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Manitoba Signs Contribution Agreement for New SAF Plant

The Manitoba government has formally inked a deal to contribute $2.9 million to a planned new sustainable aviation fuel (SAF) plant to be built near Portage la Prairie. 

The province said Tuesday it has signed a contribution agreement through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to provide the funding over two years for Azure Sustainable Fuels Corp.’s front end engineering design (FEED) study. 

Calgary-based Azure plans on using Canadian feedstock products, such as canola and soybean oils, to produce as much as an estimated 1 billion litres of SAF per year.  

“This is a cutting-edge project for Manitoba farmers and oilseed processors. It is an opportunity to advance ongoing efforts to further Manitoba’s world-class sustainable farming practices,” said provincial Agriculture Minister Ron Kostyshyn. 

The FEED study will ensure engineering, efficiency and development needs are met prior to construction of the estimated $1.9-billion plant. 

SAF is a liquid fuel currently used in commercial aviation that can reduce the aviation industry’s CO2 emissions by up to 80%. Azure Sustainable Fuels Corp. has estimated SAF could contribute to up to 65% of the reduction of emissions needed by the aviation industry to reach net-zero by 2050. 

The project was originally announced back in June. The plant would be the first of its kind in Canada. 

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