SAF Procurement Details and Implications
Air Canada’s agreement with Neste to procure nearly 78 million litres of Neste MY Sustainable Aviation Fuel™ is a landmark in its carbon reduction initiatives. Equivalent to approximately 20.5 million U.S. gallons, this SAF purchase aligns with Air Canada’s aim to replace 1% of its jet fuel usage with SAF by 2025. Neste, a leading SAF producer, will deliver the fuel in blended form to Vancouver International Airport, with shipments beginning in December 2024 and continuing throughout 2025.
This SAF volume is approximately equal to the conventional jet fuel used on 1,197 Vancouver-Montreal round-trip flights in a fully booked Boeing 787-9 Dreamliner at a 50% SAF blend. This significant acquisition supports Air Canada’s multifaceted approach to reducing greenhouse gas emissions, as SAF provides up to an 80% reduction in lifecycle emissions compared to traditional jet fuel.
Comments from Air Canada and Neste Leadership
Michael Rousseau, Air Canada’s President and CEO, highlighted that “SAF is a crucial component of our efforts to mitigate greenhouse gas emissions, and this purchase significantly contributes to our 2025 goal.” He further underscored the need for SAF production in Canada, stating, “While Air Canada and the Canadian aviation industry will continue to rely on imported SAF, establishing a domestic SAF industry is essential for meeting Canada’s long-term decarbonization objectives.”
Carl Nyberg, Neste’s Executive Vice President, emphasized Neste’s commitment to supporting the Canadian aviation industry, stating, “We are proud to expand our partnership with Air Canada and look forward to continued collaboration as we supply our SAF to Canada for the first time.” Nyberg also noted the importance of policy support to make SAF usage cost-competitive and accelerate its adoption.
“While Air Canada and the Canadian aviation industry will continue to rely on imported SAF, establishing a domestic SAF industry is essential for meeting Canada’s long-term decarbonization objectives.” – Michael Rousseau
The Need for Canadian SAF Production
Air Canada’s SAF acquisition also brings attention to the limited global SAF supply. The International Air Transport Association (IATA) has reported that even with a tripling of SAF production, SAF would still only meet 0.53% of global jet fuel demand in 2024. For Canada to meet its long-term environmental goals, Air Canada and other stakeholders are urging government support to foster a competitive Canadian SAF production market. The airline is advocating for policies that leverage Canada’s renewable feedstocks, advanced refining infrastructure, and technical expertise to create a resilient, cost-effective SAF supply chain.
By advocating for a domestic SAF industry, Air Canada hopes to advance its commitment to sustainable aviation and reduce its reliance on imported SAF. As part of this effort, the airline continues to encourage its corporate and cargo clients to purchase environmental attributes through its “Leave Less” program, supporting sustainability goals across various sectors.
About Neste SAF
Neste’s SAF is a renewable fuel made from waste materials such as used cooking oil and animal fat, offering up to 80% lower lifecycle greenhouse gas emissions compared to fossil-based jet fuel. Certified for commercial use, Neste’s SAF can be blended with up to 50% conventional jet fuel and is compatible with existing aircraft and fueling infrastructure.
