SAF production to emerge at scale in Canada.
By aligning industry initiatives with supportive public policy mechanisms, the companies aim to 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.
“Decarbonising aviation will require deep industry collaboration and decades of investment in new sources of renewable energy. By launching this co-investment platform and making a long-term commitment to Air Canada’s Leave Less Travel Programme, we will help to stimulate the production of, and demand for, SAF in Canada, says Julie Kitcher, Airbus Chief Sustainability Officer and Communications. ”The country has a vast feedstock potential. When combined with a supportive policy framework, it can contribute to the sector’s decarbonisation ambitions and create significant economic growth and job creation.”
Multi-Billion Dollar Economic Potential
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 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 percent 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.
To learn more about SAF, visit the Air Canada SAF page or Airbus commitment to sustainable aviation fuel.
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