• Carbon Engineering, a Canadian direct air capture (DAC) and air-to-fuel (ATF) startup, has announced a Memorandum of Understanding (MoU) with Air Canada, to identify potential opportunities in aviation decarbonization.

• The two partners plan to explore potential cooperation activities in sustainable aviation fuels (SAF) and permanent carbon dioxide removal, including opportunities for Air Canada to purchase SAF from Carbon Engineering.

<ul><li> Analyst QuickTake: Carbon Engineering seems to be actively pursuing its ATF business. The company revealed plans for its first ATF facility in October. The facility will be built on a 100-acre land 25 km outside of Merritt, British Columbia, and is expected to begin construction in 2023 with operations targeted to commence in 2026. Overall, the SAF space has seen some major developments this year. Just last month, Twelve produced its first batch of SAF from CO2 emissions. Earlier this year, Prometheus Fuels entered into an agreement with American Airlines to supply 10 million gallons of carbon-neutral jet fuel, while LanzaTech ​announced ​the world’s first commercial-scale ethanol-to-jet fuel production facility in South Wales.</ul>