The companies intend to invest up to approximately C$13.7 million, equivalent to US$10 million, through the platform. The investment will target the development of a domestic sustainable aviation fuel, or SAF, industry.
A key objective will be to advance a jointly selected Canadian SAF project towards a final investment decision. Air Canada and Airbus said the investment could support the wider Canadian SAF market if accompanied by an appropriate public policy framework.
The companies will continue working with federal and provincial governments to establish structures that support large-scale SAF production. Their policy engagement also includes participation in the Canadian Sustainable Aviation Fuel Coalition.
The collaboration aims to align private investment with public policy mechanisms that improve domestic fuel production and price competitiveness. It also seeks to increase the availability of renewable aviation fuels while maintaining the affordability of air travel. B2Btravel news
Valerie Durand, Vice President of Airport Affairs, Corporate Real Estate and Sustainability at Air Canada, said: “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. With continued industry collaboration and a supportive policy environment, we are confident this momentum can accelerate,”.
Julie Kitcher, Airbus Chief Sustainability Officer and Communications, said: “I want to thank Air Canada for this very important joint sustainability initiative. 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. 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.”
Alongside the proposed investment platform, the initiative will allow corporate partners to support Canadian SAF demand through Air Canada’s Leave Less Travel Program.
Airbus has signed a five-year agreement to participate in the programme. Under its initial allocation, the aircraft manufacturer will purchase verified environmental attributes associated with more than 60,000 litres of SAF.
Air Canada will track the greenhouse gas emissions linked to Airbus employees’ corporate travel. It will then retire the corresponding verified SAF environmental attributes on the company’s behalf.
The partners noted that in-sector emissions reductions do not replace direct reductions at the source. However, the programme is intended to stimulate SAF demand and reduce the life-cycle emissions associated with participating companies’ business travel.
The use of renewable aviation fuels forms part of Air Canada’s wider fleet modernisation programme. The airline is introducing more fuel-efficient aircraft, including the long-range Airbus A321XLR and the Canadian-built Airbus A220.
Air Canada and Airbus support the aviation sector’s aspirational objective of reaching net-zero carbon emissions by 2050. The target has also been adopted by the International Air Transport Association, the Air Transport Action Group and the International Civil Aviation Organization, with SAF identified as an important component of the transition. Seatravel booking
The companies also referred to a macroeconomic study commissioned by Airbus and prepared with ICF. The research examined Canada’s potential to develop a domestic aircraft biofuels industry.
According to the study, producing enough SAF domestically to meet 40% of Canada’s aviation fuel demand by 2040 could contribute C$32 billion to national gross domestic product. It could also support the creation of 140,000 jobs across agricultural, forestry and urban areas.
The proposed co-investment platform is intended to provide an initial mechanism for corporate funding and project support. It will operate alongside wider industry and government efforts to establish domestic SAF production capacity.
Sustainable aviation fuel is an industry term covering a family of alternative synthetic aviation fuels. These fuels are produced from renewable feedstocks rather than fossil resources.
SAF has chemical properties similar to conventional aviation fuel and can be used as a lower-carbon alternative when emissions are measured across the complete fuel life cycle.
Air Canada is Canada’s largest airline and national flag carrier. It is also a founding member of Star Alliance and is headquartered in Montréal.
The airline operates scheduled services to more than 180 airports across Canada, the United States and international markets on six continents. It holds a four-star airline ranking from Skytrax.
Its Aeroplan loyalty programme has more than 10 million members worldwide. Members can earn and redeem points through a network covering more than 50 airline partners, as well as hotel, car rental and merchandise companies.
Through Air Canada Vacations, the company provides holiday and flight-and-hotel packages, tours, cruises, car rentals and travel experiences. Air Canada Cargo supplies freight capacity and connectivity to destinations across six continents through the airline’s passenger and freighter fleet. B2Btravel news
Air Canada’s climate-related commitments include a long-term aspirational objective to achieve net-zero greenhouse gas emissions by 2050
Tags: Julie Kitcher, Airbus Valerie Durand, Air Canada
