Air Canada is taking a major step toward cleaner air travel thanks to its latest investment in clean energy.
The airline signed an agreement with Finland-based sustainable fuel producer Neste to purchase 20.5 million gallons of sustainable aviation fuel (SAF), according to ESG Today. In 2021, Air Canada announced its sustainability goals, including a commitment to achieve net-zero planet-warming gas pollution by 2050 and a pledge of $50 million in SAF and carbon reductions and removals.
"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," Michael Rousseau, president and chief executive officer at Air Canada, said in a statement to the outlet.
Neste generates its SAF from 100% renewable waste and residue raw materials, like used cooking oil and animal fat waste. According to the company, when used in its unblended form, its SAF reduces gas pollution over its lifecycle by 80% compared to traditional dirty energy sources.
According to the U.S. Department of Energy, aviation accounts for 12% of all carbon pollution from transportation through traditional jet fuel. SAF could potentially reduce pollution by 94%, depending on how it's used.
Currently, the cost of SAF is high, but the DOE released a report last November about the positive environmental impacts of using SAF and the importance of state and federal investments in the programs. As of now, there are tax credits for SAF producers of at least $1.25 per gallon when they meet certain requirements.
Other airlines are making similar changes to their fuel plans, with United Airlines and Neste working together through the end of 2024 to use one million gallons of fuel for flights out of Chicago's O'Hare International Airport, one of the busiest in the country. And in California, Delta, United, and JetBlue have all signed on with the California Air Resources Board and Airlines for America to scale up production and use of SAF.
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