Azure Sustainable Fuels Announces Plans to Develop SAF-Focused Renewable Fuel Production Facility in Canada

• Secured $40 million in funding to date, including from Natural Resources Canada's Clean Fuels Fund, Canada Infrastructure Bank and the Government of Manitoba, as to be fully-funded through the end of FEED
• Completion of FEED anticipated by end of 2024, with FID in early 2025 enabling first production in 2027
• Established partnerships with industry experts across the critical parts of the value chain, including Shell Catalysts & Technologies, RICHARD Design Services, CN, Savage and Bartlett

CALGARY, AB, Jan. 18, 2024 /PRNewswire/ - Azure Sustainable Fuels Corp. ('Azure' or the 'Company'), a leading developer in the Sustainable Aviation Fuel ('SAF') industry, continues to reach milestones in its development of a renewable fuel production facility in Canada that will produce approximately 20,000 barrels per day of predominantly SAF with first production targeted for 2027.

"Our ambition is to develop the first SAF-dedicated renewable fuel production facility of scale in Canada, by utilizing Canadian skillsets and natural resources to achieve first production in 2027," said Douglas Cole, Azure's CEO. "We have established critical partnerships with leaders in their respective industries that are required to successfully construct and operate a facility of this nature. At the same time, we have worked closely with federal, provincial and Indigenous governments to adhere to all regulations and requirements."

With the recent announcements made by Natural Resources Canada's ('NRCan') Clean Fuels Fund, the Canada Infrastructure Bank ('CIB') and the Government of Manitoba's Sustainable Agriculture Fund, Azure is now fully-funded through the completion of the Front End Engineering and Design ('FEED') stage.

"Yesterday in Manitoba, we announced a significant investment to seize global economic opportunities and help position Manitoba and Canada as leaders in the future of sustainable aviation fuel production. These clean fuel projects will help create good jobs and grow the economy, all while reducing pollution on the path to net zero." 

- The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources

"By partnering with Azure through our FEED financing, we are supporting a made-in-Canada solution to expand production of sustainable aviation fuels, leverage Canada's agricultural sector and reduce greenhouse gas emissions in the aviation sector. This is an exciting first step for the CIB, and we look forward to advancing more projects such as carbon capture and storage, hydrogen and clean fuels with our FEED financing initiative."

- Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank

"With innovators like Azure and support from Minister Wilkinson and his government, there is so much opportunity for Manitoba to be a leader in the low-carbon economy. Our province is ready to foster exciting, new technologies that leverage Manitoba's thriving agricultural sector and position our province as a hub for cutting-edge development in the sustainable aviation fuel space."

- Wab Kinew, Premier of Manitoba

"Yesterday's investment in Azure's sustainable aviation fuel projects is an important development for our economy and in the fight against climate change. By investing in good jobs in growing clean industries, the Government of Canada is supporting Manitoban communities to thrive in a prosperous low-carbon future"

- Ben Carr, Member of Parliament for Winnipeg South Centre

"The province of Manitoba is proud to support the biotechnology industry in Manitoba, and this investment reflects our support for all levels of government working together to find solutions to the environmental challenges we are facing. Innovative projects such as this will create the highly skilled jobs needed for the economy of tomorrow."

- The Honourable Jamie Moses, Minister of Economic Development, Investment, Trade and Natural Resources, Province of Manitoba

Azure is committed to building meaningful, long-term, mutually beneficial relationships with Indigenous communities based on respect and understanding. As such, Azure has partnered with Tk̓emlúps te Secwépemc in British Columbia to co-develop a facility on their ancestral lands and continues to advance discussions with local Indigenous groups in Manitoba and Ontario.

"We are exploring the co-development of a project that provides economic benefits, jobs and environmental leadership to our community, while respecting and honouring our traditions, our laws, our culture and our land for present and future generations. This project aligns with Indigenous laws of protecting our land, air and water by reducing carbon emissions in an industry that is a major creator of carbon emissions. Tk'emlúps looks forward to being a part of the decarbonization solution for Canada."

- Kúkpi7 (Chief) Rosanne Casimir, Tk̓emlúps te Secwépemc

Azure has secured strategic partnerships with a network of respected companies spanning all the critical elements of the facility and the value chain, including:

Azure has engaged in numerous conversations with end users of SAF, including some of the largest potential customers in the Canadian market, and continues to advance discussions to secure offtake agreements for additional product from the facility.

Azure has sought to maximize optionality by pursuing a multi-site strategy through developing three Canadian SAF-focused renewable fuels production facility sites in parallel. These potential sites are located in British Columbia, Manitoba and Ontario. The Company expects that all FEED work for each of the three sites will be complete by the end of 2024, positioning Azure to reach a Final Investment Decision ('FID') in the first half of 2025 as to enable an in-service date in 2027.

SAF is considered an essential component in reducing emissions in Canadian and global aviation, providing a renewable alternative that can reduce emissions by up to 80% relative to the fossil-based jet fuels that the aviation industry is currently reliant upon. SAF is a certified drop-in replacement fuel for commercial airlines and is already in use today across the globe. The incremental of supply of SAF from Azure's 20,000 barrel per day facility would reduce global aviation emissions by approximately 2.6 million tonnes per year, equivalent to removing the emissions from approximately 550,000 cars.

"Shell Catalysts & Technologies is committed to working with our customers to help guide them through the energy transition. We are lending our many years of experience in refining to support Azure's goals of developing a Canadian domiciled SAF facility. Azure selected the Shell Renewable Refining Process (SRRP) technology for its flexibility in design to produce high yields of renewable diesel or SAF. Shell continues to invest strongly in technology development for the energy transition and decarbonisation."

- Elise H. Nowee, President, Shell Catalysts & Technologies

"RICHARD has a long-standing history of designing large scale projects in North America. RICHARD has completed the design and construction efforts associated with the successful start-up of numerous renewable distillates facilities. Our extensive and valuable industrial experience in regards to pretreatment, hydroprocessing, railcar loading /unloading, power distribution, modular design electrical buildings, modular unit designs and associated OSBL needs results from our well rounded and comprehensive services delivered by great people. RICHARD is excited to lend its expertise in the renewable fuels space to support Azure's projects."

- Dean Wenner, Chief Strategy Officer, RICHARD Design Services

"We are proud to partner with Azure in support of the transition to a low carbon future. Our unique network will enable Azure to reach key markets and customers of sustainable aviation fuel."

- Tracy Robinson, President and Chief Executive Officer, CN

"We're pleased to partner with Azure to build a solution for the domestic supply of sustainable aviation fuel in Canada, part of our ongoing efforts to optimize North American supply chains for renewable transportation fuels. As a leader in rail infrastructure design, construction and operations, as well as rail transloading and rail logistics, Savage is uniquely positioned to ensure efficient, sustainable and safe operations for the tank, track and rail facilities associated with Azure's projects."

- Jason Ray, President – Infrastructure Sector, Savage

"With over 116 years of experience in agriculture, Bartlett has built strong Customer relationships all along the supply chain. We're excited to support the development of Azure's projects and provide the bridge between the agricultural community and energy markets, utilizing our extensive grain handling and processing network across North America."

- Bob Knief, President, Bartlett

Azure is a privately held corporation solely focused on developing renewable fuels production facilities to provide a significant source of SAF, which is required to meet current domestic and international mandates related to the reduction of CO₂ emissions generated by the aviation sector. As a certified drop-in fuel, the use of Azure's SAF in existing jet engines will provide for a reduction of emissions by up to 80% when compared to traditional fossil-based jet fuel, providing a path for the aviation industry to significantly reduce its emissions within the next decade without the need to replace or materially alter the existing aviation fleet. To learn more, visit www.azuresf.com.

Shell Catalysts & Technologies exists to provide Shell and non-Shell businesses with the tools, technologies and insights that are needed to navigate the energy transition. We are developing a wide range of solutions that offer decarbonization opportunities, including biofuels, carbon capture and hydrogen technologies. What sets us apart is the knowledge we have gained from Shell's corporate heritage as the operator of refineries and petrochemical plants around the world. It also gives us a unique perspective on how refiners can remain competitive. For more information, visit www.shell.com/ct.

Headquartered on the USA Gulf Coast, RICHARD is a full-service engineering, procurement and construction firm known for its integrity and reliability, achieving project-wide efficiency and economies of scale for both small and large projects in the refining, renewables, chemicals and midstream industries. Our team of 2,000+ employees have the knowledge, expertise and resources to provide a high quality, complete EPC solution delivered with safe and predictable results. We operate under the principles of honesty, integrity and safety with innovative solutions and services to assist our clients with un-matched project execution. 

CN is a world-class transportation leader and trade enabler. Essential to the economy, to the customers and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year. CN's network connects Canada's Eastern and Western coasts with the U.S. South through an 18,600-mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

Established in 1946, Savage is a privately held, global provider of supply chain infrastructure and solutions, with more than 4,000 Team Members in over 200 locations. Founded on principles of integrity, innovation, hard work and reliability, we strive to always Do the Right Thing, Find a Better Way and Make a Difference. Our Customers and Partners count on us to safely and sustainably move and manage what is essential to their business so they can Feed the World, Power Our Lives and Sustain the Planet.

Established in 1907, Bartlett joined the Savage family of companies in 2018. Its diverse agribusiness is focused on the acquisition, storage, transportation, processing and merchandising of grain, and the company is a leading U.S. exporter of grain to Mexico. Bartlett supplies all classes of wheat, feed grains, food-grade corn and soybeans to millers and processors and produces a full line of commercial patent flours.

Statements of future events or conditions in this new release, including projections, targets, expectations, estimates, and business plans contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information"). Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "guidance", "should" or similar words suggesting future outcomes.

Forward-looking information in this news release includes, but is not limited to: Azure's plans to construct an SAF and related renewable products facility; references to the production of SAF, the expected timing of regulatory approvals; the Company's projections regarding expected reductions in CO₂ emissions in comparison to sustainable farming practices and use of conventional fuels; the anticipated date for commencing SAF production at the facility; the Company's commitment to investing in projects that support sustainability and contribute to reducing emissions; the anticipated benefits to the Company as a result of its entry into the partnership arrangement with Bartlett and Savage and the Company's plans for transportation and management of SAF. Forward-looking information is based on Azure's current expectations, estimates, projections, and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning SAF production, energy use and greenhouse gas emissions; demand growth and energy source, supply and demand mix; the adoption and impact of new facilities and technologies; the availability and cost of locally sourced and grown feedstock; applicable laws and government policies and actions, including with respect to climate change and Aviation Climate Action Plan; that any required support from policymakers and other stakeholders for various new technologies will be provided; performance of third party service providers; the Company's ability to effectively execute on its project plans and operate the SAF facility; general market conditions; commodity prices; and capital and environmental expenditures could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, petroleum, and alternative fuel products and resulting price, differential and margin impacts; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; failure or delay of supportive policy and market development for emerging lower emission energy technologies; the competitiveness of alternative fuels and other emission reduction technologies; the receipt, in a timely manner, of regulatory and third-party approvals; availability and performance of third-party service providers; political or regulatory events, including changes in law or government policy, taxes and tax rates; geopolitical instability; acts of terrorism, war or other acts of violence or crime or risk of such activities; the effects of current and future multinational trade agreements on the level of trade among Canada, the U.S. and Mexico; sufficiency of budgeted capital expenditures in carrying out business plans; currency and interest rate fluctuations; exchange rates; risks associated with agricultural production such as weather conditions and insect populations; inflation; unanticipated technical or operational difficulties; management effectiveness and disaster response preparedness, including business continuity plans; unexpected technological developments; operational hazards and risks; cybersecurity incidents; and general economic conditions.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. Forward-looking information is not a guarantee of future performance and inherently involve a number of risks and uncertainties. Azure's operating and financial results may differ materially from those expressed or implied by its forward-looking information and readers are cautioned not to place undue reliance on them. Azure undertakes no obligation to update any forward-looking information contained herein, except as required by applicable law.

SOURCE Azure Sustainable Fuels Corp.’