FINANCIAL PARTNER

A NETWORK FOR GREEN AVIATION IN CANADA

Sylvain Cofsky, Executive DirectorIATA Alternative Fuel Symposium

November 16th, 2017, Vancouver, Canada

#2 in business aircraft production

In a country comparison, Canada ranked* in the top three in

terms of civil airplanes, helicopters, engines and flight simulators

#1

#3

#3

Civil flight simulation

Civil aircraft production

Civil engine production

#3 in regional aircraft production

#3 in helicopter production

#4 in large jet production

#1 in turboprop engine production #1 in helicopter engine production

#4 in turbofan engine production

#4 in general aviation** production

State of Canada’s Aerospace Industry 2017 Report

Key findings

• The Canadian aerospace industry contributed close to $28 billion in

GDP and 208,000 jobs to the Canadian economy

• Canada maintained its global leadership position in civil airplanes,

helicopters, engines and flight simulators

• Canadian aerospace manufacturing demonstrated innovation leadership

by:

Being the number one manufacturing R&D player

Outpacing the manufacturing average in terms of use of all four

types of innovation practices: product, process, organizational,

and marketing innovation

Collaborating significantly more with industry, academia and

government than the Canadian manufacturing industry average

Increasing its employment of skilled workers significantly more

than the manufacturing average to introduce innovation

State of Canada’s Aerospace Industry 2017 Report

Stock Check

2056 for titanium

2092 for aluminum

2049 no more oil

from fossil fuels as we

know them today*

Earth is a closed system

It’s not only about Carbon

5 tons CO2eq/person

0 tons CO2eq/person

2 tons CO2eq/person

2070

2050

2030

2015

20 tons CO2eq/person (Canada)

Paris Agreement

10 tons CO2eq/person (Global Average)

2015

Aerospace Emissions Reduction Roadmap

56 bT CO2eq of total

estimated emissions

between 2015-2050

24 bT CO2eq of

total estimated emissions

between 2015-2050

It’s

Getting

Loud!

Mitigation of environmental issues of Aviation

Minimizing

the Output

More and more Regulations and Environmental

targets!

2030 Agenda for Sustainable Development

Why is this Important for Canada ?

• Canada is a world aerospace leader and Green Aviation drives

innovation and collaboration efforts…

• … Canada’s aerospace industry is positioned to enable green

economic development, creating a license for continued sector

growth and leadership…

• … Canada has a natural advantage in developing renewable aviation

fuels: an engaged government seeking to reduce emissions, airline

environmental leadership, sustainable agriculture and forestry

biomass production sectors, established R&D capacity.

GARDN Proprietary Information 14

Description of GARDN

GARDN | 2017 Corporate Presentation 15

• GARDN is part of the Canadian program “Business-Led Network of Centres of Excellence” (BL-NCE).– GARDN I (2009-2014)

– GARDN II (2014-2019)

• Objective: Increase competitiveness of Canada’s aerospace industry through the reduction of its environmental footprint

• Two-pillar strategy:– Evaluating, Funding and Monitoring precompetitive collaborative industrial R&D

projects (TRL 3 to 6)

– Focal point of reflection on environmental aviation in Canada and Worldwide

GARDN | Spotlight on Innovation & Clean Technology Roundtable Panel 2017 16

Vision:

GARDN in a permanent contributor to the preservation of our environment while securing Canada’s

leadership role in aerospace.

Mission:

GARDN will foster the continuous development of technologies and processes for QUIET, CLEAN, and

SUSTAINABLE air transport by:

1. Encouraging creativity, collaboration and investment

2. Ensuring that companies address the environmental impact of their products and services along

the entire life cycle

A Canadian Aerospace success story:

• An inclusive coast to coast network (Airlines / OEM / SMEs / Universities / Research Centers /

Governement)

• A world-wide reknown brand

• With a Robust Selection and Project Monitoring Process (a strong Scientific Committee)

• And glad to see NRCAN joining the effort with this great initiative!

Vision and Success

Research Themes

GARDN | 2017 Corporate Presentation 17

Q U I E T

• Aircraft noise

(airframe, landing

gear)

• Engine noise

(propeller,

turbomachinery)

• Cabin noise

C L E A N

• Aircraft design and

optimization to

reduce fuel burn and

climate change

• Adanced engine and

combustor concepts

to reduce fuel burn,

Nox and particulate

matter

• Alternative fuels

• Optimized navigation

and avionics

S U S TA I N A B L E

• Product end-of-life

• Green

manufacturing and

MRO

• Materials of concern

• Recycling / Reuse of

parts

Budget

GARDN | 2017 Corporate Presentation 18

GARDN I (2009-2014)

Budget = $42 million

• Industry contribution: 70%

• Government (BL-NCE): 30%

GARDN II (renewed for 2014-2019)

Minimum = +$25 million

• Including $12 million, coming from the Canadian Government, through the BL-NCE program, with the mandate to support green aviation projects includingbiofuel

Members, Contributors and Participants

GARDN | Spotlight on Innovation & Clean Technology Roundtable Panel 2017 19

Research Portfolio

GARDN | 2017 Corporative Presentation 20

A total value of more than $70M:

37 collaborative projects, including 5 biofuel projects

18 are completed

18 are in progress

1 is stopped

Project Evaluation Criteria

Eligibility Criteria

• Funding from industry (50% of project cost)

• Minimum of 2 collaborators (including an industrial leader)

• TRL progression (from 3 to 6)

• Linked to one of GARDN research themes: Clean, Quiet, Sustainable

Evaluation Criteria

• Benefits to the Canadian aerospace sector

• Development of highly qualified personnel

• Environment impact

• Feasibility, collaboration, quality of researchers

GARDN | 2017 Corporate Presentation 21

AGR-1: Evaluation of Bio-SPK Production from a

New Canadian Feedstock Crop, Carinata

ObjectivesQualify an alternative and sustainable fuel source; reduce impact of fuel cost on

aviation industry through reduction of feedstock and processing cost; expedite and

promote commercialization of Canadian biojet fuel source, namely Carinata.

Agrisoma worked in collaboration with NRC and Applied Research Associates (ARA) to

conduct world’s first flight on 100% drop-in aviation biofuel using NRC’s Falcon 20

aircraft.

Partner

22

Term: 2 years

23

Term: 2 years

NEC-21: Assessment of likely Technology Maturation pathways

used to produce biojet from forest residues (The ATM Project)

Term: 3 years

Objective:

Advance the development and production of biojet fuels in Canada from sustainable

biomass feedstocks.

The project will assess the potential of producing biojet from Canada’s considerable forest

residue resources, using the experience of Canada’s established forest products sector and

the growing pellet sector.

24

WG-21: Canada’s Biojet Supply Chain Initiative:

Enabling 2020 Carbon Neutral Growth

Term: 3 years

Objective:

Demonstrate the operational feasibility of biojet fuels in the domestic jet fuel supply system,

catalyze the development of the domestic biojet sector by using HEFA biojet, validate CND

biojet supply chain elements, and generate hands-on experience with biojet handling and

integration to develop best practices in a Canadian context.

25

WG-22: Civil Aviation Alternate Fuel Contrail and Emissions

Research (CAAFCER)

Term: 2 years

Objective:

Enhance the T33 emissions instrumentation by the addition of a CPC 3776

ultra-fine aerosol sensor and denuder to differentiate between volatile and

non-volatile particles, and then undertake jet emissions and contrail

measurement flights.

26

In Conclusion

A lot of work needs to be done on the technical aspect (targeting

specific bottlenecks in the value chain

– ASTM certification

– Upgraders /

– Feedstock certification / …

… But do not forget to work on the Ecosystem itself:

– Need to work with the whole biofuel supply chain + the aerospace industry

(including Airlines)

– Need to articulate the differente government initiatives

– Need to have a customer oriented (airlines) approach

– Need to have a kind of a « first client » program (IDEAS program / DND)

– Need to align with ICAO activities (CAEP, CORSIA)

GARDN | 2017 Corporate Presentation 27

Green Aviation Research & Development Network

740, Notre-Dame Street West, suite 1515

Montreal, QC H3C 3X6

www.gardn.org | sylvain.cofsky@gardn.org

Thank you! Merci!