Governments of Canada and Manitoba Provide $2.9 Million over Two Years to Advance Manitoba as a Leader in Renewable Transportation Fuels

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June 22, 2023

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(Agriculture and Agri-Food Canada) Funding of design study for sustainable aviation fuel manufacturing facility supports local agriculture, sustainable decarbonization: Bibeau, Stefanson -- The Canada and Manitoba governments are committed to enhancing the province’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 Portage la Prairie, the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food and Premier Heather Stefanson, announced today.

The facility’s construction is anticipated to cost approximately $1.9 billion and will produce an estimated 1 billion litres per year of SAF, primarily using Canadian feedstock products such as canola and soybean oils. With Canada 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.

Today’s announcement ensures Manitoba is contributing to a low-carbon future while also benefitting Manitoba’s agricultural producers. The feedstock demands of the fuel manufacturing facility create a secure, local market for Manitoba farmers and oilseed producers and an opportunity to advance ongoing efforts to further Manitoba’s already world-class sustainable farming practices.

Azure is working closely with all 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.

Quotes

“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

“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 de-carbonization solution while creating more good jobs.”

- Heather Stefanson, Premier of Manitoba

“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 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 good jobs, new revenue and optimism.”

- Derek Johnson, Manitoba Minister of Agriculture

"We are honored 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 of Azure

Quick facts

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, this roughly equates to the emissions of 556,749 passenger vehicles driven. 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 de-carbonization goals, the Premier noted.
The Sustainable Canadian Agricultural Partnership is a 5-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% federally and 40% provincially/territorially for programs that are designed and delivered by provinces and territories. READ MORE

Canada funds FEED study for planned sustainable aviation fuel plant in Manitoba (Biobased Diesel Daily)

Canada provides FEED funding for proposed SAF facility (SAF Magazine)