Canada backs CO2-to-ethylene SAF, green hydrogen projects with US$2.88 million

The Canadian government has allocated C$4 million ($2.88 million) to two Greater Toronto Area clean fuels projects targeting sustainable aviation fuel production through a direct air-to-ethylene pathway and advanced low-carbon hydrogen technology, an early-stage research push that could eventually add a new feedstock-independent SAF production route to the global supply mix.

The funding, announced Sept. 15 by Natural Resources Canada under its Energy Innovation Program Clean Fuels Call for Proposals, will be split equally between Next Hydrogen and CERT Systems each receiving C$2 million, according to a government press release.

The CERT Systems project, titled Direct Air-to-Ethylene Conversion for Sustainable Aviation Fuels, aims to advance a process that converts captured carbon dioxide into ethylene, a chemical building block for SAF production.

The Canadian government said the process could achieve an estimated 93.8% reduction in lifecycle emissions compared with conventional jet fuel, according to the press release.

The pathway is notable because it does not rely on biogenic feedstocks such as used cooking oil or animal fats, which have emerged as a key supply constraint for the dominant hydroprocessed esters and fatty acids SAF production route globally.

Hydrogen link

The second project, led by Next Hydrogen, will develop a scalable fabrication process for high-performance electrodes for the company's third-generation water electrolyser module.

The company estimates its technology can achieve emissions reductions of up to 95% compared with conventional hydrogen production through unabated steam methane reforming, when powered by low-carbon energy sources including wind, solar, nuclear, and hydro, according to the press release.

Clean hydrogen is a key input for power-to-liquids and electrofuel SAF pathways, meaning advances in electrolyser efficiency and cost could have downstream implications for next-generation SAF production economics.

The two projects are at research and development stage, and commercial deployment will depend on technical results, production costs, infrastructure buildout, fuel certification, and airline demand.

The funding represents early-stage support rather than a commitment to commercial-scale production.

The announcement comes as global SAF supply remains heavily concentrated in HEFA pathways using waste cooking oil and animal fat feedstocks, with tight feedstock availability pushing Asian UCO and processed fatty acid distillate prices to three-year highs in 2025, according to Platts data.

Alternative production routes including power-to-liquids electrofuels and CO2-derived synthetic fuels, are attracting increasing policy and investment attention as the industry seeks to diversify beyond a narrow feedstock base.

The CO2-to-ethylene route being pursued by CERT Systems represents a distinct pathway from the power-to-liquids approach being commercialized by US-based producers.