Manitoba has signed contribution agreement to support development of a renewable transportation fuel processing facility

News release

December 19, 2023 – Winnipeg, Manitoba – Agriculture and Agri-Food Canada

The Manitoba government has signed a contribution agreement for funding through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), to provide $2.9 million over 2 years for the Azure Sustainable Fuels Corp.’s Front End Engineering Design (FEED) study for sustainable aviation fuel (SAF), federal Agriculture and Agri-Food Minister Lawrence MacAulay and Manitoba Agriculture Minister Ron Kostyshyn announced today.

The Azure Sustainable Fuels Corp. study provides plans for using Canadian feedstock products such as canola and soybean oils to produce as much as an estimated one billion litres of SAF per year. The mission of this project is to provide a made-in-Canada solution to source certified low carbon fuels to meet their emissions reduction targets.

The FEED study will ensure engineering, efficiency and development needs are met, prior to construction. SAF is a liquid fuel currently used in commercial aviation that can reduce the aviation industry’s CO2 emissions by up to 80%. Azure Sustainable Fuels Corp. has estimated that SAF could contribute to up to 65% of the reduction of emissions needed by the aviation industry to reach net-zero by 2050.

Azure is working closely with the provincial government, RM of Portage la Prairie, Indigenous groups, and local stakeholders to adhere to and respect all environmental regulations and requirements. The company has engaged the RM of Portage la Prairie as a location for this project. 


“I’m pleased to be supporting Azure with funding through the Sustainable Canadian Agricultural Partnership. Their innovative research into converting feedstock to sustainable fuel will create new economic opportunities for our farmers while helping reduce emissions.”

- The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food

“The agriculture sector plays an important role in creating sustainable decarbonization solutions that add value to Manitoba by growing revenue and employment. This cutting edge project for Manitoba farmers and oilseed processors is an opportunity to advance ongoing efforts to further Manitoba’s world-class sustainable farming practices.”

- Ron Kostyshyn, Manitoba Minister of Agriculture

"Azure is pleased to be receiving this funding from the Sustainable Canadian Agriculture partnership to support our FEED study for our proposed SAF facility in Manitoba. This funding allows Azure to move one step closer to creating a made-in-Canada solution to meet net-zero targets by utilizing Manitoba’s agriculture industry and adding value to Manitoba crops.”

- Douglas Cole, CEO, Azure Sustainable Fuels Corp.

Quick facts

  • The Sustainable Canadian Agricultural Partnership is a 5-year, $3.5-billion investment by Canada's federal, provincial and territorial governments that supports Canada's agri-food and agri-products sectors. This includes $1 billion in federal programs and activities and a $2.5 billion commitment that is cost-shared 60% federally and 40% provincially/territorially for programs that are designed and delivered by provinces and territories.

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Francis Chechile
Press Secretary
Office of the Minister of Agriculture and Agri-Food

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
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Manitoba media requests for ministerial comment, contact Communications and Stakeholder Relations: 204-451-7109.

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