Air Canada to Invest $50 Million on Sustainable Aviation Fuel

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(Credit: Air Canada)

As airlines increasingly shift towards efficiency and reductions in emissions, Air Canada is the latest to announce its own commitments. The company says it will invest $50 million in sustainable aviation fuels over the next decade to help it reach its interim GHG net reduction goals; the airline plans to realize a goal of a 20% reduction in emissions (from a 2019 baseline) by 2030, and to reach net-zero emissions throughout its global operations by 2050, the company announced today.

The airline will also evaluate the practical applications of renewable energy sources such as biogas and renewable electricity, the company says.

Despite the severe impact of the Covid-19 pandemic — the International Air Transport Association estimated in March that the crisis could wipe out around $113 billion of revenue — Air Canada remains committed to long-term sustainability, says president and CEO Michael Rousseau. Moving forward, he says, the airline will further embed climate considerations into its strategic decision-making.

Air Canada’s midterm goal was set to help the airline ensure meaningful progress toward its ultimate goal as the technology and energy sectors transition to low carbon alternatives.

According to the Air Transport Action Group, US Department of Energy and several other scientific studies, sustainable aviation fuels reduce CO2 missions by up to 80% over the fuel’s life cycle with the potential to reach 100% in the future. Today, sustainable aviation fuels are mixed directly with conventional jet fuel up to a 50/50 blend — the maximum allowed under current fuel specifications. In order to meet aviation’s commitment for reducing carbon emissions by 50% from 2005 levels by 2050, airplanes need the capability to fly on 100% sustainable aviation fuels well before 2050.

In addition to a transition to sustainable aviation fuels, one of Air Canada’s initiatives will be to continue modernizing its fleet, transitioning to planes that are expected to average about 20% less fuel consumption per seat and emit about 20% less CO2 than the aircraft they replace. The airline will increasingly deploy more efficient Boeing 737 MAX narrow-body fleets. Earlier this year, Boeing said that it is committed to ensuring that its commercial airplanes are capable of and certified to fly on 100% sustainable aviation fuels by 2030.

Environment + Energy Leader