Biogas and RNG: Catalysts for Sustainable Aviation Fuel in Canada
Introduction
As Canada intensifies its efforts to decarbonize the transportation sector, sustainable aviation fuel (SAF) has emerged as a critical solution for reducing greenhouse gas (GHG) emissions in aviation, a sector responsible for approximately 3% of global emissions. Among the most promising feedstocks for SAF are biogas and renewable natural gas (RNG), which offer both environmental and economic advantages. With recent federal and provincial initiatives, Canada is positioning itself to become a leader in clean aviation fuel production.
The Role of Biogas and RNG in SAF
Biogas results from the anaerobic digestion of organic materials, including agricultural waste, food waste, forestry waste and wastewater. When refined to meet pipeline standards, it is referred to as RNG, serving as a direct replacement for conventional natural gas. These gases can be transformed into SAF via thermochemical methods such as Fischer-Tropsch synthesis or gas-to-liquid (GTL) technologies, converting carbon-rich gases into liquid hydrocarbons suitable for jet engines.
SAF produced from biogas and RNG can lower lifecycle GHG emissions by as much as 80% compared to conventional jet fuel. This makes them particularly important in challenging sectors such as aviation, where electrification remains unfeasible for long-haul flights
The Economic Advantages and Investment Opportunities
economic argument for biogas and RNG in SAF production is becoming stronger. The Canadian Biogas Association reports that Canada is currently harnessing merely 13% of its biogas and RNG potential.
Budget 2024 recognized this potential by prioritizing biogas and RNG in its biofuel strategy. The federal government announced a restructured Clean Fuels Fund (CFF), which will deliver $776.3 million over four years to support biofuel projects, including SAF. Additionally, the Canada Infrastructure Bank has committed $500 million to biofuel production investments, and another $500 million will be allocated from Clean Fuel Regulations compliance payments.
These investments are anticipated to generate jobs, invigorate rural economies, and lessen reliance on imported conventional fuels. To rapidly capitalize on these benefits, Canadian stakeholders are urging for additional incentives and simplified regulatory frameworks
Environmental Impact and GHG Reduction
The environmental advantages of biogas and RNG go beyond just the aviation sector. By capturing methane, a powerful greenhouse gas from landfills, agricultural sites, and wastewater facilities, these fuels help avoid emissions that would otherwise contribute significantly to climate change. When utilized in sustainable aviation fuel (SAF) production, they provide a double benefit: replacing conventional jet fuel and addressing methane emissions right at the source.
Projects funded under Natural Resources Canada’s Energy Innovation Program (EIP) and CFF are already demonstrating these benefits. For example, a pilot project in Ontario will be converting waste water into RNG and then into SAF using a Fischer-Tropsch process. This not only reduces emissions but also supports circular economy principles by valorizing waste.
We are excited to see our technology being used to turn waste into sustainable aviation fuels. Our Pressure Swing Adsorption (PSA) technology purifies the biogas into RNG. We are thrilled to enable a circular economy. I am excited to see the capacity for SAF production increase, adding new revenue streams from waste, creating jobs, and reducing GHG emissions.
– Laurent Amram, Business Development at Ivys
Provincial Leadership and Regional Initiatives
Provinces across Canada are taking proactive steps to support biogas and RNG development :
Quebec
Quebec is home to several innovative projects, such as SÉMECS, which produces RNG from anaerobic digestion of organic waste and Ausime Énergie , currently in development.
British Columbia
British Columbia has incorporated RNG into its Low Carbon Fuel Standard and provides incentives for utilities to obtain RNG. FortisBC, for example, has pledged to boost the RNG content in its gas supply.
Alberta
Alberta is seeking ways to utilize its agricultural and forestry sectors for biogas production, in line with its overarching clean energy transition objectives.
These provincial efforts are vital for establishing a strong supply chain for SAF, encompassing everything from feedstock collection to fuel distribution. Funding and Policy Support
In addition to federal funding through the CFF and EIP, several other mechanisms are supporting the growth of biogas and RNG in SAF:
- Clean Fuel Regulations (CFR): These regulations mandate fuel suppliers to lower the carbon intensity of their products, thus fostering a market for low-carbon
- Green Municipal Fund: Managed by the Federation of Canadian Municipalities, this fund backs RNG projects at the municipal level, which encompasses landfill gas capture and upgrades to wastewater treatment.
Biogas and renewable natural gas are poised to play a transformative role in Canada’s sustainable aviation fuel landscape. With strong environmental credentials, growing economic incentives, and increasing provincial engagement, these fuels offer a viable pathway to decarbonize aviation while supporting rural development and waste reduction.
