Boeing Backs $10M Quebec SAF Project to Fly by 2027

Alder Renewables, Boeing Canada, and Bioénergie AE Côte-Nord (AECN) have launched Project Avance, a strategic partnership to produce sustainable aviation fuel (SAF) from sawmill residues in Port-Cartier, Québec. Boeing is contributing CAD $10 million (US $7.2 million) to the project. Production is expected to begin in 2027. At full scale, the project is forecasted to enable future Québec facilities to produce 10 million gallons (approximately 37,854,000 liters) of unblended SAF annually, using forest residues that would otherwise go to waste.

>> In Other News: CPCFA Adopts Initial Resolution Supporting Up to $1.1 Billion of Tax-Exempt Financing for Aemetis Projects

What Is Project Avance?

Project Avance is a SAF production initiative designed to convert certified sustainable forest residues into low-carbon jet fuel using infrastructure that already exists in Québec. The project will be located at Arbec Lumber's integrated plant in Port-Cartier, which already produces renewable fuel oil and biochar. That existing setup lowers both capital costs and deployment risk.

The feedstock is sawmill residue, the wood waste left over after lumber processing. It is abundant, sustainably certified, and otherwise underutilized. Channeling it into a SAF supply chain is precisely the kind of practical, scalable approach North America needs to meet its growing demand for advanced biofuels.

The project will demonstrate the entire pathway from certified sustainable forest residuals into low-carbon Alder Renewable Crude (ARC), which will then be refined into SAF and other low-carbon transportation fuels.

>> RELATED: ESAF Takes Flight: Power-to-Liquid Tech Sparks 48% Growth

How Does Alder Renewables Convert Wood Waste into Jet Fuel?

Alder Renewables uses a proprietary process called Alder Renewable Crude (ARC). The process starts with pyrolysis, the thermal breakdown of biomass at high heat in the absence of oxygen. The resulting pyrolysis oil is then upgraded through Alder's patented, low-capital separation process into ARC, a stable, refinery-ready biocrude intermediate.

That ARC can be hydrotreated into SAF or co-processed in existing refinery fluid catalytic cracking (FCC) units to produce a range of low-carbon fuels. The key advantage is infrastructure compatibility. ARC works with refineries that already exist, eliminating the need for purpose-built facilities and dramatically reducing the time and cost to commercial-scale production.

For Project Avance, the pyrolysis oil comes from the existing Bioénergie AECN plant. Alder upgrades it into ARC on-site. The ARC is then refined into SAF, capable of cutting lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel, per Alder Renewables. A pilot campaign under Project Avance has already met performance targets, confirming that the technology is advancing not only scientifically but operationally toward commercial deployment.

Why Is Boeing Investing CAD $10 Million in a Québec Forestry SAF Project?

Boeing's CAD $10 million investment is part of its Industrial and Technological Benefits (ITB) commitment to Canada, tied specifically to Canada's November 2023 decision to purchase 16 Boeing P-8A Poseidon maritime patrol aircraft. ITB obligations require companies winning major Canadian government procurement contracts to reinvest an equivalent value into Canada's economy through local innovation and industrial partnerships.

The $10 million for Project Avance is part of a larger CAD $17.48 million Boeing SAF investment package announced May 28, 2025. The second portion, CAD $7.48 million, goes to Dimensional Energy in Richmond, British Columbia, for a power-to-liquid technology project. Both are part of Boeing's over CAD $280 million commitment to Canadian clean technology through the P-8 ITB program.

The investments also reflect Boeing's broader decarbonization strategy. Airlines and aerospace manufacturers are racing to secure scalable SAF supply as regulatory pressure and corporate sustainability commitments intensify. Backing a project that converts Québec's forest byproducts into jet fuel using existing infrastructure gives Boeing a direct stake in a credible, cost-competitive SAF pathway.

What Role Does Bioénergie AECN Play?

Bioénergie AE Côte-Nord is a joint venture between sawmill operator Arbec Forest Products and integrated forestry operations company Groupe Rémabec. The company already operates a plant in Port-Cartier that produces renewable fuel oil and biochar from certified sustainable forest and sawmill residuals. For Project Avance, AECN's existing bio-oil production is the feedstock that Alder upgrades into ARC.

The practical significance is hard to overstate. There is no greenfield development required. AECN's bio-oil production line is already running. Alder's ARC process layers onto the existing operation. That approach eliminates major capital expenditure, reduces project risk, and shortens the path to commercial SAF output.

How Does Project Avance Support Canada's 2030 SAF Target?

Canada's Aviation Climate Action Plan (2022–2030) sets an aspirational target of 10% SAF use across all aviation fuel consumed domestically by 2030. The Canadian Energy Regulator projects jet fuel demand in Canada will reach approximately 10.6 billion liters by 2030. Hitting the 10% target means producing more than 1 billion liters of SAF domestically, per the Canadian Council for Sustainable Aviation Fuels (C-SAF), which represents more than 110 member organizations including Air Canada, WestJet, and Bombardier.

Canada currently has virtually no commercial SAF supply. The gap between current SAF reality and the 2030 target remains enormous, even as global production climbs. Projects like Avance represent critical domestic infrastructure, and Québec's active lumber sector gives it a structural feedstock advantage that few regions in North America can match.

At full scale, Project Avance is forecasted to enable future Québec facilities to produce 10 million gallons (approximately 37,854,000 liters) of unblended SAF annually. The same up-to-80% lifecycle emission reduction applies, making the fuel eligible for CORSIA compliance pathways that become mandatory for international aviation in 2027, the same year Project Avance targets first production.

Project Element	Verified Detail
Project Name	Project Avance
Location	Port-Cartier, Québec, Canada
Partners	Alder Renewables, Boeing Canada, Bioénergie AECN (JV: Arbec Forest Products + Groupe Rémabec)
Feedstock	Certified sustainable sawmill residues (bio-oil from existing AECN plant)
Technology	Alder Renewable Crude (ARC) process; pyrolysis oil upgrading then hydrotreating into SAF
Boeing Investment	CAD $10 million (US $7.2 million), part of total CAD $17.48 million Boeing Canadian SAF package
ITB Program Context	Tied to Canada's purchase of 16 P-8A Poseidon aircraft; part of CAD $280M+ Boeing P-8 ITB investment
Production Start (Target)	2027
Annual SAF Potential	10 million gallons (approximately 37,854,000 liters) of unblended SAF at full scale
Emission Reduction	Up to 80% vs. conventional jet fuel (lifecycle basis)
Canada 2030 SAF Target	1 billion liters (10% of projected national jet fuel consumption of ~10.6 billion liters)

What Comes Next for Project Avance?

Project Avance is designed as both a production facility and an innovation hub for SAF development, testing, and certification. The partners say it will offer testing and certification capabilities for other renewable fuel technologies, helping establish Québec as a leader in sustainable aviation solutions across Canada.

Alder, Boeing, and Bioénergie AECN are currently working with both the federal government and the Government of Québec to secure additional funding and policy support. The Canadian government has already signaled backing: Minister of Industry Mélanie Joly stated that Boeing's investments in Québec and British Columbia will generate high-value jobs and support Canada's goal of reducing aviation emissions.

Demand for next-generation SAF made from non-food biomass is growing rapidly, and Québec's boreal forests and active lumber sector give it a structural supply advantage few regions can match. Forest residue feedstocks do not compete with food production and require no new land use, making them a strong long-term foundation for a scalable SAF supply chain.

As North American SAF production continues to scale, Project Avance gives Canada a credible, shovel-ready contribution to the continental supply base, with 2027 as the target for first production and the potential to enable 10 million gallons of annual output at full scale.

Frequently Asked Questions

What is Alder Renewable Crude (ARC)?

ARC is Alder Renewables' patented biocrude product. It is produced by upgrading pyrolysis oil through a proprietary low-capital separation process, resulting in a stable, refinery-compatible intermediate. ARC can be hydrotreated into SAF or co-processed in existing refinery fluid catalytic cracking (FCC) units to produce a range of low-carbon fuels including SAF, diesel, and marine fuel.

How much SAF can Project Avance produce?

Project Avance is forecasted to enable future Québec projects to produce 10 million gallons (approximately 37,854,000 liters) of unblended SAF annually at full scale. Production is expected to begin in 2027, per the project announcement and multiple industry sources.

Why does Canada need projects like this to meet its 2030 SAF goal?

Canada's Aviation Climate Action Plan calls for 1 billion liters of SAF by 2030, which represents 10% of the Canadian Energy Regulator's projected 10.6 billion liter jet fuel demand that year. Canada currently has virtually no commercial SAF production. Projects built on existing forestry and pyrolysis infrastructure, like Project Avance, are among the fastest and most cost-effective ways to start closing that gap before the 2030 deadline.