Natural Resources Minister Jonathan Wilkinson Allocates $275 Million for Sustainable Aviation Fuel Plants

OTTAWA — Minister of Energy and Natural Resources Jonathan Wilkinson announced on Monday the distribution of $275 million in federal capital grants through the Clean Fuels Fund to finance the engineering and construction of three commercial-scale Sustainable Aviation Fuel (SAF) biorefineries in Alberta, Ontario, and British Columbia.

The commercial plants, matched by $850 million in private aerospace and energy capital from consortia including Air Canada, WestJet, and Canadian agricultural grain processors, will convert non-food agricultural canola oil, used cooking oil, and forestry wood residues into drop-in renewable aviation kerosene that reduces lifecycle aviation greenhouse gas emissions by up to 80 percent.

Decarbonizing Commercial Air Travel and Sourcing Prairie Feedstocks Commercial aviation accounts for 2.5 percent of global carbon emissions, where long-haul international passenger flights cannot practically operate on battery-electric or hydrogen propulsion over the next two decades, making drop-in low-carbon liquid fuels the sole viable decarbonization pathway.

"Canada possesses the world's most productive sustainable agriculture and forestry sectors, giving us a massive competitive advantage in producing next-generation clean fuels," Minister Jonathan Wilkinson said during an announcement at Ottawa International Airport. "By investing $275 million into domestic SAF biorefineries, we are turning Canadian canola and forestry byproducts into low-carbon jet fuel, positioning Canada as a premier exporter of green aviation fuel, and ensuring our commercial airlines can meet their international net-zero commitments."

Commercial Biorefinery Allocations Funded commercial projects include:

• Strathcona County SAF Biorefinery (Alberta): $110 million for a hydroprocessed esters and fatty acids (HEFA) facility producing 150 million litres annually of certified SAF.
• Sarnia Biochemical Complex (Ontario): $95 million for an advanced alcohol-to-jet (ATJ) conversion plant.
• Prince George Biomass-to-SAF Pilot (B.C.): $70 million for a thermochemical wood residue gasification facility.

Airline chief executives, agricultural export associations, and clean energy developers praised the federal funding, highlighting that domestic SAF production establishes a stable domestic market for Canadian prairie grain growers.