Air Canada and Airbus intend to establish a jointly funded Sustainability Co-Investment Platform to support the development of commercial-scale sustainable aviation fuel production in Canada. The companies share an objective of investing up to approximately C$13.7 million, equivalent to about US$10 million, through the platform.
The proposed initiative will initially focus on advancing a mutually selected Canadian sustainable aviation fuel project toward a final investment decision. A final investment decision generally represents the formal approval to proceed with construction and commit the capital required for a major infrastructure project.
The companies said the investment could help catalyze a broader Canadian sustainable aviation fuel ecosystem, provided supportive government policies and economic frameworks are in place. Air Canada and Airbus plan to continue working with federal and provincial governments through industry initiatives such as the Canadian Council for Sustainable Aviation Fuels.
Sustainable aviation fuel, commonly called SAF, is an alternative jet fuel produced from renewable or non-fossil feedstocks. It is chemically similar to conventional aviation fuel but can reduce greenhouse gas emissions over its full lifecycle, depending on how the fuel is produced and sourced.
Producing SAF remains more expensive than supplying conventional jet fuel in many markets. Air Canada and Airbus believe coordinated investment, public policy support and long-term customer demand will be necessary to improve production scale and price competitiveness in Canada.
The initiative also includes a five-year corporate travel agreement under Air Canada’s Leave Less Travel Program. Airbus will purchase environmental attributes associated with more than 60,000 liters of SAF for its initial allocation.
Under the program, Air Canada will calculate the greenhouse gas emissions connected to Airbus employees’ business travel and retire verified SAF environmental attributes on the company’s behalf. These attributes represent the lifecycle emissions benefits associated with qualifying sustainable aviation fuel, even when the physical fuel is not used on the specific flight taken by the participating customer.
The program is intended to help corporate customers address business travel emissions while creating additional demand for SAF. Air Canada noted that these in-sector measures complement rather than replace direct efforts to reduce emissions at their source.
The initiative also supports Air Canada’s broader fleet modernization strategy. The airline is introducing more fuel-efficient aircraft, including the Airbus A321XLR and the Canadian-built Airbus A220.
Air Canada and Airbus support the aviation industry’s aspirational goal of reaching net-zero carbon emissions by 2050. Both companies view sustainable aviation fuel as an important component of that pathway, alongside newer aircraft, operational improvements and emerging propulsion technologies.
A study prepared by Airbus and ICF estimated that producing enough domestic SAF to meet 40% of Canada’s aviation fuel demand by 2040 could contribute C$32 billion to the country’s gross domestic product. The study also estimated that the industry could support 140,000 jobs across agricultural, forestry and urban regions, although those outcomes depend on investment, policy conditions and market development.
KEY QUOTES:
“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.”
Valerie Durand, Vice President of Airport Affairs, Corporate Real Estate and Sustainability at Air Canada
“I want to thank Air Canada for this very important joint sustainability initiative. Decarbonizing 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 decarbonization ambitions and create significant economic growth and job creation.”
Julie Kitcher, Chief Sustainability Officer and Communications at Airbus
