The race is on to make flying cleaner

In addition to adding oat milk and Aperol Spritzes to their in-flight menu, Air Canada is making moves to add more sustainable aviation fuel (SAF).

Driving the news: The nation’s largest airline entered an agreement with SAF producer Air Company to use its unique “power-to-liquid" aviation fuel.

• Unlike most SAFs which blend regular jet fuel with biomasses like vegetable oil or animal, Air Company’s fuel is made without fossil fuels using green hydrogen and captured C02.
   
• Earlier this year, Air Canada also bought 9.5 million litres of SAF from Neste, the current market leader in biomass-based jet fuels. 

Zoom out: Dozens of companies around the world are currently competing to devise the greenest, most viable jet fuel—using everything from corn to rabbit poop in their elixirs.

• Around 499,000 commercial flights flew globally on some blend of SAF as of mid-2023, per the Centre for Aviation. 

Why it matters: Aviation only accounts for a bit more than 2% of human-caused emissions, but is expected to be one of the most difficult sectors to decarbonize.

• SAFs are able to cut emissions by up to 90% in some cases, making them a promising technology for greening air travel. 

Yes, but: Widespread adoption of SAFs is still up in the air as there is doubt they can be cost-effectively mass-produced. 

• Right now, biomass-based SAFs cost anywhere between two-to-four times as much to make as traditional fuel. Power-to-liquid fuels are even pricier. 

Bottom line: The race is on to figure out a way to make flying cleaner. At last month's Paris Air Show, Canada announced a $350 million investment to accelerate the industry’s transition, including a focus on alternative fuels.—QH