Canada Infrastructure Bank to provide $8.4m funding to Azure for SAF project

The Canada Infrastructure Bank (CIB) has announced to provide $8.4m funding to Azure Sustainable Fuels Corp. (Azure) for front-end engineering and design (FEED) study to help sustainable aviation fuel (SAF) production in Canada.

“By partnering with Azure through 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,” said Ehren Cory, CEO, Canada Infrastructure Bank.

Azure’s study is now fully funded and on track to be completed in 2024. The funding will help Azure achieve SAF production by 2027.

“Azure is pleased to be partnering with the CIB to progress our plans to provide a significant source of SAF to global markets and support the transition to a more renewable future. We look forward to continuing to advance this exciting opportunity,” said Douglas Cole, CEO, Azure.

The CIB investment provides support for Azure to leverage Canadian skillsets and maximize options by developing three potential Canadian sites in parallel. The company has been working closely with provincial, municipal, and Indigenous governments to adhere to all environmental regulations.

The CIB’s FEED initiative is part of its project Acceleration Funding developed to support energy transition projects in Canada.

The Manitoba-based facility will be constructed in two phases, each phase capable of producing around 10,000 barrels per day of renewable fuels with a designed total capacity per site of 20,000 barrels per day.

At full capacity, the facility will process approximately 1m tonnes of feedstock to produce approximately 1bn (265m gallons) of renewable fuels annually.

Azure is also on track to complete FEED study to develop SAF project in the US. The company plans to make a final investment decision on the project by early 2025. If approved, the facility could be operational in 2027.