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Azure Sustainable Fuels Announces Plans to Develop Sustainable Aviation Fuel Focused Renewable Fuel Production Facility in Canada

Sustainable Aviation Fuel azure sustainable fuels
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Azure Sustainable Fuels announces plans to develop Sustainable Aviation Fuel focused renewable fuel production facility in Canada.

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.

Douglas Cole, Azure’s CEO said:

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.

“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.

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources said:

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.” 

Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank said:

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.”

Wab Kinew, Premier of Manitoba said:

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.”

Ben Carr, Member of Parliament for Winnipeg South Centre said:

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”

The Honourable Jamie Moses, Minister of Economic Development, Investment, Trade and Natural Resources, Province of Manitoba said:

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.”

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 Tk̓emlúps 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.

Kúkpi7 (Chief) Rosanne Casimir, Tk̓emlúps te Secwépemc said:

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.”

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:

Shell Catalysts & Technologies

Facility Processes Technology
Provider

  • Global leader in operational units, with technologies deployed in
    more than 400 downstream assets around the world
  • Brings key supporting partnerships, industry know-how and active
    learnings from its SAF/RD facility currently under construction in
    Pernis, Netherlands

RICHARD Design Services

Engineering, Procurement &
Construction

  • Full-service EPC firm with significant experience with renewable
    diesel, SAF and gasoline facilities
  • Brings industry leading experience having engineered, designed and
    constructed the largest Renewable Fuels Grass Roots projects
    completed and in operation in the world to date. RICHARD’s resume
    includes a combined capacity of over 100,000 barrels per day of
    renewable fuels capacity in the U.S

CN

Rail and Transportation Services

  • CN’s network connects Canada’s Eastern and Western coasts with
    the U.S. South through an 18,600-mile rail network
  • Safely transports more than 300 million tons of natural resources,
    manufactured products and finished goods

Savage

Supply Chain Infrastructure

  • Leading provider of supply chain infrastructure and solutions in over
    200 locations across North America

Bartlett

Feedstock

  • Diverse agribusiness focused on the acquisition, storage,
    transportation, processing and merchandising of grain and supplying
    all classes of wheat, food-grade corn and soybeans

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

Elise H. Nowee, President, Shell Catalysts & Technologies said:

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.”

Dean Wenner, Chief Strategy Officer, RICHARD Design Services said:

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.”

Tracy Robinson, President and Chief Executive Officer, CN said:

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.”

Jason Ray, President – Infrastructure Sector, Savage said:

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.”

Bob Knief, President, Bartlett said:

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.”

About Azure

Azure is a privately held corporation solely focused on developing renewable fuels production facilities to provide a significant source of SAF, which is required to meet current domestic and international mandates related to the reduction of CO2 emissions generated by the aviation sector.

As a certified drop-in fuel, the use of Azure’s SAF in existing jet engines will provide for a reduction of emissions by up to 80% when compared to traditional fossil-based jet fuel, providing a path for the aviation industry to significantly reduce its emissions within the next decade without the need to replace or materially alter the existing aviation fleet. To learn more, visit www.azuresf.com.

About Shell Catalysts & Technologies

Shell Catalysts & Technologies exists to provide Shell and non-Shell businesses with the tools, technologies and insights that are needed to navigate the energy transition. We are developing a wide range of solutions that offer decarbonization opportunities, including biofuels, carbon capture and hydrogen technologies.

What sets us apart is the knowledge we have gained from Shell’s corporate heritage as the operator of refineries and petrochemical plants around the world. It also gives us a unique perspective on how refiners can remain competitive. For more information, visit www.shell.com/ct.

About RICHARD

Headquartered on the USA Gulf Coast, RICHARD is a full-service engineering, procurement and construction firm known for its integrity and reliability, achieving project-wide efficiency and economies of scale for both small and large projects in the refining, renewables, chemicals and midstream industries.

Our team of 2,000+ employees have the knowledge, expertise and resources to provide a high quality, complete EPC solution delivered with safe and predictable results. We operate under the principles of honesty, integrity and safety with innovative solutions and services to assist our clients with un-matched project execution. 

About CN

CN is a world-class transportation leader and trade enabler. Essential to the economy, to the customers and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year.

CN’s network connects Canada’s Eastern and Western coasts with the U.S. South through an 18,600-mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

About Savage

Established in 1946, Savage is a privately held, global provider of supply chain infrastructure and solutions, with more than 4,000 Team Members in over 200 locations. Founded on principles of integrity, innovation, hard work and reliability, we strive to always Do the Right Thing, Find a Better Way and Make a Difference.

Our Customers and Partners count on us to safely and sustainably move and manage what is essential to their business so they can Feed the World, Power Our Lives and Sustain the Planet.

About Bartlett

Established in 1907, Bartlett joined the Savage family of companies in 2018. Its diverse agribusiness is focused on the acquisition, storage, transportation, processing and merchandising of grain, and the company is a leading U.S. exporter of grain to Mexico. Bartlett supplies all classes of wheat, feed grains, food-grade corn and soybeans to millers and processors and produces a full line of commercial patent flours.

Highlights:

  • 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

READ the latest news shaping the biofuels market at Biofuels Central

Azure Sustainable Fuels Announces Plans to Develop SAF-Focused Renewable Fuel Production Facility in Canada, CALGARY, AB, Jan. 18, 2024

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