Air Canada Explores Decarbonization Solutions

Air Canada and Carbon Engineering Ltd. (CE) announced a Memorandum of Understanding (MoU) to identify potential opportunities in how CE's Direct Air Capture (DAC) technology can advance aviation decarbonization. The two Canadian companies plan to explore potential cooperation activities in sustainable aviation fuels (SAF), permanent carbon dioxide removal and innovation, including opportunities for Air Canada to purchase SAF utilizing CE's technologies.

According to a press release, CE's DAC technology captures CO2 "directly out of the atmosphere" and can be used to support decarbonization in two ways:

• When combined with secure storage, it can permanently remove vast amounts of CO2 from the atmosphere, providing a tool to eliminate any CO2 emission, from any location and at any moment in time
• Through integration with CE's "AIR TO FUELS" technology, DAC can be used to produce ultra-low carbon transportation fuels, such as SAF, by combining atmospheric CO2 with clean hydrogen

"At Air Canada, we are very focused on seeking innovative, long term, sustainable emission reduction solutions as we work towards achieving our absolute midterm GHG net reduction targets by 2030 and our net zero GHG emissions goal by 2050. Our relationship with Carbon Engineering spanning three years has enabled us to learn about their emerging technology advances, SAF production and ecosystem building efforts. We are pleased to officially become the first Canadian airline to work with CE to advance new, transformational technologies towards the commercial viability of SAFs and carbon removal, two significant components to building a long-term, sustainable, global aviation industry," said Amos Kazzaz, Executive Vice President & Chief Financial Officer at Air Canada.

"Addressing emissions within the aviation industry is expected to be some of the most challenging, yet important, work in the years to come," said Steve Oldham, CEO of CE. "At CE, supporting aviation decarbonization is a key component of our commercialization plans and we're thrilled to be working with a major airline, like Air Canada, to collaborate on ways to accelerate the potential of DAC-based solutions in supporting the aviation energy transition."

As part of its climate targets to reach a goal of net-zero greenhouse gas emissions throughout its global operations by 2050, Air Canada has committed to invest in a variety of alternative fuel and carbon reduction solutions. The airline currently reports its footprint, targets and climate protection strategy through the CDP and, as of 2022, will also be reporting through the Task Force on Climate-related Financial Disclosures framework.

For more information, visit the respective web sites of Air Canada and Carbon Engineering Ltd.