They are part of the ‘Sky’s the Limit’ Challenge, which aims to stimulate the development of sustainable aviation fuel supply chains to enable the sector to achieve its targets of carbon-neutral growth by 2020 and a 50% reduction in emissions by 2050.
Under the Green Aviation Fuels Innovation Competition, four teams that develop the most innovative solutions will receive $2 million (£1.2m) to produce the “most economical and environmentally sustainable” aviation fuel and one will win a CAD$5 million (£3m) grand prize.
The Cross-Canada Flight Competition will give the first participant that uses a minimum 10% blend of made-in-Canada bio-jet fuel for a commercial flight a total of CAD$1 million (£0.6m).
Air Canada and WestJet will serve as carriers for the project.
Natural Resources Minister Amarjeet Sohi said: “This unique challenge facilitates collaborations to support a game-changing transformation of the aviation industry. A Canadian-made sustainable aviation fuel will grow our clean economy and create good, middle-class jobs for Canadian workers.”