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What's driving interest in jet fuel from biomass?
The recession is taking its toll on many efforts to control
greenhouse gas (GHG) emissions. Indeed, it now appears unlikely that Congress
will move forward on regulations in the near future ... perhaps waiting until
after the 2010 elections. While it is still possible that the EPA will pursue
regulations based on its "endangerment" finding, it would seem unlikely that
such regulations would be very broad, at least initially, since it would be
politically risky to implement sweeping changes in our energy system via
regulatory fiat as opposed to publicly-debated legislation. However, any
delaying of GHG regulations does not mean that interest in reducing aviation's
emissions will subside. The reason for this is that both the airline industry
and the US Department of Defense share a strong interest in developing aviation
fuels that are not derived from crude oil. Since these two groups consume over
90% of the JetA in the US, their policies and priorities will determine the
future of this fuel. One of the ways that the shared interest of the airlines
and DOD is demonstrated is through their leadership roles in the Commercial
Aviation Alternative Fuels Initiative (CAAFI).
I was invited to attend CAAFI's annual meeting in late
September where I learned more of this shared interest in alternative fuels,
especially those that will be a "drop in" replacement for crude-based JetA.
Both the airlines and DOD hope that alternative fuels will at least reduce the
volatility of JetA prices, if not reduce them. A big concern is that as US
gasoline demand falls (due to mandated fuel economy improvements in cars),
refineries will close (this is already happening) thereby reducing JetA
production also. (Refineries cannot infinitely vary the ratio of JetA and
gasoline that can be produced from a single barrel of oil ....less gasoline, less
JetA.) Since airlines hope to grow when the economy picks up, this means more
JetA. But if gasoline demand is falling, the price of JetA would be pushed up
by this increased demand if it only comes from the same barrel of crude.
In addition to economic considerations, both the airlines
and DOD are attracted to the potentially lower GHG impact of alternative fuels.
The airlines face the potential of US regulations and the immediate reality of
European Union regulations. Alternate fuels, especially if available at
reasonable cost, could help deal with these. The DOD faces a slightly different
requirement: by Congressional mandate (Section 526 of the Energy and Security
Act of 2007), the DOD cannot purchase any non-petroleum fuel that emits more
CO2 over its "wellhead to wake" lifecycle than crude-based fuels. The only
feedstocks that could meet this requirement would be those derived from biomass
(and some such feedstocks might not qualify based on an analysis of their
lifecycle carbon footprints).
The net result of these twin economic and environmental
drivers is that virtually all players in the aviation fuel eco-system (oil
companies, fuel distributors, engine manufacturers, FAA, ASTM, ATA, investors,
etc.) are cooperating to develop one or more, drop-in, Jet A replacement. The
plant sources of most interest are ones that do not use or compete for land
with food crops: algae, camelina, and jatropha.
There are many economic, technical, and environmental issues
to be resolved before these fuels become available. But the alignment of
interests would seem to suggest that these issues must and will be resolved.
And the JetA portion of GA will be taken along on the ride.
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News from the US
The General Aviation Manufacturers Association (GAMA) and
the International Business Aviation Council (IBAC) announced in late November
that they had formed a group of international aviation interest groups to
jointly support goals to reduce the climate impact of business aviation. The
group issued a statement in
support of the environmental goals set in October by the International Civil
Aviation Organization (ICAO): carbon neutral growth by 2020, efficiency
improvement of 2% per year through 2020, and a reduction of total CO2 emissions
of 50% of 2005 levels by 2050. An important component of the GAMA/IBAC
commitment is the call for the ICAO to be given global authority for aviation
emissions targets and monitoring, as opposed to granting this authority to
national or regional entities.
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News from Overseas
In late November, the
International Civil Aviation Organization (ICAO), an agency of the United
Nations, announced
that its annual conference adopted a framework for promoting the development
and use of alternative fuels in aviation. Referred to as GFAAF (Global
Framework on Aviation and Alternative Fuels), the program calls for 10% of the
world's aviation fuels to come from sustainable sources within 10 years. ICAO
will report progress toward this goal with a frequently updated page on its
website.
As we discussed in our last newsletter, regulations take
effect on January 1, 2010 requiring most aircraft flying to and from Europe to
have on file with appropriate European authorities a CO2 emissions monitoring
plan. As evidenced by a heated discussion session on this topic at the annual
NBAA convention attended by this reporter, many aircraft operators found the
roll out of the regulations to be late and unclear. Nevertheless, it seems
these same aircraft operators are quickly complying with the requirement to
file their monitoring plans. High rates of compliance
have been reported by both the UK (98%) and Germany (97%).
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Aviation Technology
In the past few weeks, Honeywell's UOP subsidiary has made
two press releases
describing their ongoing progress in developing "second generation" processes
to create drop-in aviation fuels from non-food biomass. One announcement
described a test flight in Holland on board a KLM 747 of a 50/50 mix of synfuel
and petroleum-based fuel. A second announcement described an agreement with the
DOD for the purchase from UOP of 600,000 gallons of renewable jet fuel for use
by the Navy and Air Force. The program includes participation with 3 partners
and 3 different non-food feedstocks: Solazyme (algae), Sustainable Oils
(camelina), and Cargill (animal fat).
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Footnote
The above discussion on alternative aviation fuels would
not be complete without at least mentioning some of the cautions that have been
raised about basing aviation's GHG salvation on biomass feedstocks. An obvious
concern is that of land use. Even when relying on non-food feedstocks, based on
current plant yields, it is unlikely that we will be able to displace more than
a small percentage of projected aviation fuel demand with biomass feedstocks.
The issues of energy and CO2 accounting also raise big
question marks. Many are familiar with the controversy over the questionable
CO2 benefits of ethanol in automotive fuels when the ethanol is produced from
corn. Similar controversies will arise over any bio-fuel. The reason for this
is that how one does that analysis (e.g., how one "draws the boundaries" for
the analysis) can be quite arbitrary. You can get almost any result you want
based on your assumptions. Policy makers (e.g., the EPA regulations or specific
legislation) might define the methods of and boundaries for analysis), but
setting these rules, even some "consensus" process, will not remove the
arbitrariness.
Finally, some analysts report a concern over a shortage of
phosphorus, commonly used as fertilizer. One can do a web search on "peak
phosphorus" to find enough controversial reading to pass a stormy winter
weekend. To the extent that these concerns become technical, environmental,
economic, or political barriers to alternative aviation fuels, the fall-back
for aviation will be the ever-present and current option ..... offsets.
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Carbon Neutral Plane in the News

Jeff Witwer's presentation at the NBAA conference in October was well received. Send us an email request if you'd like to receive a copy.
Send your comments and suggestions to: newsletter@ carbonneutralplane.com
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