FARNBOROUGH, England – Airbus and Air Canada announced plans Monday to establish a co-investment platform to support the development of a commercial-scale sustainable aviation fuel (SAF) industry in Canada.

The companies said at the Farnborough International Airshow that they intend to invest up to C$13.7 million (US$10 million) through the platform to help advance a Canadian SAF project toward a final investment decision.

Airbus and Air Canada said they will continue working with government partners and the Canadian Council for Sustainable Aviation Fuels to support policies intended to expand domestic SAF production.

Sustainable aviation fuel is made from renewable or non-fossil feedstocks and can reduce life-cycle greenhouse gas emissions compared with conventional jet fuel.

Because it can be used in existing aircraft and fueling infrastructure, it is considered one of the aviation industry’s primary options for reducing emissions.

The announcement coincided with the release of a study by Airbus and consulting firm ICF examining Canada’s sustainable aviation fuel production potential.

The study said producing enough SAF to meet 40% of Canada’s aviation fuel demand by 2040 could add C$32 billion to Canada’s gross domestic product and support 140,000 jobs.