New SAF initiative in Canada. Photo: Shutterstock Air Canada and Airbus have announced plans to jointly invest up to C$13.7 million (US$10 million) to help accelerate the development of a commercial-scale Sustainable Aviation Fuel (SAF) industry in Canada.
The two companies said they intend to establish a Sustainability Co-Investment Platform aimed at supporting domestic SAF production and advancing a jointly selected Canadian SAF project toward a Final Investment Decision (FID). The initiative is designed to strengthen Canada's aviation decarbonization efforts while helping build a competitive renewable fuel ecosystem.
Air Canada and Airbus said the success of the initiative will depend on continued collaboration with federal and provincial governments to establish supportive policies that encourage SAF production at scale and maintain affordable air travel.
The announcement also expands Air Canada's Leave Less Travel Program, which allows corporate customers to support the use of sustainable aviation fuel. Airbus has signed a five-year agreement under the program and will purchase SAF environmental attributes linked to more than 60,000 liters of fuel to offset emissions associated with employee business travel.
Sustainable aviation fuel is considered one of the aviation industry's key tools in achieving its goal of net-zero carbon emissions by 2050. Air Canada noted that SAF complements its ongoing fleet modernization efforts, which include newer, more fuel-efficient aircraft such as the Airbus A321XLR and the Canadian-built Airbus A220.
The companies also highlighted the broader economic benefits of developing a domestic SAF sector. According to a new study commissioned by Airbus and conducted by ICF, meeting 40% of Canada's aviation fuel demand with SAF by 2040 could contribute C$32 billion to the country's GDP and support approximately 140,000 jobs.
Air Canada and Airbus said they hope the new investment platform will act as a catalyst for additional industry participation and accelerate Canada's transition toward a more sustainable aviation future.