Air Canada and Carbon Engineering Ltd. (CE) today announced a Memorandum of Understanding ("MoU") to identify potential opportunities in how CE's proprietary Direct Air Capture (DAC) technology, which captures carbon dioxide (CO₂) from the atmosphere, can advance aviation decarbonization. The two Canadian companies plan to explore potential cooperation activities in sustainable aviation fuels (SAF), permanent carbon dioxide removal and innovation, including opportunities for Air Canada to purchase SAF utilizing CE's technologies.

CE's DAC technology captures CO₂ directly out of the atmosphere and can be used to support decarbonization in two significant and complementary ways:

1. When combined with secure geologic storage, it can permanently remove vast amounts of CO₂ from the atmosphere, providing a tool to eliminate any CO₂ emission, from any location and at any moment in time.
2. Additionally, through integration with CE's AIR TO FUELS^™ technology, DAC can be used to produce ultra-low carbon transportation fuels, such as SAF, by combining atmospheric CO₂ with clean hydrogen.

"At Air Canada, we are very focused on seeking innovative, long term, sustainable emission reduction solutions as we work towards achieving our absolute midterm GHG net reduction targets by 2030 and our net zero GHG emissions goal by 2050. Our relationship with Carbon Engineering spanning three years has enabled us to learn about their emerging technology advances, SAF production and ecosystem building efforts. We are pleased to officially become the first Canadian airline to work with CE to advance new, transformational technologies towards the commercial viability of SAFs and carbon removal, two significant components to building a long-term, sustainable, global aviation industry," said Amos Kazzaz, Executive Vice President & Chief Financial Officer at Air Canada.

"Addressing emissions within the aviation industry is expected to be some of the most challenging, yet important, work in the years to come," said Steve Oldham, CEO of CE. "The good news is that feasible, affordable and scalable solutions, like CE's DAC and AIR TO FUELS^TM technologies, are available and capable of making a meaningful impact in meeting critical net zero targets. At CE, supporting aviation decarbonization is a key component of our commercialization plans and we're thrilled to be working with a major airline, like Air Canada, to collaborate on ways to accelerate the potential of DAC-based solutions in supporting the aviation energy transition."

As part of its climate targets to reach a goal of net-zero greenhouse gas emissions throughout its global operations by 2050, Air Canada has committed to invest in a variety of alternative fuel and carbon reduction solutions. Air Canada currently reports its carbon footprint, targets and climate protection strategy through the CDP and, as of 2022, will also be reporting through the Task Force on Climate-related Financial Disclosures framework. Additional information about Air Canada's Environmental Social Governance activities is discussed in the airline's Corporate Sustainability Report, Citizens of the World.