Eskasoni Mi’kmaq First Nation and Cape Breton cleantech company Aeon Blue have signed a joint venture agreement to develop a sustainable aviation fuel project at Sydport in Cape Breton.

They announced Thursday they have established eFuels Mi’kmaq Ltd., which will be the first clean fuels company in Canada majority-owned by a Mi’kmaq First Nation.

The venture will begin with a $4 million pilot facility on Eskasoni land at Sydport. Cape Breton-based Eskasoni, which is the world’s largest Mi’kmaq community, is investing $1.5 million in the project.

The facility will use Aeon Blue’s seawater electrochemical technology to produce sustainable aviation fuel, while also capturing carbon dioxide from the atmosphere. The process will also produce ultrapure water and an oxidizer that can be used in rocket fuel.

“This partnership represents a significant economic opportunity for Eskasoni First Nation,” said Eskasoni Corporate CEO Steve Parsons in a statement. “It has the potential to support long-term economic growth, create new opportunities for community members, and strengthen Eskasoni’s participation in Canada’s growing clean energy economy.”

Aeon Blue – which was named Startup Venture of the Year at the Canadian Cleantech Awards in May – says its technology combines wind energy, seawater and captured carbon dioxide to produce synthetic fuels. The company is developing an integrated system that combines hydrogen production and carbon capture with the production of e-fuels.

The pilot facility is expected to initially produce 1,200 litres of AeonAir sustainable aviation fuel annually. The partners plan to scale production to 3.7 million litres per year over five years.

The venture is expected to create up to 80 full-time jobs as the facility expands. The jobs are expected to be available to members of Eskasoni, other Mi’kmaq communities and the broader region.

Community members will also be enrolled in an internship program providing training in engineering, operations and management.

Leroy Denny, chief of Eskasoni Mi’kmaq First Nation, said the project would combine the community’s approach to environmental stewardship with economic development.

The project comes as governments and companies explore synthetic and sustainable fuels as alternatives to conventional fossil-based fuels, particularly in sectors such as aviation where electrification is more difficult.

Co-founded by the sister-and-brother team of CEO Lark Meadows and CTO Deóis Ua Cearnaigh, Aeon Blue is based in Cape Breton and is developing seawater-based electrochemical reactor technology for sustainable fuels and related products.

“We are honoured to work alongside Eskasoni on a project that advances both Canada's climate goals and its sustainable energy future,” said Meadows. “Our shared commitment to this land and its people is what makes this partnership possible.”