Secured $40 million in funding to date, including from Natural Resources Canada's Clean Fuels Fund, Canada Infrastructure Bank and the Government of Manitoba, as to be fully-funded through the end of FEED
Completion of FEED anticipated by end of 2024, with FID in early 2025 enabling first production in 2027
Established partnerships with industry experts across the critical parts of the value chain, including Shell Catalysts & Technologies, RICHARD Design Services, CN, Savage and Bartlett
Azure Sustainable Fuels Corp. ('Azure' or the 'Company'), a leading developer in the Sustainable Aviation Fuel ('SAF') industry, continues to reach milestones in its development of a renewable fuel production facility in Canada that will produce approximately 20,000 barrels per day of predominantly SAF with first production targeted for 2027.
"Our ambition is to develop the first SAF-dedicated renewable fuel production facility of scale in Canada, by utilizing Canadian skillsets and natural resources to achieve first production in 2027," said Douglas Cole, Azure's CEO. "We have established critical partnerships with leaders in their respective industries that are required to successfully construct and operate a facility of this nature. At the same time, we have worked closely with federal, provincial and Indigenous governments to adhere to all regulations and requirements."
With the recent announcements made by Natural Resources Canada's ('NRCan') Clean Fuels Fund, the Canada Infrastructure Bank ('CIB') and the Government of Manitoba's Sustainable Agriculture Fund, Azure is now fully-funded through the completion of the Front End Engineering and Design ('FEED') stage.
"Yesterday in Manitoba, we announced a significant investment to seize global economic opportunities and help position Manitoba and Canada as leaders in the future of sustainable aviation fuel production. These clean fuel projects will help create good jobs and grow the economy, all while reducing pollution on the path to net zero."
- The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources
"By partnering with Azure through our FEED financing, we are supporting a made-in-Canada solution to expand production of sustainable aviation fuels, leverage Canada's agricultural sector and reduce greenhouse gas emissions in the aviation sector. This is an exciting first step for the CIB, and we look forward to advancing more projects such as carbon capture and storage, hydrogen and clean fuels with our FEED financing initiative."
- Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank
"With innovators like Azure and support from Minister Wilkinson and his government, there is so much opportunity for Manitoba to be a leader in the low-carbon economy. Our province is ready to foster exciting, new technologies that leverage Manitoba's thriving agricultural sector and position our province as a hub for cutting-edge development in the sustainable aviation fuel space."
- Wab Kinew, Premier of Manitoba
"Yesterday's investment in Azure's sustainable aviation fuel projects is an important development for our economy and in the fight against climate change. By investing in good jobs in growing clean industries, the Government of Canada is supporting Manitoban communities to thrive in a prosperous low-carbon future"
- Ben Carr, Member of Parliament for Winnipeg South Centre
"The province of Manitoba is proud to support the biotechnology industry in Manitoba, and this investment reflects our support for all levels of government working together to find solutions to the environmental challenges we are facing. Innovative projects such as this will create the highly skilled jobs needed for the economy of tomorrow."
- The Honourable Jamie Moses, Minister of Economic Development, Investment, Trade and Natural Resources, Province of Manitoba
Indigenous Partnerships
Azure is committed to building meaningful, long-term, mutually beneficial relationships with Indigenous communities based on respect and understanding. As such, Azure has partnered with Tk?emlúps te Secwépemc in British Columbia to co-develop a facility on their ancestral lands and continues to advance discussions with local Indigenous groups in Manitoba and Ontario.
"We are exploring the co-development of a project that provides economic benefits, jobs and environmental leadership to our community, while respecting and honouring our traditions, our laws, our culture and our land for present and future generations. This project aligns with Indigenous laws of protecting our land, air and water by reducing carbon emissions in an industry that is a major creator of carbon emissions. Tk'emlúps looks forward to being a part of the decarbonization solution for Canada."
- Kúkpi7 (Chief) Rosanne Casimir, Tk?emlúps te Secwépemc
Partnerships With Industry Leaders Across the Value Chain
Azure has secured strategic partnerships with a network of respected companies spanning all the critical elements of the facility and the value chain, including:
Azure has engaged in numerous conversations with end users of SAF, including some of the largest potential customers in the Canadian market, and continues to advance discussions to secure offtake agreements for additional product from the facility.
Renewable Fuel Facility Overview and Upcoming Milestones
Azure has sought to maximize optionality by pursuing a multi-site strategy through developing three Canadian SAF-focused renewable fuels production facility sites in parallel. These potential sites are located in British Columbia, Manitoba and Ontario. The Company expects that all FEED work for each of the three sites will be complete by the end of 2024, positioning Azure to reach a Final Investment Decision ('FID') in the first half of 2025 as to enable an in-service date in 2027.
Benefits of SAF to Reduce Impacts of Climate Change
SAF is considered an essential component in reducing emissions in Canadian and global aviation, providing a renewable alternative that can reduce emissions by up to 80% relative to the fossil-based jet fuels that the aviation industry is currently reliant upon. SAF is a certified drop-in replacement fuel for commercial airlines and is already in use today across the globe. The incremental of supply of SAF from Azure's 20,000 barrel per day facility would reduce global aviation emissions by approximately 2.6 million tonnes per year, equivalent to removing the emissions from approximately 550,000 cars.
Quotes From Partners
"Shell Catalysts & Technologies is committed to working with our customers to help guide them through the energy transition. We are lending our many years of experience in refining to support Azure's goals of developing a Canadian domiciled SAF facility. Azure selected the Shell Renewable Refining Process (SRRP) technology for its flexibility in design to produce high yields of renewable diesel or SAF. Shell continues to invest strongly in technology development for the energy transition and decarbonisation."
- Elise H. Nowee, President, Shell Catalysts & Technologies
"RICHARD has a long-standing history of designing large scale projects in North America. RICHARD has completed the design and construction efforts associated with the successful start-up of numerous renewable distillates facilities. Our extensive and valuable industrial experience in regards to pretreatment, hydroprocessing, railcar loading /unloading, power distribution, modular design electrical buildings, modular unit designs and associated OSBL needs results from our well rounded and comprehensive services delivered by great people. RICHARD is excited to lend its expertise in the renewable fuels space to support Azure's projects."
- Dean Wenner, Chief Strategy Officer, RICHARD Design Services
"We are proud to partner with Azure in support of the transition to a low carbon future. Our unique network will enable Azure to reach key markets and customers of sustainable aviation fuel."
- Tracy Robinson, President and Chief Executive Officer, CN
"We're pleased to partner with Azure to build a solution for the domestic supply of sustainable aviation fuel in Canada, part of our ongoing efforts to optimize North American supply chains for renewable transportation fuels. As a leader in rail infrastructure design, construction and operations, as well as rail transloading and rail logistics, Savage is uniquely positioned to ensure efficient, sustainable and safe operations for the tank, track and rail facilities associated with Azure's projects."
- Jason Ray, President – Infrastructure Sector, Savage
"With over 116 years of experience in agriculture, Bartlett has built strong Customer relationships all along the supply chain. We're excited to support the development of Azure's projects and provide the bridge between the agricultural community and energy markets, utilizing our extensive grain handling and processing network across North America."
- Bob Knief, President, Bartlett