ARC Bio Converts Forest Residues Into Aviation Fuel

A Canadian renewable-fuel initiative has demonstrated that forest residues processed in Port-Cartier, Quebec, can yield a kerosene-range fuel component through pilot-scale refining. ARC Bio, a joint venture between an affiliate of Bioénergie AECN and Alder Renewables, said the results advance efforts to develop sustainable aviation fuel using existing refinery infrastructure.

The trials established that carbon originating in Canadian wood residues could be traced through processing into the resulting fuel. According to ARC Bio and reporting by Le Maître Papetier on October 9, 2026, radiocarbon-14 analysis confirmed the presence of biogenic carbon in the products obtained during testing.

The demonstration produced a kerosene-range fraction that was isolated and evaluated in a blend with sustainable aviation fuel made using hydroprocessed esters and fatty acids technology, known as HEFA. According to ARC Bio, the resulting blend met the principal ASTM D1655 fuel-property specifications assessed during the trials.

The results do not amount to full qualification of the forest-based fuel pathway for commercial aviation use. Additional technical and economic work remains necessary before the process can advance toward commercial deployment.

ARC Bio director and Rémabec co-president Julien Lampron described the demonstration as a breakthrough in tracing wood-derived material through the refining process.

“It is truly a first,” Lampron said during an interview with the regional program Côte à Côte, as reported by Radio-Canada on October 13, 2026.

The process begins with pyrolysis oil produced from sawmill residues, including wood chips and fibers, at Port-Cartier. The oil undergoes cleaning and refining to remove impurities and reduce its water content before catalytic processing and hydrogen treatment convert the material into hydrocarbons suitable for fuel production.

For the pilot demonstration, the oil traveled by rail to San Antonio, Texas, where a pilot plant processed the material into an intermediate product known as Alder Renewable Crude, or ARC. The resulting biocrude was then treated in a fluid catalytic cracking unit designed to reproduce operating conditions found in commercial refineries.

“We succeeded in tracing the carbon from the tree and taking it to another level. We followed the molecule from the tree throughout the process,” Lampron said, according to Radio-Canada.

The approach could allow renewable feedstocks to enter existing refining systems rather than requiring an entirely separate refinery. ARC Bio has identified forest-industry residues and potentially low-value woody biomass from forest management and wildfire-risk reduction activities as possible feedstocks, provided suitable supply chains can be established.

The company also sees potential uses beyond aviation, including marine fuels and alternatives to the fuel oil consumed by ArcelorMittal. However, Lampron acknowledged that the renewable product could cost more than conventional kerosene, making consistent quality and reliable supply important considerations for potential customers.

The project builds on an investment announced by Boeing in May 2025. The company committed 10 million Canadian dollars to Project Avance, a collaboration involving Bioénergie AECN and Alder Renewables in Port-Cartier.

According to Le Maître Papetier, future facilities envisioned under the initiative could eventually produce approximately 10 million gallons, or 37.9 million liters, of neat sustainable aviation fuel annually. That figure represents a potential future production target, not output demonstrated during the current pilot trials.

ARC Bio plans to gather additional technical and economic data relevant to refinery operations before conducting larger-scale tests. The longer-term objective is to establish a Canadian commercial pathway linking forest-residue conversion, transportable biocrude production and processing at existing refining facilities.