Air Canada announced that it has signed an agreement with sustainable fuel producer Neste to purchase 77.6 million liters (20.5 million gallons) of sustainable aviation fuel (SAF). The airline said that the purchase will help it further pursue its efforts to reduce its carbon footprint and further its commitment to sustainability goals.

Michael Rousseau, President and Chief Executive Officer at Air Canada, said:

“Air Canada is actively pursuing efforts to mitigate its greenhouse gas emissions and SAF is a critical component of our multifaceted approach to reducing our impact on the environment and promoting environmental sustainability in our operations. This SAF purchase from Neste contributes significantly to our target of procuring SAF for one per cent of our estimated jet fuel use in 2025.”

Air Canada’s sustainability goals, announced by the company in 2021, include a commitment to achieve net-zero greenhouse gas emissions (GHG) throughout its global operations by 2050, along with interim targets to achieve 20% GHG net reductions from flights plus 30% GHG net reductions from ground operations by 2030. The airline has also pledged to invest $50 million in SAF and carbon reductions and removals.

Finland-based Neste makes a variety of sustainable fuels, including SAF, produced from 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste. Research is ongoing on using other materials for SAF, including algae, municipal solid waste, and lignocellulosics, among other things. According to Neste, when used in its neat, or unblended, form, its Neste MY Sustainable Aviation Fuel reduces greenhouse gas emissions over its lifecycle by up to 80% compared to fossil jet fuel use.

Carl Nyberg, Executive Vice President at Neste, said:

“We are proud to expand our partnership with Air Canada by supplying them with a large volume of Neste MY Sustainable Aviation Fuel for use at Vancouver Airport. It is the first time our SAF is supplied to Canada. It underlines our commitment to supporting the Canadian aviation industry in its efforts to mitigate emissions and also shows the important role that policy support can play in accelerating SAF usage. We look forward to continuing our excellent collaboration with Air Canada.”

Neste will deliver the neat SAF purchased in a blended form to the Vancouver marine terminal starting in December, with further shipments throughout 2025. This purchase represents Air Canada’s first commercial import of SAF into Canada. Air Canada CEO Rousseau said that while the purchase was an important one for the airline, domestic sources for SAF are needed.

“While Air Canada and the Canadian aviation industry will continue to depend on imported SAF, SAF must also become available at scale in Canada to achieve our long-term aspirational goal of net-zero greenhouse gas emissions by 2050,” Rousseau said, adding that “this is why we at Air Canada are asking federal and provincial governments to play a role and support the development of a competitive SAF industry and production market in Canada.”