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IATA 201 1 Report on Alternative Fuels Effective December 201 1 6 th Edition

IATA 2011 Report on Alternative Fuels

Effective December 2011

6th

Edition

IATA 201 1 Report on Alternative Fuels International Air Transport Association Montreal — Geneva Effective December

IATA 2011 Report on Alternative Fuels

International Air Transport Association Montreal — Geneva

Effective December 2011

6th

Edition

NOTICE

DISCLAIMER. The information contained in this publication is subject to constant review in the light of changing government requirements and regula- tions. No subscriber or other reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for any loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof. Furthermore, the Interna- tional Air Transport Association expressly disclaims any and all liability to any person or entity, whether a purchaser of this publication or not, in respect of anything done or omitted, and the consequences of anything done or omitted, by any such person or entity in reliance on the contents of this publication.

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Senior Vice President Safety Operations & Infrastructure International Air Transport Association 800 Place Victoria P.O. Box 113 Montreal, Quebec CANADA H4Z 1M1

IATA 2011 Report on Alternative Fuels Ref. No: 9709-04

978-92-9233-668-4

© 2011 International Air Transport Association. All rights reserved. Montreal — Geneva

Alternative Fuels Foreword 2011

Dear readers,

in 2011, the aviation industry has experienced exceptional growth of alternative aviation fuels. this emerging field has gone from dream to reality faster than anyone could have expected, fuelled by a spirit of mutual support and cooperation between airlines, aircraft and engine manufacturers, fuel producers, and standards setting bodies. this coordinated approach is truly unique to aviation and the progress we have seen is a testament to its effectiveness.

this year alone, we have witnessed the first transatlantic biojet flights, the first commercial passenger biojet flights and the first regular use of biojet by commercial airlines. the number of announced alternative fuel activities has increased from 11 in 2009 to over 300 in 2011.

Despite this amazing progress, iata recognizes that this growth cannot be unconstrained by environmental and social considerations, which is why iata continues to participate in the development of strict biofuel sustainability criteria through the lausanne-based roundtable for sustainable Biofuels as well as support the research of algae-derived fuels. although two types of biojet fuel have already been approved for use (Fischer- tropsch and hydroprocessed biojet fuels), iata is encouraging the approval of at least two more new fuels in the coming years that will increase the options available to airlines. this report includes descriptions of these sustainability requirements and gives a preview of these new fuels.

if our industry is to achieve its ambitious targets for carbon neutral growth by 2020, including emissions reductions with annual fuel efficiency improvements of 1.5%, and a 50% emissions reduction between 2005 and 2050, then sustainable biojet fuel must play a major role. Given the progress we have witnessed over the past few years, we are very much on track with alternative fuels to achieve this target.

i would like to sincerely thank industry specialists from airlines, manufacturers, and governmental bodies for their contributions to this report.

Best regards,

Alternative Fuels Foreword 2011 Dear readers, in 2011, the aviation industry has experienced exceptional growth of
Alternative Fuels Foreword 2011 Dear readers, in 2011, the aviation industry has experienced exceptional growth of

Günther Matschnigg, senior Vice president, safety, operations and infrastructure

Summary

This is the sixth edition of the IATA Report on Alter- native Fuels, which builds on previous editions by focusing on future fuels as well as the most up to date state of sustainability certifications, economic consid- erations, and government and stakeholder programs.

The year 2011 has been marked by the certification of HEFA (hydroprocessed esters and fatty acids, i.e. oil and fat-derived) biojet fuels and a surge of biojet- operated commercial passenger flights immediately following this event. Eight airlines in Europe and Latin America have been performing such flights so far, some of them having started regular services on biojet between specific city pairs. Despite this success, deployment of industrial biojet production capacities and large-scale commercialization are still challenges.

The first chapter of this report gives an overview of the current state of biojet fuels and the recent activi- ties announced around the world. The reasons for the chosen format of this report are given as well. This overview contains an introduction and brief back- ground of the topics covered in the rest of the report.

The second chapter summarizes the certification process for new fuels. The two approved types, Fischer-Tropsch and HEFA, are described, as well as two biojet fuels currently being analyzed for future approval: alcohol-to-jet (ATJ) and synthetic kero- sene containing aromatics (SKA). The US Air Force program checking biofuel compatibility with fuel infra- structure is also described; no compatibility problems are reported.

The sustainability of biojet fuel is addressed in Chapter 3. Various regulatory standards exist in different countries which have to be met in order to qualify for public incentives. In addition, voluntary standards for biofuels have been developed; amongst them, the standard of the Roundtable on Sustainable Biofuels (RSB), a Lausanne-based global multi-stakeholder certification body, is the most comprehensive. Recent developments in the RSB certification program are described in this chapter, as well as ongoing field trials applying the RSB criteria in Mozambique and Brazil.

If the production of biojet fuel is to attain sufficiently large volumes to meet the industry’s expectations for emissions reduction, there will need to be government programs in place to incentivize the construction of biofuel production plants. Chapter 4 addresses some of the policy levers that would result in increased

biojet fuel production. An announced investment of US$ 510 million by the US Department of Energy has been directed towards the development of a domestic biojet fuel industry, and is designed to help overcome the risk of investing in biojet production. The European Commission has announced the European Biofuels Flight Path Initiative, which aims to achieve 2 million tons of biojet fuel in the European Market by 2020. Second generation biofuels derived from feedstock indigenous to developing countries provide a poten- tially viable commercial opportunity in the medium to long term but require further research and develop- ment. Two “pull” mechanisms for incentivizing biojet production are considered, a blend mandate and forward contracts.

Several groups made up of multiple aviation industry stakeholders have been formed to advance alternative aviation fuels. The progress of these groups, including AIREG in Germany, CAAFI in the US, and SWAFEA in the EU, are described in Chapter 5. In addition, the US military services (including the Army, Navy and Air Force) have been certifying various platforms for several types of biojet fuels and their progress is also reported in Chapter 5. Finally, a new multi-stake- holder consortium in Brazil, which is a nation with a strong background in biofuels, has been formed to investigate local biojet production.

Finally, chapter 6, “Notable Developments in Alterna- tive Aviation Fuels”, summarizes some of the exciting commercial advancements that have taken place in the past year. Mexico’s national airport services company, ASA, has embarked on a biojet program that involves growing local feedstock, converting it to biojet, and consuming it on flights out of Mexico. Also, the Lufthansa group of airlines has begun operating eight daily biojet flights between Hamburg and Frankfurt on a dedicated A321, under the project name PureSky. In Australia, the Qantas group has entered into agree- ments with Solena and Sapphire Energy to develop their technology for the Australian biojet market, and in Europe, Air France flew what it believes is the greenest flight ever by utilizing a combination of biojet fuel, and technological and operational optimization. TAROM, the Romanian airline, has embarked on an ambitious biojet fuel project that includes analyses of Camelina as the primary feedstock and the effects on the entire supply chain from the crop to finished fuel, and Sky NRG and BioJet Corporation report on their efforts to deploy biojet fuel.

Quick Facts

  • Ê the number of announced alternative jet fuel activities around the world surged from less than sixty in 2010 to over three hundred in 2011;

  • Ê the first transatlantic biojet flights took place in 2011, as did the first commercial passenger biojet flights;

  • Ê HeFa biojet fuel (hydroprocessed esters and fatty acids 1 – derived from oils and fats) was added to the astM specification for jet fuels in 2011. HeFa joins Ft (Fischer-tropsch) fuel as the only acceptable substitutes for conventional petro- leum-derived jet fuel;

  • Ê two further alternative jet fuels have task forces considering them for astM certification: synthetic kerosene containing aromatics (sKa) and meta- bolically-derived synthetic kerosene (sKM);

  • Ê trials are being carried out analyzing biomass crops and applying newly-published strict sustain- ability criteria developed by the roundtable on sustainable Biofuels (rsB), with the first certifi- cations expected in late 2011 or early 2012;

  • Ê Multiple government programs are already in place to promote the use of biojet fuel and provide funding mechanisms; these include the environ- mental policy act in the us, the european Biofuels Flight path initiative, and the Brazilian Biokerosene platform.

recommendations

  • Ê support the approval of new biojet fuels from different feedstocks and conversion processes – diversity of supply is critical to finding cost-effective solutions;

  • Ê ensure a strong focus on biomass sustainability through a comprehensive range of environmental, societal and economic criteria;

  • Ê Work towards globally harmonized sustain- ability criteria for the production of biomass and the processing of biojet fuels – a patchwork of incompatible criteria is a barrier to large scale biojet use;

  • Ê Develop synergies between all parts of the supply chain and also between the aviation and automo- tive industries;

  • Ê Governments should provide incentives for airlines to use biofuels from an early stage and de-risk public and private investments in aviation biofuels. incentives should establish a level playing field between aviation and road biofuels.

1. in previous reports HeFa was referred to as hydroprocessed renewable jet fuel (HrJ). this change was made to align with astM convention.

Table of Contents

Alternative Fuels Foreword 2011

1

Summary

2

Quick Facts

3

recommendations

3

  • 1. Overview

9

  • 1.1 introduction ................................................................................................................................

9

  • 1.1.1 a note on sustainability

9

  • 1.2 Global research into Biojet Fuel

.......................................................................................

10

  • 1.3 on the Format of iata’s report on alternative Fuels

10

  • 2. Certification

11

  • 2.1 chapter summary

11

  • 2.2 introduction .............................................................................................................................

11

  • 2.3 astM D7566 – a standard for alternative aviation turbine Fuel

11

  • 2.3.1 the Basic concept of D7566

11

  • 2.3.2 current status of D7566

11

  • 2.3.3 Future additions

12

  • 2.3.4 a General caveat

13

conclusion

  • 2.3.5 .................................................................................................................

14

  • 2.4 overview of synthetic Kerosene with aromatics (sKa)

14

Background

  • 2.4.1 ...............................................................................................................

14

  • 2.4.2 production of sKa

14

  • 2.5 alcohol-to-Jet (atJ) overview

15

  • 2.5.1 comparison to currently available processes

16

  • 2.5.2 atJ certification and approval process

16

  • 2.6 compatibility of new Fuels with Fuel infrastructure – us air Force experience

17

  • 3. Sustainability ..........................................................................................................................

19

  • 3.1 chapter summary

19

  • 3.2 introduction .............................................................................................................................

19

  • 3.3 Governmental regulations and sustainability

19

  • 3.4 rsB certification

..................................................................................................................

20

  • 3.5 Field research – testing of the rsB social Guidelines and relevant

Definitions in the context of the novabra Jatropha project in colatina,

espirito santo, Brazil

............................................................................................................

21

  • 3.6 sustainability assessment and GHG Balance of Jatropha in Mozambique

22

  • 4. Economic Policy for Biojet Production

23

4.1

Chapter Summary

.................................................................................................................

23

4.2

Introduction .............................................................................................................................

23

4.3

Push Mechanisms

.................................................................................................................

23

  • 4.3.1 Research and Development Funding

23

  • 4.3.2 US Research & Development Programs

23

  • 4.3.3 European Research & Development Programs

24

  • 4.3.4 Enhancing Production of Indigenous Second Generation Biofuels

in Developing Countries

25

4.4

Pull Mechanisms

....................................................................................................................

26

  • 4.4.1 Blend Mandate ..........................................................................................................

26

  • 4.4.2 Forward Contracts and Off-Take Agreements

26

  • 5. Stakeholder Initiatives

 

29

5.1

Chapter Summary

29

5.2

AIREG – The New German Centre of Competence on Aviation Biofuels

29

5.3

US Defense Logistics Agency (DLA) Energy Biofuels Initiatives

30

5.4

The United States “Farm to Fly” Initiative

.........................................................................

32

5.5

The Brazilian Biojet Fuel Platform

......................................................................................

33

  • 5.5.1 The Sustainable Multi-Feedstock Unit

34

  • 5.5.2 The Logistic Unit

.......................................................................................................

35

  • 5.5.3 The Biorefinery Unit

35

5.6

SWAFEA: A European Study on the Feasibility And Impact

of the Introduction of Alternative Fuel in Aviation

35

Background

  • 5.6.1 ...............................................................................................................

35

 

36

5.7

CAAFI

36

CAAFI Goals

  • 5.7.1 .............................................................................................................

36

  • 5.7.2 Function and Focus

.................................................................................................

37

  • 5.7.3 Flying into the Future – The Flight Continues

38

  • 6. Notable Developments .................................................................................................

39

6.1

Chapter Summary

39

6.2

Recent Activities on Sustainable Aviation Biofuels in Mexico

39

  • 6.2.1 Next Steps at ASA

42

6.3

Lufthansa’s New Brand “PureSky – Sky Friendly Energy ®

42

  • 6.3.1 “PureSky Working Group”

42

  • 6.3.2 “Burn FAIR” Inflight Evaluation of Engine Behavior and Corresponding

Research Work

42

  • 6.3.3 “QuanaBiol – Quality and sustainability requirements for Biofuels”

43

  • 6.3.4 sustainable Biokerosene Feedstock supply for aviation – leuphana university .................................................................................................

43

  • 6.3.5 aireg e.V. – aviation initiative for renewable energy in Germany

................

43

  • 6.4 platform for sustainable aviation Fuels – university of lüneburg /Germany

44

  • 6.5 Qantas sustainable aviation Fuels

44

  • 6.5.1 Qantas Biojet projects

45

  • 6.5.2 australian Biojet initiatives

45

  • 6.6 air France’s Green Flight

46

  • 6.7 taroM and the First european camelina Value chain

47

  • 6.7.1 the romanian camelina Value chain

47

  • 6.7.2 camelina Feedstock

47

  • 6.7.3 project structure

47

  • 6.7.4 next steps: Development and Deployment

48

  • 6.7.5 What Makes this project special?

48

  • 6.7.6 the project’s Focus

49

  • 6.7.7 are there any limits?

49

  • 6.8 skynrG – the Fuel Future

49

  • 6.8.1 skynrG’s Mission

..................................................................................................

49

  • 6.8.2 skynrG accomplishments

50

  • 6.8.3 skynrG Bioports™

51

  • 6.9 BioJet corporation ................................................................................................................

51

  • 6.9.1 2011 Highlights

........................................................................................................

51

  • 6.9.2 capital & Finance

51

  • 6.9.3 Feedstock ...................................................................................................................

52

  • 6.9.4 native american projects

52

  • 6.9.5 refining/conversion

52

sales/offtake

  • 6.9.6 .............................................................................................................

53

sustainability

  • 6.9.7 ..............................................................................................................

53

Glossary

54

Definitions

54

Acronyms

56

Acknowledgements

57

report on alternative Fuels

1. overview

1

1.1

introduction

the year 2011 has been a milestone year in biojet fuel. it marks the year in which bio-derived HeFa (hydro- processed esters and fatty acids) was approved by astM, and new astM task forces are making prog- ress towards approving sKa (synthetic kerosene containing aromatics) and sKM (metabolically-derived synthetic kerosene). this paves the way for four different types of biojet fuel approved for blending with conventional jet fuel in the coming years.

2011 also witnessed the first biojet commercial trans- atlantic flight, regular commercial use, and a burst of activities so numerous that in just two years it has become impractical to describe each one individually (see graph below).

1. overview 1 1.1 introduction the year 2011 has been a milestone year in biojet fuel.

Figure 1 – Global alternative fuel aviation activities 1 as tracked by the international civil aviation organization (icao).

impressive progress has been made but it is crucial not to recreate the mistakes of first generation ethanol and biodiesel. While these fuels have certain merits and are often found to be superior to petroleum in lifecycle carbon emissions, they have also competed with food and other industries for valuable farm land, possibly contributing either directly or indirectly to deforestation and land use change.

  • 1.1.1 a note on sustainability

it is essential to consider the sustainability of biofuel crops. the creeping increases in petroleum prices, ambitious biomass energy targets, and the ever- increasing land required for food and oleo-chemical production have created strong demand for biomass and the land required to grow it. the sustainability of biofuels is imperative, which needs to be reached by appropriate standards and policy measures.

in May 2011, the international energy agency published a technology roadmap on biofuels for transport 2 , and found no fewer than 67 sustainability schemes oper- ating or under development around the world. as of July 2011, the european commission (ec) only recog- nizes the following seven 3 schemes as compatible with

their renewable energy Directive (reD):

  • 1. iscc (international sustainability and carbon certification)

  • 2. Bonsucro eu

  • 3. rtrs eu reD (round table on responsible soy eu reD)

  • 4. rsB eu reD (roundtable on sustainable Biofuels eu reD)

  • 5. 2Bsvs (Biomass Biofuels voluntary scheme)

  • 6. rBsa (abengoa reD Bioenergy sustainability assurance)

  • 7. Greenergy (Greenergy Brazilian Bioethanol verification programme)

notably, in the usa , there is also the renewable Fuels standard (rFs2) that requires producers to meet certain sustainability criteria to qualify for incentives. a description of the eu reD and rFs2 sustainability criteria can be found in the 2010 iata report on alter- native Fuels.

  • 1. alternative fuel aviation activities are those relating to fuel certification, policy and process setting, standardization, and tests or demonstrations

  • 2. http://www.iea.org/papers/2011/biofuels_roadmap.pdf

  • 3. source: http://ec.europa.eu/energy/renewables/biofuels/sustainability_schemes_en.htm

  • 1 iata has been an active participant in sustainability discussions and has worked with the roundtable on sustainable Biofuels towards developing sustain- ability criteria for certification purposes. the rsB is the most comprehensive existing biofuel standard, which goes beyond reD and rFs2 and also extends the requirements into the social domain. rsB relies on the individual auditing of each applicant’s process and procedures to verify environmental benefit. the goal of achieving widespread biojet use around the world would be made significantly simpler if there were globally harmonized sustainability standards that would be recognized in the eu, the us, and elsewhere around the world. aviation operations are inherently international, so it is essential that biojet purchased in one region and meeting local sustainability criteria would be recognized as sustainable at that aircraft’s destination. achieving harmonization or at least mutual recognition between the different standards is there- fore an important need for a successful deployment of biojet fuel worldwide.

    • 1.2 Global research into Biojet Fuel

the questions of technical certification, sustainable biomass production and economic measures have been considered at length by other organizations. For example, sWaFea 1 is a european consortium consisting of airlines, governments and nGos, and tasked with answering the most pressing questions in aviation biofuels. this group has published its conclu- sions and recommendations on lifecycle analyses, economics, policy options and more. caaFi 2 is a comprehensive american multi-stakeholder initia- tive that has played an important role in providing the necessary data and expertise to astM 3 subcom- mittee J that approves new jet fuels. the us military represents yet another group that funds research and purchase of biojet fuels. the progress witnessed and milestones achieved over the past few years have been due in large part to the work of groups such as these; therefore one full chapter of the present report is dedicated to descriptions of these initiatives. Further information regarding sWaFea , caaFi, and the other groups can also be found online in the 2009 and 2010 iata reports on alternative Fuels.

  • 1.3 on the Format of iata’s report on alternative Fuels

iata depends on a broad range of experts who contribute information for this report. these volunteers are asked to supply by mid-fall each year descriptions and explanations of new certifications, technologies, program progress and more. By november, the editors have combined the contributors’ (listed in the acknowl- edgements section) submittals into its present format.

the goal of this report is not to lay out procedures or best practices, but simply to inform the reader on progress that has taken place over the past year. i t is not intended to be read from cover to cover, but rather based on the chapter that is most interesting to the reader.

in order to address questions of procedures and best practices required for an airline to use biojet, iata and its strategic partners have been developing the iata Guidance Material on Biojet Fuel Management (BioGuide for short). the BioGuide addresses the following four topics:

  • Ê certification and handling;

  • Ê sustainability;

  • Ê emissions regulation compliance;

  • Ê purchase contracts and insurance.

the BioGuide also contains in its annex a procedure for tracking biojet fuel purchases. if properly followed, the procedure could allow for the aggregate of such purchases to be applied towards emissions allow- ances, for example under the eu emissions trading scheme (ets). therefore, the BioGuide can be considered more of technical, commercial and regula- tory guidance material, whereas the iata report on alternative Fuels is for informational purposes only. the BioGuide is scheduled to be published by iata in 2012.

  • 1. sustainable Way for alternative Fuels and energy in aviation

  • 2. commercial alternative aviation Fuels initiative

  • 3. Formerly the american society for testing and Materials

2. c ertification

2

  • 2.1 chapter summary

astM international – formerly the american society for testing and Materials – has recently approved a second synthetic jet fuel (in addition to its original acceptance of jet fuel derived through the Fischer- tropsch process), derived from fats and oils, and called HeFa (hydroprocessed esters and fatty acids). astM has created task forces to investigate two further fuels:

synthetic kerosene containing aromatics (sKa), and alcohol to jet fuel (atJ). in addition, compatibility tests were run by the us military to check if fuel infrastruc- ture is affected by the chemical properties of synthetic fuels; no incompatibilities were reported.

  • 2.2 introduction

the certification of new fuels is an essential step towards integrating biojet fuel in aviation. astM inter- national has approved a new standard for these fuels that corresponds closely to existing standards for conventional jet fuel. this new standard, astM D7566, and a variety of compatible fuels are described below.

  • 2.3 astM D7566 – a standard for alternative aviation turbine Fuel

the development of astM D7566, the standard specification for aviation turbine Fuel containing synthesized Hydrocarbons, was the result of a concerted effort of government and industry volun- teers. this group was dedicated to providing a way forward for the aviation industry while preserving the quality and capability of the fuel upon which the industry has relied.

  • 2.3.1 the Basic c oncept of D7566

the fact that refined aviation turbine fuel is rarely an issue for commercial aviation is a testament to the five plus decades of specification activity that has resulted in excellent control. the basic concept for approving alternative fuels was defining that this experience described bounds for what is fit for purpose in avia- tion turbine engines. thus it was reasoned that if the alternative fuel could be made to perform in the same manner it too would be fit for purpose.

turbine fuel is used for more than power. its heat transfer and hydraulic actuation properties are also important attributes. it also has to be compatible with the materials from which the aircraft are made and

with the environments in which the aircraft is operated. over two decades of effort, starting with the sasol effort to supply synthetic aviation turbine fuel in south africa, have gone into defining the key properties of aviation turbine fuel. the basic outline of these prop- erties is found in the latest release of astM D4054, the standard practice for Qualification and approval of new aviation turbine Fuels and Fuel additives. this is not a routine process but an interactive journey with the aviation community in general and the airframe and power plant manufacturers in particular. the more that is known about hydrocarbons, for instance, the less exotic the testing but each new hydrocarbon class has resulted in new evaluation recommendations.

  • 2.3.2 current status of D7566

astM D7566-11a has just been modified to include the first alternative path aimed exclusively at biologically derived jet fuel components from the hydroprocessing of fats and oils, HeFa synthetic paraffinic kerosene (spK). this relatively quick addition to D7566 was aided significantly by how closely the HeFa spK resembled the kerosene generated in the Fischer tropsch process, Ft spK. While the inclusion of

a primarily renewable path was the industry goal from the outset of the standardization process, the obvious starting point was with reasonably established (nearly a decade of experience in south africa) Ft spK.

  • 2 it was not simply a matter of codifying existing practice however. the sasol Ft spK was approved as a sole- site source in the uK (MoD) Defense standard 91-91. an astM specification has to be generic in nature and offer a path to use for any appropriate source. the significant issue was that the sasol Ft process is unique in comparison to newer Ft processes. the sasol process produces highly isomerized paraffinic kerosene whereas the newer processes produce paraffin wax. that wax is then put through additional processing to generate kerosene suitable for avia- tion use. in the study that led to the original D7566 the industry proved that both of these approaches produced kerosene suitable for aviation purposes. the first step in turning fats and oils into aviation fuel blend stock is removing the oxygen and breaking the molecule into its component pieces. that step produces paraffin wax, essentially the same as that generated by the modern Ft processes. this bio wax is then put through the same type of additional processing as the Ft wax and, as a result, produces a HeFa spK product practically indistinguishable from the Ft spK. this essential similarity allowed the industry to move forward with the approval more quickly. Where Ft spK required approximately two decades to be recognized as a generic product, the start to finish effort for HeFa spK was about 5 years. the principle is fairly simple; the more the industry knows about the hydrocarbons in general, the less that needs to be known about specific processes. a primary question of the study was on the effect of feedstock. Fats and oils, new and waste, have a wide variety of chemical properties so a wide variety of feedstocks were evaluated. the conclusion of this study was that if the product met the established requirements it was fit for purpose, regardless of feedstock origin. therefore, there are now two paths for generating alternative aviation fuel in D7566. annex a1 allows the production of Ft spK, primarily from coal and natural gas but the use of biomass as a feedstock is allowed (thus providing a renewable path). annex a2 allows the production of HeFa spK, from fats and oils. Both of these spKs may be blended up to fifty percent with refined aviation turbine fuel. the resulting product is fit for purpose and may be used without condition, other than the standard requirements for using any refined fuel. the only interest in source would be for environ- mental accounting and that would only be available at

the point of origin as the agreed practice is that the fuel produced by D7566 will enter commerce under either astM D1655 or uK(MoD) Defstan 91-91.

  • 2.3.3 Future additions

the current version of D7566 is a milestone in the production of alternative fuels but the work is not finished. even while the Ft and HeFa spKs were being standardized, new approaches to producing alternative aviation materials were being developed. the variety is impressive but the approaches can be narrowed to two primary topics: synthetic kerosene with aromatics (sKa) and metabolically derived kero- sene (sKM).

While the general belief is that less aromatics are better (for engine life and emissions), there is a minimum requirement. this is based primarily on two needs:

density and elastomer compatibility. aircraft operation planning depends on fuel meeting a minimum density requirement. the analysis of historic fuel properties that led to setting the initial blend requirements suggested that 8.0% was an appropriate value to meet density requirements. experience in synthetic fuel evaluations has shown that this is an appropriate level. this level is not specified for refined fuels because natural variation in the paraffin content can result in a denser product requiring less aromatic content.

in the extensive analysis of material compatibility for the proposed hydrocarbon blend materials one item has stood out as critical – proper sealing characteristics of nitrile elastomers. these materials are very common in the commercial fleet, particularly for sealing fuel tanks. the minimum aromatic content for maintaining seal swell has not been defined but the same histor- ical experience that pointed to 8% being a practical minimum to maintain density supports the conclusion that it is sufficient for the elastomers too.

practical experience has shown that meeting the minimum density requirement has been a limiting factor in how much spK can be used. sasol, the leader in synthetic aviation turbine fuel experience, found this limitation to be a significant issue and led an effort for another single site source approval to allow synthetic kerosene with aromatics (sKa) to be approved for use in uK(MoD) Defstan 91-91. this is not a south africa exclusive issue, so the astM emerging turbine Fuel group is working toward a generic approval for sKa . current refined fuel characteristics already limit the blending potential for spK. on the horizon are potential limits on fuel sulfur content and, if the experience with the removal of sulfur from diesel fuel is a predictor, that

could further reduce the aromatic content of refined fuel and, thus, the ability to blend in synthetic compo- nents. in the long term, producing sKa is the path to delivering a fully synthetic aviation turbine fuel.

there are some very interesting developments in the area of synthetic kerosene from metabolic processes (sKM). While fats and oils come from organisms, in this case the reference is to organisms specifically developed to generate hydrocarbon fuel. this varies from producing a building block, such as an alcohol, used to assemble kerosene class molecules to the actual generation of kerosene type molecules in the organism. evaluating the ‘fit for purpose’ nature of the sKMs introduces new questions. While most of the hydrocarbon issues may be settled science, sKMs offer new challenges. one of the unique character- istics of these materials is they tend to have a very specific chemical identity. Where the Ft and HeFa spKs have a large number of molecule types over broad distillation range, a sKM material may be as narrow as a single molecule with a fixed boiling point. While it is true that turbine engines can run on mono molecular fuel, the broad industry experience is with fuel having a wide molecular distribution and boiling point range. the essential question will likely be how much variation from a nominal distillation pattern will a turbine engine tolerate and perform as designed. as usual with aviation turbine fuel, the initial allowance will likely be conservative.

the sKMs that will come directly from internal synthesis in organisms will pose new challenges in the evalu- ation of trace contamination. For the existing spKs and the typical sKa , the synthesis process is very aggressive and eliminates most source contamination issues. From the experience with diesel fuel, where a metabolite (sterol glucoside) became a significant low temperature flow issue, the turbine fuel community is aware of the fact that the carryover of oils soluble metabolites is an issue with which it has to deal.

as new processes are developed the specification issues become more complex. the Ft and HeFa spK covered a significant variety of processes and starting materials that would work effectively. Most of the proposed sKas are aromatic inclusive versions of the existing processes but some of the sKMs include aromatic molecules. the sKMs have a variety of unique chemical products. every new synthetic source can build on the common experience but unique attri- butes will have to be addressed. Dealing with these complex issues may result in a bulky document but the aviation Fuel subcommittee will always choose clarity over brevity. Without clarity there is too much room for interpretation.

  • 2.3.4 a General caveat

organizations that intend to become involved with the acquisition, production and use of alternative aviation fuels need to seek out fuel property expertise as part of the process. the existing fuel industry has done a very good job of providing a quality product which makes the aviation industry’s prime concerns location and cost. as a result the aviation industry expertise tends to be focused on fuel as a commodity and not on its properties. experience with other transportation fuels has shown that new providers sometimes fail to meet the actual needs of the industry they sought to supply. Misunderstandings are not allowed in aviation.

some of the most egregious errors in the past, partic- ularly for biodiesel, were caused by very small marginal operators. the capital costs for processes allowed by D7566, now and in the foreseeable future, are just too great for amateur approaches. there is, however, a potential to misunderstand the requirements. the most likely points of misunderstanding are:

1. ignoring the Quality control effort required – at the start of the biodiesel effort some participants were surprised they had to prove their product met a specification and some were shocked to learn that every batch had to be tested. it is easy to anticipate similar confu- sion will be an issue for parties that are not rooted in aviation fuel technology. every batch of blend stock has to be tested. every batch of blended fuel has to be tested. if the blending is done outside of a refinery every batch of refined fuel that will be used in the blend will need to be tested to determine how much can be blended. (the blending process is not just add 50%, it is add ‘up to’ 50% if all of the table 1 requirements plus a minimum aromatic content are met.) 2. Making assumptions about the required properties – Historically there has always been a tendency to divide the specification proper- ties into ‘important’ and ‘routine’ categories. that division may be useful on a local basis for evaluating process operations, as long as the requirements are met, but ignoring the ‘routine’ would be inappropriate. nothing goes into a fuel specification that is not important. some tests may be more critical than others but every test has a purpose. 3. Mistaking the specification tests for the Fit for purpose requirements – aviation turbine fuel has many required properties that are not tested with every batch. the purpose of a specification table is not to define every

2

aspect of a fuel but to control those properties which are not a natural product of the process involved. the key task for dealing with non-
2 refined feedstocks has been defining those properties which, when applied as a specifica- tion, will assure the resulting product is fit for purpose. this understanding only applies for the process for which the specifications are developed. comparing test results to specifi- cations for approved processes is a good way to evaluate potential processes but it is not proof of equivalence.

astM D7566 provides all the required informa- tion for producing fuels with the currently approved synthesized hydrocarbon processes. Besides being a formulary, the subcommittee included all of the supplementary text from astM D1655, the standard specification for aviation turbine Fuel, to provide a better understanding of the industry requirements for the fuel being generated. the presence of documen- tation does not assure compliance, however, so an independent review by a technical expert could be an important due diligence effort for any proposed project (particularly for organizations without established avia- tion fuel credentials).

  • 2.3.5 c onclusion

Working together with the common goal of ensuring the output was ‘fit for purpose’, the government and industry volunteers that comprise the astM aviation Fuel subcommittee have delivered a specification that both solves the need for alternative, and potentially renewable, aviation turbine fuel and assures uncom- promised operations. there are two viable generic approaches now, Ft spK and HeFa spK, and more are in process. the only limitations to the future are volunteer effort and flight safety.

  • 2.4 overview of synthetic Kerosene with aromatics (s K a)

    • 2.4.1 Background

on 21 september 2010, sasol became the first company in the world to fly four commercial airplanes with passengers on 100% synthetic jet fuel which conformed to the definition of sKa (synthetic Kero- sene with aromatics). all four planes had pratt & Whitney turbine engines, and all the engines ran on the 100% fully synthetic jet fuel during the chartered

flights from Johannesburg to cape town. in what was acknowledged as a world-first, the Hawker 4000 corporate jet, Beechcraft King air 350i and p750 jets, as well as a Boeing 737-200 chartered plane with 90 passengers aboard, conducted the 1500 km flight from Johannesburg to cape town on the new jet fuel. there the aircraft took part in the african aerospace & Defence exhibition (aaD2010), which was held at the Ysterplaat air Force Base.

this was the culmination of a sustained research and testing effort over the last two decades during which sasol followed a comprehensive process for the inter- national qualification of firstly semi-synthetic jet fuel and later fully synthetic jet fuel – engaging all inter- national stakeholders throughout the process. During the course of this prolonged effort, the protocol for the approval of any future, new and alternative jet fuel was also developed, as no precedent existed for this.

  • 2.4.2 production of s K a

unlike most existing Ft refineries which would use a low-temperature Ft process with a cobalt catalyst, the sasol synfuels refinery in secunda utilizes a high- temperature process with an iron-based catalyst. as a result, the hydrocarbon product stream is unique

in that it contains single-ring aromatics in the jet fuel boiling range, in addition to the normal-, cyclic- and iso-paraffins produced by the other (lower-temper- ature Ft, as typically used for Gtl) processes. the presence of the aromatics makes it possible to blend synthetic kerosene that is more representative of conventional petroleum-derived jet fuel than the totally paraffinic kerosene produced by the more common, low-temperature (ltFt) process. although the fuel manufactured for the demonstration flights was considered to be a Fully synthetic Jet Fuel (FsJF) as described and approved in DeF stan 91-91 (issue 6), it may also be seen as an example of what may be possible under the more generic sKa definition, which is currently being developed by an astM task force.

it is envisaged that the astM’s sKa task force would initially, perhaps by December 2011, recommend the inclusion of sKa as a blending component at up to 50% (v/v), as the third annex to astM D7566, following Ft spK in annex a1 and HeFa in annex a2. in this context, sasol has again led the way by obtaining approval for the first sKa , secunda’s Heavy naphtha#1, which was approved as a semi-synthetic blend component in May 2010 by the aviation Fuels committee (aFc) (and formally included in DeF stan 91-91, issue 7, as published on 18 February 2011). it is expected that other sKa’s, that can potentially be used up to 100% on their own as Jet a/a-1 fuels,

similar to the sasol FsJF, will only be accommodated later under the generic approval protocol followed by astM international.

similar to the sasol FsJF, will only be accommodated later under the generic approval protocol followed

Figure 2 – sasol’s piet roets with the 100% synthetic Jet a-1, in front of the Boeing 737-200.

similar to the sasol FsJF, will only be accommodated later under the generic approval protocol followed

Figure 3 – the Boeing 737-200 being filled with 100% synthetic Jet a-1.ibility with seal materials.

  • 2.5 alcohol-to-Jet (atJ) overview

“alcohol to jet” (atJ) alternative jet fuel is a variety of metabolically-derived kerosene (described in section 2.3.3) and represents multiple processes in which primary feedstocks are converted to alcohol inter- mediates, which are then chemically converted into jet range hydrocarbons. a number of companies are developing atJ technologies – for alcohol production, alcohol conversion, or both. ast M has convened a task force focused on atJ fuels, which is expected to be the next alternative aviation fuel process to be certified.

atJ requires two principal conversion steps: 1) the conversion of feedstocks to alcohols and 2) the conver- sion of alcohols to jet fuel. as illustrated in the figure below, the primary feedstocks for atJ may be starches

or sugars, biomass, or industrial waste gases. starches and sugars may be converted to alcohols through direct fermentation. Biomass may be converted to alcohols by pretreatment to release sugars, followed by fermen- tation, or by gasification to produce synthesis gas (co + H 2 ), followed by gas fermentation. the alcohol intermediates may be ethanol, butanol, other alcohols, or mixed alcohols. alcohols are then converted to jet using standard chemical processes.

2

similar to the sasol FsJF, will only be accommodated later under the generic approval protocol followed

Figure 4 – overview of alcohol-Derived (aD) or alcohol-to-Jet processes.

  • 2.5.1 c omparison to currently available processes

  • 2 Both Ft and HeFa produce only the paraffinic content of jet fuel and rely on petroleum resources in jet fuel blends to provide the aromatic content. some atJ processes provide a route to renewable aromatic hydrocarbons in the jet fuel range, in addition to branched and cyclic paraffins, providing a pathway to a 100% substitute for petroleum derived jet as well as a blending component. atJ processes can utilize traditional feedstocks such as corn and sugarcane, energy crops like miscanthus and switchgrass, and other waste biomass sources like municipal solid waste or agricultural waste such as bagasse or corn stover. in addition, companies have demonstrated that woody biomass, and even industrial waste gases integrate with atJ technology. this feed- stock flexibility significantly expands the feedstocks for

alternative aviation fuels beyond those suitable for Ft and HeFa , lowers feedstock costs and creates a clear path to commercial scale production.

a summary of atJ processes in development is provided in the table below. these often represent partnerships between alcohol production and alcohol conversion technology providers, and use different alcohol intermediates. u.s. Federal agencies, such as Defense advanced research projects agency and the Department of energy have funded r&D programs to develop atJ processes. in addition, the Defense logistics agency recently awarded a procurement contract to Gevo for up to 11,000 gallons of atJ for fuel testing. Downstream partnerships have already been announced in anticipation of commercial atJ production: united airlines/Gevo and Virgin atlantic/ lanzatech/swedish Biofuels have announced their intent to utilize atJ fuels for future commercial flights.

Company Feed stock Primary Processing Intermediates Conversion Process Final Fuel
Company
Feed stock
Primary Processing
Intermediates
Conversion Process
Final Fuel

Gevo

Corn; Biomass

Direct Fermentation

Isobutanol

Dehydration, Oligomer-

AD-SPK

 

ization, Fractionation,

Hydrogenation

Cobalt

Biomass

Direct Fermentation

n-butanol

Dehydration, Oligomeriza-

AD-SPK

 

tion, Hydrogenation

Byogy

Sugar Cane; Corn;

Direct Fermentation

Ethanol & Other Alcohols

Dehydration, Catalytic

JP8/Jet A-1

Biomass

Synthesis Fractionation,

 

Polishing

Terrabon/Logos

Biomass

Fermentation/Reduction

Mixed Alcohols

Dehydration, Oligomeriza-

JP8/Jet A-1

 

tion, Hydrogenation

LanzaTech/Swedish

Biomass; Industrial Gas

Direct Fermentation

Ethanol & Other Alcohols

Chemical Synthesis

AD-SPK & JP8/Jet A-1

Biofuels

Virent

Sugars; Starches;

Thermal Catalytic

Alcohols, Ketones, &

Condensation, Hydrode-

AD-SPK & JP8/Jet A-1

Biomass

Aldehydes

oxygenation Dehydration,

 

Oligomerization,

Hydrogenation

Zeachem

Biomass

Fermentation/Reduction

Ethanol & Propanol

Dehydration, Oligomeriza-

AD-SPK

 

tion, Hydrogenation

  • 2.5.2 atJ c ertification and approval process

the commercial aviation alternative Fuels initiative (caaFi) and the Federal aviation administration (Faa) are working aggressively to accelerate certification of new alternative aviation fuels. Many of the companies with atJ technology processes are collaborating with caaFi, the Faa , engine manufacturers, and many other aviation industry stakeholders and certification bodies

to support the astM international certification of an alcohol derived jet fuel. the atJ pathway is the next upcoming class of alternative jet fuel processes to be evaluated for certification in 2012. in accordance with astM D4054, several companies with atJ processes are currently producing fuel samples for testing by the air Force research laboratory (aFrl) and inclusion in a detailed research report that will be provided to engine manufacturers and presented at the upcoming astM D02 conference in December of 2011.

  • 2.6 c ompatibility of new Fuels with Fuel infrastructure – us air Force e xperience

the us air Force launched a full-scale effort in 2007 to certify its entire fleet of aircraft on the use of an alternative aviation fuel consisting of a blend of 50%v (percent by volume) Jp-8 and a fuel produced from a feedstock that did not involve crude oil. at that time, an alternative fuel produced via a Ft synthesis was the lone non-crude-oil-based fuel that was in full-scale production and was consequently available in quanti- ties large enough to support this air Force certification effort. a blend of 50%v Jp-8 and an Ft-derived fuel was therefore chosen as the alternative certification fuel.

the properties of what was considered to be an acceptable Ft fuel were defined in the “F” revision to the specification for Jp-8 (F-34), Mil-Dtl-83133. as part of this effort, the air Force initiated an effort to determine any impact that a Jp8/Ft-derived alternative fuel blend might have on the part of the air Force infra- structure (aFi) that is used to handle and store fuels. this aFi fuel certification effort included an investiga- tion of the following:

  • Ê the compatibility of an Ft-derived fuel and Jp-8 fuel blend with fuel-wetted materials found in the aFi;

  • Ê the compatibility with fuel Filter/separator (F/s) equipment;

  • Ê any change in the performance of equipment used in the fuels infrastructure, followed by a field evaluation in an isolated working fuel storage and delivery system.

the investigation of the aFi material’s compatibility relied to some extent on laboratory-scale materials testing which had been performed by the air Force research laboratory (aFrl) prior to and during the initial stages of the aircraft fleet certification effort. this was due to the fact that some of the materials tested in the fleet certification work were identical to or suffi- ciently similar to the materials found in the aFi.

the fuels used in this work were for the most part blends with varied contents ranging from 100%v Ft (0%v Jp-8) down to 0%v Ft (100%v Jp-8). this testing involved both liquid and vapor phase expo- sures. the materials used in these tests included both metallics and non-metallics (including collapsible fuel storage tank materials) along with pertinent adhesives, sealants and coatings. in some cases, these materials were tested in both new and aged conditions (i.e., after having been exposed to Jp-8 for a number of months).

several materials were tested in a sequence that mimicked the changing environments of switch loading between an Ft fuel blend with Jp-8 and neat Jp-8.

the work addressing the compatibility with air Force F/s equipment included both military and commer- cial equipment and was conducted in two parts. the first part consisted of single element tests on filter elements manufactured per ei 1581 5th edition, and on M il- pr F-32148 shipboard elements utilizing a mixture of F t fuel and J p-8 at 50%v with all required military additives. the second part was performed with the same type of equipment and with a mixture of F t fuel and J p-8 at 50%v without any of the additives. the equipment and field evaluations were preceded by a literature review of studies and reports from investigations which had already taken place in order to better focus these efforts. the facilities and equip- ment evaluated included aviation fuel-related receiving, storage, pumping, transfer, dispensing, direct fueling hydrant systems and associated fuel system compo- nents. the field evaluation was performed utilizing a working type iii hydrant fueling system at an air Force base for a period of six months beginning in May 2009. i nitially, a baseline evaluation was accom- plished using standard J p-8 fuel. Following this, the system was operated using a 50%v mixture of Jp-8

and an F t fuel. During the evaluation, the system was continuously inspected for fuel leakage or any sign of system anomalies. i n addition, measurements were

made throughout the evaluation on fuel flow rates and pressures.

the results of this evaluation suggest that no signifi- cant material incompatibilities should be anticipated when using a blended fuel containing up to 50%v Ft synthetic fuel and Jp-8. the us air Force is, however, continuing to require an aromatics content of at least 8%v in any fuel blend consisting of a mixture of Jp-8 and synthetics. in addition, these aromatics must originate in the petroleum-based content of the blend. this requirement is based on studies performed in the past which have concluded that a minimum aromatics content be maintained to ensure the continued integ- rity of some nitrile-based sealing materials. the results of the F/s testing demonstrated that the Ft fuel blended with Jp-8 at 50%v had no effect on the F/s equipment being able to remove sediment or water from the fuel and based on the operational portion of this evaluation, no significant differences were found in the performance of equipment or facilities when using a blended fuel consisting of 50%v synthetic and 50%v Jp-8. as a result of these studies, air Force fueling systems were certified as compatible with a blended fuel containing up to 50%v Ft synthetic fuel and Jp-8 in March 2010.

2

Following the successful evaluation of aF i with F t derived synthetic fuels, the air Force began an evalua- tion of synthetic aviation fuel derived using a bio-based
2 feedstock and hydroprocessing techniques. Because of the similarities of this Hydroprocessed renewable Jet (H r J) and the F t fuels tested, the certification process was streamlined to include fuel wetted mate- rial testing as well as single element ei 1581 filtration testing. aFrl is finishing up on material testing using the same evaluation criteria used in the F t certifi- cation. additional elongation and tensile strength is being conducted on Buta- n materials found in fuel valve diaphragms. aFrl feels this additional testing is warranted due to the constant state of flex these diaphragms undergo during refueling operations. the filtration testing was modified to include single element testing using various combinations of military additives to determine if an additive, mixed with the blended fuel, would produce filterability results which varied from that seen in traditional J p-8. these reports are being evaluated.

to date, no variables have been seen which would preclude certification of aFi on a blended fuel containing up to 50%v HrJ synthetic fuel and Jp-8. Barring any unforeseen test results, aFrl expects air Force fueling systems to be certified on a blended fuel containing up to 50%v HrJ synthetic fuel and Jp-8 during the spring of 2012.

3. sustainability

3

  • 3.1 chapter summary

Meeting sustainability criteria is a crucial requirement for biofuels in aviation. reduction of greenhouse gas emis- sions through the use of sustainable biojet fuel is seen as a major contributor to meeting the aviation industry’s climate change goals. Various regulatory (eu reD, us rFs) and voluntary standards set sustainability require- ments for biofuels, the most comprehensive one being the one of the roundtable on sustainable Biofuels (rsB), which has recently started its certification activ- ities. the first certificates are expected to be issued in late 2011 or early 2012. two of these rsB certifi- cation efforts are described for Jatropha being grown in Brazil and in Mozambique. there are other sustain- ability certifications available, and the rsB described in this chapter represents just one example.

  • 3.2 introduction

sustainability is one of the most important requirements for alternative fuels in aviation, which is supported by all aviation stakeholders, including airlines, manufac- turers, and airports as well as national and international authorities. as a consequence of the experience with first-generation biofuels for other industrial applications, especially regarding the “food vs. fuel competition”, iata and various airlines have been promoting the application of appropriate sustainability criteria from the early times of aviation biofuels development.

Moreover, reduction of greenhouse gas (GHG) emis- sions is the major driver for the aviation industry to push for the use of sustainable biofuels. i n 2009 iata , together with the other global aviation stake- holders, established a set of high-level goals to limit and reduce aviation’s impact on climate change that includes the following:

  • Ê a cap on global aviation co 2 emissions (carbon- neutral growth) from 2020;

  • Ê a reduction in co 2 emissions of 50% by 2050 relative to 2005 levels.

the use of biofuels is expected to strongly contribute to the achievement of these goals. there are a number of biofuels from various feedstocks usable for avia- tion which typically achieve GHG emission reductions around 80% or better.

  • 3.3 Governmental regulations and sustainability standards

Both the eu and the us have introduced regulatory standards (renewable energy Directive (reD) in the eu, renewable Fuel standard (rFs) in the us) prescribing criteria that biofuels for industrial applica- tions have to meet in order to be eligible for incentives or to be counted towards a biofuel blend or volume mandate. in particular, specific GHG reduction thresh- olds are required by these standards. the aviation sector is not subject to obligations of using biofuels since aviation biofuels have been certified only recently and are not yet available in large commercial quantities.

in parallel to governmental regulations there are various voluntary standards for biofuel sustainability, normally with more comprehensive requirements that the regulatory ones. one example is the round- table on sustainable Biofuels (rsB), an international multi-stakeholder initiative coordinated by the ecole polytechnique Fédérale de lausanne (epFl), and which was the first institution to develop sustainability criteria for biofuels. Between 2007 and 2011, it set up a sustainability standard consisting of a compre- hensive set of environmental, societal and economic criteria. the sustainable aviation Fuel users Group (saFuG), an association of today 23 airlines, 3 aircraft manufacturers and a biofuel supplier (www.safug.org), considers the rsB standard as a reference. there are seven voluntary standards recognized by the euro-

pean commission for certification of biofuels under the european renewable energy Directive (reD),

the best known among them being rsB and iscc (international sustainability and carbon certification).

a comprehensive overview of biofuel regulations and both regulatory and voluntary sustainability standards can be found in the iata 2010 report on alternative Fuels.

unfortunately the different existing sustainability stan- dards do not only cover different criteria, but also use different methodologies to determine impact param-
3 eters such as lifecycle GHG emissions. reD, rFs and rsB use substantially different methods to account for the different sources of GHG emissions and to share them between co- and by-products; lifecycle GHG emission values determined according to these standards are thus not comparable. For aviation, due to its global and border-crossing nature, these diver- gent regulations make it difficult to make best use of incentives for biojet fuel. achieving harmonization or at least mutual recognition between the different stan- dards has thus been identified as an important need for a successful deployment of biojet fuel worldwide.

the following sections focus on the latest achieve- ments in establishing rsB certification as well as two practical examples of assessment of jatropha biofuel feedstock production in Mozambique and Brazil. Jatropha is one of the feedstocks that see aviation as a major customer for the future.

  • 3.4 rsB c ertification

the global rsB standard, which was described more in detail in the iata 2010 report on alternative Fuels, is applicable to all types of feedstock throughout the entire supply chain.

the rsB certification system was officially launched on

  • 23 March 2011 at the World Biofuels Market confer-

ence in rotterdam. this milestone was the culmination of the work accomplished by rsB members over the last four years, during which more than 120 organi- zations worldwide developed the standard through consensus and an open and transparent multi-stake- holder process.

on July 19, 2011 the european union recognized the rsB standard and certification system as a way to demonstrate compliance with the eu renewable energy Directive (eu reD), which was another key milestone for the rsB.

another important step forward for the rsB was the legal establishment of the rsB services Foun- dation, which has been legally incorporated in the

united states as a 501(c) 3 non-profit. rsB services Foundation will work closely with the rsB on the imple- mentation of the rsB standard. since July 2011, the rsB has received eight applications for certification and is working with a number of companies who are in the ‘pipeline’ for certification. the first certificates are expected to be issued towards the end of 2011 or in the first months of 2012.

the rsB is in close contact with members of the aviation industry, including airlines, biojet producers, aircraft manufacturers and other stakeholders, in order to work towards the production of sustainable and certified aviation biofuel.

in addition to building industry support, the rsB has started to work more closely with the auditing and verification community. around a dozen certification bodies around the world have indicated their interest in offering rsB auditing and verification services. the first certification body was awarded rsB accredita- tion in september (sGs) and a number of others will follow shortly.

in 2011 the rsB held three auditor training courses, in lausanne (april 2011), Mexico city (June 2011) and Kuala lumpur (september 2011). starting in January 2012 the rsB will move to an e-learning auditor training platform, in which course modules are

taken online, followed by a short face-to-face course. on-site training courses will be held throughout 2012 in different locations throughout the world.

in order to facilitate the implementation of the rsB standard for biofuels made from certain “end of life” products, the rsB secretariat is developing a policy for Municipal solid Waste (MsW), used cooking oil

(uco) and Wastewater used to produce biofuels. additional biofuel pathways that qualify for “end-of-life” status may be added in the future, when demonstrating upstream compliance for feedstock sources is not necessary or feasible.

Within the area of indirect impacts, the rsB secre- tariat is drafting a proposal on how to address indirect impacts of biofuel production in the rsB standard. this proposal will be informed by the results of the project “certification system for low indirect impacts Biofuels (ciiB)”, a collaboration project between rsB, ecofys, WWF international and several other partners. the rsB policy on indirect impacts will be discussed by the rsB membership and steering Board in 2012.

in september of 2011 the rsB organized, in collab- oration with Brazilian nGo 4 cantos do Mundo, an outreach on biofuels, sustainability and certification in the state of Minas Gerais in Brazil. the rsB hopes to organize more of such outreaches in the year to come to build capacity in the area of biofuels sustainability and certification in key biofuel producing regions of the world.

in addition, the rsB continues to collaborate with biofuel operators, governments, nGos and other organizations in the area of biofuel sustainability. the rsB is looking forward to 2012 as a year of growth and expansion for the organization.

  • 3.5 Field research – testing of the rsB social Guidelines and relevant Definitions in the c ontext of the novabra Jatropha project in c olatina, espirito santo, Brazil

the roundtable on sustainable Biofuels (rsB) aims to offer a “one stop” third party certification system to biofuels operators by covering different feedstock, different supply chains and offering certification for different markets. in november 2009, the steering Board of the rsB approved Version one of the rsB standard and certification system for use during a series of pilot tests in 2010. after several months of field testing in pilot projects, followed by a 2 months consultation period of rsB members and of the public, the rsB steering Board validated Version 2.0 in november 2010. in 2011 rsB began accepting applications for certifications. the rsB standard will now be regularly revised for improvements and adap- tations to new and relevant developments.

the rsB principles & criteria (p & cs) cover social issues which are critical for the long term sustain- ability of biofuels. these issues include local food security issues (covered in principle 6), how biofuels can contribute to local development (principle 5), how land rights and water rights are duly acknowledged (principle 9 & 12) as well as the involvement of stake- holders (principle 2) and labour and human rights

(principle 4). the rsB secretariat in cooperation with several world experts has now developed guide - lines to guide operators through the implementation of the social principles and has developed definitions for “region of poverty” (principle 5), “region of food insecurity” (principle 6) and “legitimate land dispute” (principle 12). these guidelines and definitions are now being tested in six different contexts (from small producers to large plantations, various crops) to evaluate their feasibility, appropriateness and prac- tical validity.

this field research will focus on the novabra Jatropha project in the region of colatina, espirito santo, Brazil. the project aims at the introduction of Jatropha as a non-food feedstock amongst small holders for the production of sustainable biofuels. its goal is to reach 25,000 hectares of Jatropha plantations in the next eight years, generating a new virtuous economic cycle in the communities engaged with the program. By 2011, it had already reached 1200 hectares with 480 families from rural settlements, coffee plantations, and cattle ranches. the state Government of espirito santo is giving full official support to this project by setting up a Jatropha Knowledge center in the region.

the

outcomes

of

the

field

research

will

be the

following:

 

1. results on the feasibility, appropriateness and practical validity of the definitions and guide- lines, based on the field research conducted in colatina, espirito santo, Brazil. 2. recommendations on the applicability of the standard to smallholders and the planta- tion model, as observed in the context of the novabra project.

these results will inform the revision of the guidelines and inform the discussion on the adoption of the rele- vant definitions. they will also provide useful insight into possible changes required in social principles during the preparation of Version 3 of the standard. as rsB aims to be accessible to smallholder, it will also provide substantial feedback on the possible need for adaptation or provision or further clarification to ensure the standard can be used by smallholders.

3

  • 3.6 sustainability assessment and GHG Balance of Jatropha in Mozambique

in a pilot project of the Jatropha alliance in Mozam- bique, the principles of the roundtable on sustainable Biofuels (rsB) have been directly applied to Jatropha
3 plantations on the ground. this project has demon- strated that Jatropha is able to justify its claim as a sustainable alternative to first generation biofuels. the project team reported that the rsB toolset works well in practice. the rsB standard is quite demanding in terms of data, striving for excellence in analyzing all sustainability issues in operations and planning. the project team concluded that rsB certification could be a challenge for organizations dealing with a large number of smallholder farmers. However, the rsB has confirmed it is addressing the issue of streamlining smallholder certification operations.

3.6 sustainability assessment and GHG Balance of Jatropha in Mozambique in a pilot project of the

Figure 5 – Jatropha plant.

in the second part of the study, Jatropha alliance and its partner sun Biofuels demonstrated that even under conservative assumptions on yields and other parameters, sun Biofuels produces a GHG savings of 48% compared to the local fossil equivalent. However there is a potential to save up to 73%, if the nitrogen fertilizer were to be substituted by organic fertilizer (e.g. Jatropha seed cake).

Finally, the study calculates the impact of land use change on GHG savings. if perennial Jatropha is grown on former cropland, this pushes the actual GHG savings to above 100%, due to the effects of carbon fixing. cultivating Jatropha on former annual crop- land or grassland savannah leads to a positive GHG impact, whereas cultivation on forest or dense scru- bland is not recommendable from a GHG perspective. the Jatropha alliance therefore strongly recommends not planting Jatropha on forest or dense scrubland. the final report and project toolbox are available to the

public online 1 .

it was also found that the required effort to achieve compliance varied significantly from principle to principle. an appraisal of the ease of providing docu- mentation, conducting assessments and gaining compliance was performed. the project resulted in a gap analysis on each company to identify where compliance with rsB was reached and where further efforts needed to be made. Based on the identified gaps, a company specific roadmap for rsB certifica- tion was developed. early results indicate that Jatropha production in Mozambique is well enough advanced to be certifiable according to the rsB standard.

1. www.jatropha-alliance.org

4. Economic Policy for Biojet Production

  • 4.1 Chapter Summary

If the production of biojet fuel is to attain sufficiently large volumes to meet the industry’s expectations for emissions reduction, there will need to be government programs in place to incentivize the construction of biofuel production plants. In the US, a reverse auction mechanism to promote cellulosic biofuels has been established but lack of funding to-date has constrained the impact of this mechanism. An announced invest- ment of $USD 510 million by the US Department of Energy has been directed towards the development of a domestic biojet fuel industry, and is designed to help overcome the risk of investing in biojet produc- tion. The European Commission has announced the European Biofuels Flight Path Initiative, which aims to achieve 2 million tons of biojet fuel in the European Market by 2020. Second generation biofuels derived from feedstock indigenous to developing countries provide a potentially viable commercial opportunity in the medium to long term but require further research and development. Two “pull” mechanisms for incen- tivizing biojet production are considered, a blend mandate and forward contracts.

  • 4.2 Introduction

In the economics chapter of last year’s report, the focus was on providing an overview on the economics of aviation biofuels as well as providing cost ranges for the FT and HEFA processes. This year it focuses on providing an analysis on a range of policy options that can be employed to promote drop-in biojet fuels. The chapter is split into two sections. The first section analyzes potential ‘push’ policy options that can be used to stimulate the advancement of aviation biofuels through research, development, demonstration and eventually deployment. The second section focuses

on analyzing ‘pull’ instruments that can be used to give demand certainty to aviation biofuel producers.

  • 4.3 Push Mechanisms

    • 4.3.1 Research and Development Funding

There are several programs that are currently in place to support research and development in aviation biofuels with most of these programs centered in developed countries. The US and the EU are most actively engaged in research and development of aviation biofuels, building on longer experience from automo- tive biofuel. Australia is also playing an increasingly important role. Among developing countries Brazil is clearly a frontrunner in automotive biofuels, in particular ethanol from sugarcane, and has started to undertake an increasing amount of research and development of aviation biofuels. Various consortia have under- taken research and development for aviation biofuels, which are again dominated by companies from US and Europe and include aviation fuel users, aircraft manu- factures, and refiners, as well as other participants of

the supply chain (see Chapter 5 for examples). While in the past years the focus has been on development and testing of the feasibility of biojet fuels, the current challenge, which requires much larger investment, is incentivizing the construction of commercial scale biojet demonstration and deployment plants.

  • 4.3.2 US Research & Development Programs

The

US

has

actively

supported

development

of

biofuel production including production incentives for cellulosic biofuels. Through the Energy Policy

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1. Reverse auctions refer to the competition between multiple sellers to offer the lowest price to a single buyer through an organized bidding process.

Act of 2005, an incentive program for production of cellulosic biofuels using reverse auctions 1 was estab- lished. The Energy Independence and Security Act of 2007 updated Renewable Fuel Standards (RFS2) to introduce explicit mandates for use of cellulosic biofuels but did not make changes to the reverse auction program. The RFS2 program is described in the 2010 IATA Report on Alternative Fuels in Chapter 4.5.1. The slow pace of the reverse auction program and the modest funding actually appropriated by Congress has led to this mechanism not being able to support the construction of demonstration projects
4 for cellulosic biofuels. The Energy Policy Act of 2005 allowed for USD 1 billion to be channeled through the reverse auction program but to-date the appro- priations to support the mechanism had only been about USD 5 million through the FY2008 budget of the Department of Energy (DOE). Under the FY2012 budget of the DOE, USD 150 million is proposed to support the reverse auction program. If these funds are appropriated, this mechanism could start making a meaningful contribution to achieving its objectives, which includes the acceleration of deployment and commercialization of biofuels as well as the delivery of the first one billion gallons of annual cellulosic biofuel production by 2015. Should the program be scaled up, it is critical that it specifically targets biofuels that meet the ASTM D7566 specification to ensure suit- ability for use in aviation.

The US government recognized that given the economic environment, significant start-up risks, and competitive barriers posed by established fuels, industry will not assume all the uncertainty and risk associated with providing a commercially viable production capability for advanced drop-in biofuels, including biojet fuels. To address some of these short- falls, the US government (through an MoU between the Department of the Navy, Department of Energy and Department of Agriculture) announced in August 2011 a funding pledge of 510 USD million, envisioned to be matched by the private sector, over three years to work with private industry to create advanced drop-in biofuels for the Department of Defense and private sector transportation throughout the US. The objective of the initiative is the construction or retro- fitting of domestic commercial (or pre-commercial) scale advanced drop-in biofuel plants and refineries that have the following properties:

The capability to produce drop-in replacement advanced biofuels meeting military specification at a price competitive with petroleum;

A geographically advantageous location with

ready market access; Results in no significant impact on supply of agri- cultural commodities for the production of food.

The MoU states that the US aims to attain enhanced reliability of fuel supplies through diversification to advanced drop-in biofuels in order to sustain US military capabilities through reducing its vulnerability to poten- tial disruption of crude oil supplies. The US needs to ensure that the pledged funding is delivered and other policy mechanisms, such as those employed through the Department of Energy’s loan guarantee program, further complement efforts to catalyze commercializa- tion of drop in biofuels.

  • 4.3.3 European Research & Development Programs

The European Commission, in close coordination with Airbus, leading European airlines and key Euro- pean biofuel producers, have launched the European Advanced Biofuels Flight Path Initiative, an industry wide initiative to speed up the commercialization of aviation biofuels in Europe. Through this initiative the aim is to deploy at least 2 million tons of biofuels per annum in aviation in the EU by 2020. Milestones to achieving that goal include the development, by 2015, of a reliable supply chain for certified sustain- able resources, the conversion of hydroprocessed vegetable oil (HVO) plants to HEFA plants to produce aviation biofuels and the commissioning of three plants producing lignocellulosic (FT) biojet fuel. By 2018, the aim is to commission an additional four plants producing FT biojet and at least two HEFA plants producing algae and microbe oil based biofuels. There are several compelling reasons that call for govern- ment support in the realization of these objectives, which include:

Market and financial risks are currently too high for

private investors; Technology risks are high at demonstration or early deployment stage;

Traditional energy technologies can have an advan- tage due to embedded capital and infrastructure.

An analysis of financing mechanisms under the frame- work of the Strategic Energy Technology Plan 1 by the Centre for European Policy Studies proposes some financial mechanisms through which the EU can support the implementation of the European Advanced Biofuels Flight Path Initiative; these include:

Incorporation of aviation biofuel projects as part

of the Risk Sharing Financial Facility (or estab- lishment of dedicated instrument) addressing bankable project for which the credit risk is perceived to be low or sub-investment grade. The budget for the new phase of this facility is expected to be 5 billion Euros from 2014-2020; The expansion of loan guarantee instruments

can be complemented with EU project bonds for specific late stage more mature long-term projects; Another source of funding could be the NER

300 program established through the Emis- sions Trading Directive. The program aims to support demonstration of low-carbon technolo- gies at commercial scale through co-funding at least 34 innovative renewable energy technology demonstration projects within the EU. It was estimated that such a program could provide 4.5 billion in co-funding and aims to leverage matching funds from the industry; The European Commission, through the EU 2020

Strategy, committed itself to bringing in innovative incentive mechanisms linked to the carbon market. The EC is in the process of securing technical support 2 to assist the commission in the develop- ment of an instrument in clean technologies with allowances for the EU Emission Trading Scheme. The incentive mechanism is envisioned to provide additional carbon allowances for innovative tech- nologies demonstration plants and existing best technologies deployment in industrial sectors. The EC is considering the establishment of an “Innovation/Technology Accelerator” under the EU ETS, which would reward early investors in top performing low-carbon technologies with rewarding them with additional allowances; EU Member States may choose to provide loan guarantees;

Other fiscal incentives such as low interest payment and equity capital.

No single mechanism on its own would appear to be sufficient to bridge the current cost gap between convention jet fuel and aviation biofuels. a combination of these mechanisms would need to be made available to enable commercialization of biojet fuel. Given the relative infancy of the industry, public partnership with private developers is essential for de-risking these investments. At the initial stage of demonstration, for the period leading up to 2020, there will likely be a need for greater equity or grant based financing from public sources to realize commercial scale in avia- tion biofuel production. The EU needs to leverage the mechanisms identified under the SET plan to bring to full implementation the European Advanced Biofuels Flight Path Initiative.

  • 4.3.4 Enhancing Production of Indigenous Second Generation Biofuels in Developing Countries

Second generation biofuels derived from feedstock indigenous to developing countries provide a poten- tially viable commercial opportunity in the medium to long term but require further research and devel- opment. In addition to not directly being part of the food supply, there is often higher potential for yield increases in these feedstock sources through genetic and agronomic improvements, which have mostly already been made in the past for species serving as food. While some research and development has already been undertaken, to realize the potential of these second generation biofuel sources, a targeted approach supporting research and development into increasing yields and other favorable properties within second generation feedstock sources that are preva- lent in developing countries is warranted.

The Consultative Group on International Agricultural Research (CGIAR) is a global partnership that unites organizations engaged in research for sustainable development with the funders of this work. CGIAR includes a consortium of fifteen centers that were established to lead, coordinate and support research. Partner agencies of CGIAR have already initiated technology oriented biofuels research but this has not been undertaken on a large scale. The gap in adequate research on second generation fuels indigenous to developing countries may be possible to address

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  • 1. http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm

  • 2. http://ec.europa.eu/clima/tenders/2011/213427/specifications_en.pdf

through creating a global research program by using CGIAR as a platform for undertaking and coordi- nating this research. To achieve scale, such a global research program would need to bring together main users of fuel across different industries (namely avia- tion and automotive), governments, existing research initiatives, agricultural researchers and others to launch a multi-year research program into developing higher value second generation biofuel production. Undertaking such research can help facilitate the scale up of production from these potential biofuel sources. CGIAR has a long relationship with develop-
4 ment institutions and governments, which frequently use findings from the latest research undertaken by CGIAR to help demonstrate and deploy new innova- tion in the agricultural sector in developing countries. Findings from the research undertaken could be used to scale up production of second generation biofuels with support from development institutions, potentially leveraging their expertise in sustainable development to demonstrate how to scale up such approaches in a sustainable way in developing countries.

  • 4.4 Pull Mechanisms

Some biofuel producers have raised concerns that one potential bottleneck in achieving commercialization and scale-up of biofuel production is due to insufficient demand for aviation biofuels. Until HEFA was certi- fied for aviation use in 2011, biofuel producers were hesitating to invest in aviation biofuels or even did not recognize aviation as a potential customer. With the start of commercial flights using biofuels this is now changing, but there are still strong concerns regarding the time period needed for aviation biofuels to become cost competitive with conventional jet fuel. To alleviate these concerns an appropriate policy signal can be used to provide certainty of demand for the fuel. There are several mechanisms that are advocated by policy makers, the two considered in this report are the blend mandate and the use of forward contracts.

  • 4.4.1 Blend Mandate

A blend mandate is a policy instrument that requires that a specified volume or percentage of biofuels be used within the fuel mix. This instrument is widely used in the automotive fuel sector. While such a mecha-

nism would provide some degree of certainty, the total demand would be determined by the level at which the mandate is set. Since in the medium term aviation biofuels can be produced through a fairly diversified and large number of producers a situation may arise where producers have uncertainty about the volume of the fuels that they may be able to sell under the speci- fied mandate. This would happen if producers don’t have information on planned production volumes of their competitors. Given the lack of current availability of supply, this is unlikely to happen in the immediate term. However, due to limited demand outside the scope of the mandate and risk aversion of investors to scale up production beyond the point of demand certainty can serve as an obstacle to scaling up production.

Another result of a blend mandate would be higher fuel costs for fuel users for the short to medium term. The mid-range of current cost estimates for FT and HEFA processes suggest that prices for aviation biofuels are roughly double the current jet kerosene price today. The blend mandate, if required at all fueling points, may also lead to local price spikes driven by difference in availability of aviation biofuels in different markets.

Potentially the most adverse impact from this policy would be that it could lead to stifling innovation. If biofuel developers mobilize their resources to bringing fuels to market without channeling resources to make aviation biofuels cost competitive with jet kerosene this could lead to the scaling-up of structurally flawed options that would never be cost competitive with conventional jet fuel. While the blend mandate may create opportunities for learning and innovation it may also lead to scale up in production at the expense of developing pathways that have potential to be commer- cially viable in the medium to longer term.

  • 4.4.2 Forward Contracts and Off-Take Agreements

Forward contracts or off-take agreements are already being used in the industry to promote the use of biojet fuels. However, these tend to be limited by geographic

location, quantity or scope. Purchases of biojet fuels to-date suggest that there is a significant premium being paid to producers but there is evidence that costs have potential to reduce significantly with scale as suggested by the recent contract made by the US Defense Logistics Agency. 1 Such contracts are

1. Sustainable Oils contracted to deliver aviation fuels (HRJ8) derived from camelina to the US Defense Logistics Agency at USD 66.60 per gallon for the 100,000 gallons but offered to provide an additional 100,000 gallons at price of USD 34.9 per gallon. The prices should be considered in the context of volumes delivered in R&D quantities and are far from being competitive with jet kerosene, but nonetheless suggest significant economies of scale.

important in incentivizing learning and stimulating the aviation biofuels market. They can prove to be impor- tant sources of revenue for aviation biofuel producers that are involved in research and development of biofuels, particularly at the development stage.

An overarching framework contract that sets out the parameters under which industry would be able to purchase aviation biofuels can complement short and medium term agreements and create large scale demand while sending the appropriate price signal over the longer term. Given the cost advantage of conventional jet fuel, it is unlikely that such a contract will be called upon in the short-to-medium term but it would nonetheless be important in setting a price floor for aviation biofuels. The forward contract would need to address the following parameters:

Fuel specification: The contract would indicate that the fuel purchased would need to be from a qualified fuel and meet the technical specifications under the ASTM agreed criteria as well as a set of sustainability criteria according to one of the regulatory or voluntary standards (see Chapter 2 for specifications).

As indicated earlier, there are two processes (FT and HEFA) that are already approved for use in commer- cial aviation. However, the framework contract can leave open the possibility of purchasing other types of fuels so long as they meet the existing or future ASTM specification for approved fuels. By keeping the possi- bility to purchase fuel developed from new processes or accepted specifications the forward contract would not disadvantage any future process or specification that may be developed that is capable of meeting the needs of commercial aviation.

Meeting sustainability criteria according to regulations in force (e. g. EU RED) is a prerequisite for benefit- ting from specific public incentives. Meeting voluntary sustainability standards such as the RSB can in addi- tion be used for corporate responsibility purposes.

The price could be formulated through the use of several inputs, which include:

Price of conventional jet fuel: Under the framework contract, increases in the price of conventional jet fuel above a certain threshold would result in equivalent increases in the price of aviation biofuels. If govern- ment support is mobilized, a floor price for jet fuel can also be set, for example 20% below current market prices for jet kerosene. In the event of a fall in the price of conventional jet fuel below the specified level, a government support mechanism would cover

the price differential between the set floor price and the price of conventional jet fuel. Such a government support mechanism would only be called upon when and if the price of conventional jet fuel in the future falls more than the specified amount, for example 20% below the current prices. Oil prices are forecast to rise over the foreseeable future but such a mechanism can remove downward price risk from movements in conventional jet fuel for aviation biofuel producers. It would also allow aviation biofuel producers to benefit from upside movements in conventional jet fuel prices. Drops in prices of oil products can be caused by short term surges in supply or slumps in demand, which would be very disruptive to a nascent industry trying to mobilize capital for long term investment.

Price of Carbon: Another component that can be integrated into the price of aviation biofuel is the price of carbon. Prices for carbon vary significantly from one regulatory scheme to another, which can create unequal demand for carbon assets as well as high variability in prices. Current prices for allowances under the EU ETS are around 15USD per ton of CO 2 which, if applied, would provide an incentive of about 3.5 cents USD per liter of aviation biofuel or roughly 5% above conventional jet fuel prices. Prices for EUAs are forecast (i.e. Bloomberg New Energy Finance) to increase significantly under phase III of the EU ETS, with high-end estimates indicating rises to about 45 USD in 2015 and about 75 USD 2020, which would translate to an additional incentive for avia- tion biofuels of 10.5 cents USD and 17.5 cents USD per liter in 2015 and 2020 respectively. This would likely still represent an insufficient incentive compared to the cost advantage enjoyed by conventional jet fuel in the medium term. In addition, as noted earlier, there is significant uncertainty in the price forecasts of carbon assets within a regulatory scheme as well as across different schemes, which further contrib- utes to price uncertainty. In this context, it may be appropriate to consider policy proposals that policy makers have put forward in the context of promoting demonstration of carbon capture and storage (CCS) facilities. In considering policy options for promotion of CCS to encourage rapid commercialization several proposals put forward by policy makers have included allowing multiple crediting for CO 2 captured during the first few years of a regulatory regime. For example, incentives for CCS demonstration are detailed in the America’s Climate Security Act of 2007 also known as the Lieberman-Warner bill, which was approved by the Senate Committee on Environment and Public

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Works but failed to clear the Senate over concerns that it would damage the economy. The bill indicated that a bonus allowance adjustment factor should be applied that starts with a bonus multiple of 4.5 in 2012 gradually decreasing to a bonus multiple of 0.5 in 2039 for each metric ton of carbon emissions avoided through capture and geologic sequestra- tion of emissions. A similar incentive mechanism was also proposed by the Waxman-Markey bill as well as in other contexts, including by policy makers in Europe, Canada and other parts of the world. Further assessment may be warranted whether the approach
4 of incentivizing aviation biofuel use through multiple crediting of CO 2 reduction would be appropriate for use in the aviation industry during the early stage of aviation biofuels deployment, for example until 2020. Contexts where such an approach may be considered could include the industry’s climate change strategy or other emission trading schemes, such as the proposed inclusion of aviation under the EU ETS. The existence of such an incentive would enable airlines to pay a higher premium for use of aviation biofuels, which can contribute to their commercialization.

Quantity: a key advantage of the framework contract is that it is able to offer a premium price for avia- tion biofuels while providing a signal for large scale demand. Assuming a technically feasible blend of 50% of aviation biofuels with conventional jet fuel, the price premium offered would be on almost 40 billion gallons of aviation biofuels in 2015. Constraints on the supply side would prevent the uptake at such levels but nonetheless the forward framework contract would send a premium price signal for half of the industry’s fuel forecasted consumption. While not a concern in the immediate future, in the medium to long term it may be important to also consider any local surges in supply of aviation biofuels that could limit uptake at a particular site due to blend threshold constraints. In this context the contract could include provisions for the transportation and market access of the produced aviation biofuels.

5. stakeholder initiatives

  • 5.1 chapter summary

this chapter gives descriptions of the following wide- scope biojet projects that have been undertaken by groups of stakeholders:

  • Ê aireG is a German association of 25 organiza- tions that is focusing on five working groups: provision of feedstock, technologies of fuel production, fuel utilization, quality and certifica- tion, and sustainability;

  • Ê in the us, the Defense logistics agency is purchasing biofuels for the army, navy, and air Force who are certifying their aircraft for using these new fuels;

  • Ê also in the us, the Farm to Fly program was initi- ated u.s. Department of agriculture (usDa), air transport association of america, inc. (ata) and the Boeing company (Boeing), and aims to accelerate the availability of a commercially viable sustainable aviation biofuel industry in the united states, increase domestic energy security, establish regional supply chains and support rural development;

  • Ê in Brazil a sustainable biojet program involving multiple local stakeholders aims to study feed- stock, logistics, industry, sustainability, and funding through a series of pilot programs already in operation;

  • Ê sWaFea is a european program that spent the last two years investigating different biojet pathways and analyzing policy, economic and environmental matters. amongst other recommendations, the sWaFea report proposes reinvesting some of the funds collected by member states under the eu ets into biojet production plants;

  • Ê caaFi is a us-based program responsible for significant accomplishments in alternative fuel certification and deployment. caaFi played a leading role in the creation of the Farm to Fly program, as well as several other initiatives.

    • 5.2 aireG – the new German c entre of c ompetence on aviation Biofuels

in Germany 25 organizations have come together this year to form a unique association. aireG – aviation initiative for renewable energy in Germany – strives to gain a truly all-encompassing perspective on the field of aviation biofuels. aireG believes that biomass production, conversion and distribution have to be opti- mized in order to achieve a sufficient supply of biofuel at fair prices within a reasonable time. Following that

objective aireG is bringing together companies and organizations from biomass producers to airlines, from aircraft manufacturers to airports and from universities to consulting firms. this broad spectrum will enable aireG to connect know-how across the entire value- creation chain and to act as a catalyst for sector-wide progress at the same time.

as a nonprofit organization aireG’s membership is open for all parties willing to contribute to furthering

the common cause of establishing sustainable ways to introduce aviation biofuels. aireG is taking into account that there are no national solutions in this field; therefore aireG is inviting companies and orga- nization from around the globe to join the effort.

aireG’s comprehensive approach is further empha- sized by the set-up of our working groups that are shedding light on the specific aspects of how to imple- ment aviation biofuels on a large scale.

1. starting with topics concerning the “provision of Feedstock”, aireG experts are comparing different types of crops regarding their respec- tive benefits, detecting adequate regions for mass-production and assessing the sustain- ability for all options of feedstock provision.

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  • 2. With the assumption that Jet a 1 will remain the standard aviation fuel and drop-in synthetic fuels are the way to usher in a new era, an aireG team is working on “technologies of Fuel production”. critical issues are to ensure the quality of biofuels, to identify the most efficient conversion process and to establish a roadmap for extensive distribution.

  • 3. in “Fuel utilization” aireG aims to verify that aviation biofuels will not require adaptation of fleet or infrastructure. We are also looking into assessing the future demand in Germany and beyond in order to determine the feasibility of current emission reduction goals.

  • 4. the “Quality and certification” working group will ensure that the largely self-regulated stan- dardization is providing for sufficient transfer of know-how to new market participants. also, this group will be concerning itself with assuring standard compliance of biofuels and assisting during certification of new aviation biofuels.

  • 5. on top of all that rests the question of “sustain- ability”, the objective of the fifth working group. this group will be contributing to implement and further develop sustainability criteria along the value-creation chain. By doing so, it will be able to evaluate different incentive systems for emission reduction and to identify research requirements and needs for political action.

after one year of progress, aireG’s findings will be presented and more input requested during a full-day international conference program on aviation biofuels during the 2012 Berlin air show.

  • 5.3 us Defense logistics agency (D la) energy Biofuels initiatives

the Military services along with Dla energy are currently involved in multiple initiatives to support the certification and commercialization of alternative aviation fuels. alternative aviation fuels serve critical needs for the country and the Department of Defense including increased energy security through decreased petroleum consumption, enhanced use of domestic resources, reduction of greenhouse gas emissions, and establishment of a larger fuel supply base in order to fulfill consumption needs.

Dla energy has supported the services in their certifi- cation efforts through numerous procurement actions. During 2007 and 2008 Dla energy awarded three contracts for 730,000 gallons of Fischer tropsch fuels derived from both coal and natural gas feed- stocks, fulfilling the test quantities required by the air Force for certification. in 2009 and 2010 Dla energy established seven contracts totaling 800,000 gallons

for delivery of hydrotreated renewable (Hr) Jp-8, Jp-5 and F-76 for air Force, army and navy certifi- cations programs. these fuels were derived from a variety of feedstocks including camelina, tallow and algal oil. additional work underway involves procure- ment of HrJ-5 and Hr F76 fuels in support of the

navy’s “sail the Great Green Fleet” initiative. a Dla energy solicitation recently closed on august 16, 2011 for procurement of 100,000 gallons of HrJ-5 and 350,000 gallons of Hr F76. Delivery of the fuel will take place by May 1, 2012 to puget sound naval shipyard where it will be blended with its petroleum counterparts and used to demonstrate a Green strike

Group. Most recently Dla energy awarded a contract for 11,000 gallons of aviation fuel derived from the dehydration and oligomerization of alcohols. this effort supports the next step in the air Force’s alterna- tive fuels certification program which aims to certify alcohol to Jet (atJ) fuels.

For the next step, Dla energy is focused on bridging the gap between certification and commercial scale production by supporting a variety of demonstration programs and initiatives through partnerships with other government organizations and industry. these efforts allow for a competitive industry, ensuring the military has a supplier base capable of producing operational volumes in order to meet their future goals. the air Force’s goal is to be prepared to cost compet- itively purchase 50 percent of its domestic aviation fuel requirement from an alternative source by 2016. the navy’s goal is to satisfy 50 percent of all energy requirements with alternative sources by 2020.

to help foster the growth of production capacity, D la energy and the air transport association signed a strategic alliance for alternative aviation fuels on March 19, 2010. this will leverage the larger require- ments of the commercial airlines with the financial stability of the government, incentivizing commercial financing for the alternative fuels industry.

in addition, Dla energy is currently involved in the Green initiative for Fuels transition pacific, which is a working group of over 30 member organizations and commands, co-led by united states pacific command and the united states Department of the navy. the group aims to purchase and use cost- competitive domestically produced advanced biofuels by 2018 to displace at least 25 percent of the fuel used by the Department of Defense in Hawaii. the estimated requirements for aviation and marine diesel fuels in Hawaii are 78,550,000 gallons of Jp8, 7,180,000 gallons of Jp5, and 42,250,000 gallons of F76.

the pacific northwest is another area of promise for the commercialization of alternative energy. D la energy currently participates in the Farm to Fly (detailed in section 5.4) and sustainable aviation Fuels northwest (saFn) initiatives, designed to bring together aviation biofuels chain stakeholders with the goal of providing fuel to the pacific northwest. a regional analysis of feedstocks, conversion tech- nologies, logistics and environmental impacts has recently been completed by saFn detailing some of the more promising opportunities for the region.

lastly, Dla energy is providing technical and contracting support to the Doe, navy and usDa Biorefineries program which aims to partner with industry to create robust domestic production for advanced drop-in biofuels. it is envisioned that two to three bio-refineries, each capable of producing in excess of 10 million gallons of advanced biofuels by 2016, will result from the initiative. in support of the program Dla energy anticipates potential award of fuel contracts to the biorefineries for delivery of military grade alternative fuel blends.

Dla energy has encountered a variety of hurdles during the alternative fuel procurement process, both in certification and commercial volumes. Major industry concern includes the availability of feedstock and inter- ruptions in supply. this stems from uncertainty due to harvest quantities and weather and environmental conditions, which may unexpectedly limit the amount of feedstock available to a supply during a given time- frame. other concerns include lack of crop insurance for many popular biofuels feedstock candidates such as camelina.

long term contracts and off-take agreements are another pertinent issue. Discussions with industry have revealed a need for 10 year minimum supply contracts with a preference for up to 20 years. the contracts and off-take agreements are vital for producers to gain financing from capital investors. this is of concern because currently Dla energy is limited to five year contracts with up to and additional five option years and it has been conveyed the options years hold little to no value when attempting to gain financial backing. several efforts have been made by Dla energy to gain authority to award longer term contracts with some progress being realized with each attempt. a revised legislative proposal has recently been submitted and there is hope for long term contracting authority to be granted sometime in 2013.

environmental sustainability challenges, such as green- house gas emissions, water use, land use, particulate emissions, nutrient depletion and competition with food have also come to the forefront of the biofuels discussion. Greenhouse gas emissions are particu- larly important to Dla energy because of mandates by section 526 of the energy independence and secu- rity act (eisa) of 2007. this regulation requires the life cycle greenhouse gas emissions of government- procured alternative fuels, other than for r & D testing, be less than or equal to that of conventional petro- leum. currently, Dla energy is working with other government agencies, academia and commercial industry through the commercial aviation alterna- tive Fuels initiative (caaFi) environmental group, to develop guidance and compliance mechanisms for lifecycle greenhouse gas emission regulations like section 526 of the eisa . in april of 2009, the air Force research laboratory (aFrl) published a docu- ment titled, Framework and Guidance for estimating Greenhouse Gas Footprints of aviation Fuels”. this document provides methodologies and modeling guidance for calculating the lifecycle greenhouse gas emissions of alternative aviation fuels. subsequently the group authored a case study “life cycle Green- house Gas analysis of advanced Jet propulsion Fuels:

Fischer-tropsch Based spK-1 case study” to further the guidance in this area of research. Future work will include comparisons of existing lifecycle analysis models and metrics and an eventual mechanism which can be used for section 526 eisa compliance. Work has begun to address mechanisms for evaluating other environmental sustainability indicators beyond greenhouse gas emissions, but much more needs to be accomplished in terms of lifecycle guidance, base- line comparisons and regional impacts.

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through partnerships across the biofuels stakeholder value chain, the hope is to help the alternative fuels industry grow into a strong supplier base. Dla energy could then continue doing what we have done for decades: buying fuel for our customers, no matter how the product may have changed.

  • 5.4 the united states “Farm to Fly” initiative

in July 2010, the u.s. Department of agriculture (usDa), air transport association of america, inc. (ata) and the Boeing company (Boeing) signed a resolution memorializing their commitment to work together on a “Farm to Fly” initiative “to accelerate the
5 availability of a commercially viable sustainable avia- tion biofuel industry in the united states, increase domestic energy security, establish regional supply chains and support rural development.” 1 although these organizations already were working together under the commercial aviation alternative Fuels initiative ® (caaFi), they had determined that an even more focused effort would be needed to further align u.s. biofuels agricultural policy – which up to then had almost entirely been focused on the production of biofuels for automobiles and trucks – to provide opportunity for farmers and fuel producers to generate feedstocks and fuels for aircraft.

While the usDa , ata and Boeing remain the drivers of Farm to Fly, the coalition has been expanded to include the u.s. Department of energy (Doe), the Department of transportation (Dot) and the Depart- ment of Defense (DoD). the Farm to Fly working team focuses both on existing government authority and private initiatives and on areas that may require additional rulemaking, statutory changes, govern- ment funding or private investment to align u.s. rural development and biofuel agricultural policy to promote the commercial-scale production of sustainable feed- stocks and the development of an aviation biofuel production and distribution supply chain.

With respect to existing programs, the Farm to Fly working team focuses on meeting the directive in the 2008 u. s . “Farm Bill” that states that u. s . programs aimed at energy crops should be equally available for air transportation fuels as for ground transporta- tion fuels. 2 accordingly, the Farm to Fly working team has been working to make aviation fuel feedstocks and production eligible for existing u. s . alternative energy programs, such as the Biorefinery assistance program (Bap), Biomass crop assistance program (Bcap), and the u. s . crop insurance program. the Farm to Fly working team also is working to demon- strate a sustainable supply chain, with a recent pilot project, sustainable alternative Fuels northwest, assessing and reporting on the sustainable produc - tion of biomass, collection and delivery of feedstocks, crushing and preparation, process technologies for aviation alternative fuels and co-products, and blending and delivery of resulting fuels to end-users at airports.

a key goal of the Farm to Fly initiative is also to marshal new and existing funding and mechanisms to prove that commercial-scale production of alternative avia- tion fuels is possible and commercially sustainable. the intent is to “jump start” this industry and build the necessary bridge to a future in which the industry is entirely funded by private capital. the 2011 announce- ment by the usDa , Doe and u.s. navy that they plan to invest up to $510 million over three years in a public-private partnership to produce advanced drop-in aviation and marine fuels is a significant step toward meeting this goal.

While significant work lies ahead, the Farm to Fly initia- tive is enabling aviation to more fully participate in the supply chain essential to making alternative aviation fuels a reality.

  • 1. http://www.airlines.org/energy/alternativeFuels/Documents/FarmtoFlyresolution071410.pdf

  • 2. conf. rpt. 110-627, on H.r. 2419; p. 911, May 13, 2008

  • 5.5 the Brazilian Biojet Fuel platform

From the initial business concept presented last year, the Brazilian Biojet Fuel platform is bringing together additional stakeholders to structure and implement an integrated biojet fuel value chain in Brazil focused on

three key units: the sustainable Multi-Feedstock unit, the logistics unit, and the Biorefinery unit. inocas will advise on the rsB compliance issues, Quinvita will supply technology and planting material for Jatropha projects, cnaGa will integrate logistic systems, and santiago advisors will provide project management and financial advice (see Figures 6 and 7).

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Figure 6 – schematic showing contributors’ roles in the Brazilian Biojet Fuel platform. the six main areas of focus are shown along the top, with the three phases of feedstock development along the bottom, and the advisors on either side.

5.5 the Brazilian Biojet Fuel platform From the initial business concept presented last year, the Brazilian

Figure 7 – the five modules of the Brazilian Biojet Fuel platform.

  • 5.5.1 the sustainable Multi-Feedstock unit

the strategic mission of this unit is to deal with the major challenge of providing competitively priced sustainable feedstock to the platform, respecting the sustainability criteria of rsB, in the volume demanded by the carbon neutral Growth (cnG) goals of iata .

competitively priced sustainable feedstock can only be achieved if the right planting material (high yield productivity, disease resistant, etc.) is made available

to farmers, with adequate financing mechanisms, to foster an energy and food program, envisaging both food and energy security.

therefore, much emphasis at this initial structuring phase of the integrated biojet fuel value chain is being placed on a Jatropha research and development under a public-private partnership (ppp) with embrapa agroenergia, the foremost research institution of the Brazilian Ministry of agriculture (Mapa). this means coordinating a Brazilian research network amongst the institutions shown in Figure 8.

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Figure 8 – Map showing the Brazilian Ministry of agriculture institutions engaged in relevant research activities.

as part of the multi-phase feedstock program, the platform is undertaking the domestication issues for Jatropha, Macauba, Dende, Babassu, and adaptation of camelina as a winter crop to the warmer climates of Brazil.

several advances have been made in the Brazilian Jatropha domestication program, including better understanding of the plant physiology, pruning tech- niques adjusted to the plant physiology, mechanized harvesting, seed cake detox, etc. pan american genetic material exchange has been led by curcas Diesel Brazil, Global clean energy, Quinvita and sG Fuels; each offering their material and services in the Brazilian market. With cooperative agreements between aBppM and pan american research insti- tutions, one can expect that adequate initial planting

material will finally be available for the scaling up of Jatropha plantations in Brazil next year.

an agreement has been reached with longido to set up the value chain to explore the potential of 18 million hectares of native babassu forest, based on present brownfield in Maranhão, and feasibility check of the value chain for biomass, and oil.

procedures are underway for the introduction of camelina in Brazil as a winter crop to soy, leveraging on the existing soy value chain.

Macauba and Dende will be the next cultures to be addressed by the research program of embrapa agroenergia with the Brazlian Biojet fuel platform, uniting efforts for a comprehensive research and development program.

  • 5.5.2 the logistic unit

Harvest logistics, consolidation and crushing centers, silos and tank farms, and integrated regional inter- modal transportation networks are being planned for each production hub. the first phase will deal with the southeastern Hub, to serve the major markets of são paulo and rio. Final integration assurance with major airport logistic operators will be addressed once the value chain is in place.

5.5.2 the logistic unit Harvest logistics, consolidation and crushing centers, silos and tank farms, and integrated

in the first phase, sustainable feedstock will be exported while awaiting the local biojet fuel production plant to be fully operational.

  • 5.5.3 the Biorefinery unit

Based on the production hub concept, the platform is finalizing the site and technology selection to install a pilot plant in the southeastern region to supply biojet fuel to the major airports of são paulo and rio de Janeiro in Brazil. presently undergoing a tech- nical evaluation, the pilot plant will be co-located with a major operating chemical company to reduce the time to market, and to optimize the production costs for final competitive pricing.

  • 5.6 sWaFea: a european study on the Feasibility and impact of the introduction of alternative Fuel in aviation 1

5.6.1

Background

committed to taking an active role in climate change mitigation and in the promotion of secure and sustain- able energy sources, the european commission’s Directorate General for Mobility and transport initiated the sWaFea study in February 2009 to investigate the feasibility and impacts of the use of alternative fuels in aviation. alternatives to crude oil-based kerosene are seen as an important component in the efforts to reach the target set by the european Directive for renewable energy (reD) to introduce 10% of renewable energy in transport by 2020. it’s also an important develop- ment with view to the introduction of aviation in the ets from 2012.

the study aimed to develop a comparative analysis of different fuels and energy-carrier options for aviation

on the basis of current knowledge, and to propose a possible vision and roadmap for their deployment in order to facilitate and support future policy decisions.

the sWaFea study, which delivered its findings and recommendations in april 2011 2 , encompassed all aspects of the possible introduction of alternative fuels

in aviation using a highly multidisciplinary approach. this included technical, environmental, and economic assessments. the study was carried out under the leadership of the French aerospace research lab onera , in cooperation with a consortium of twenty partners 3 bringing together european research orga- nizations and representatives of virtually every major stakeholder in the aviation fuel chain.

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  • 1. The SWAFEA study was funded by the European Commission’s Directorate General for Mobility and Transport under contract TREN/ F2/408.2008/SI2.518403/SI2.519012. The contents or any views expressed herein have not been adopted or in any way approved by the European Commission and should not be relied upon as a statement of the Commission’s or DG Mobility and Transport’s views.

The contract was carried out by a team led by ONERA and gathering 20 partners from industry, airlines and research. Statements presented here represent a collective work and a general agreement on the high level conclusions derived from parallel works carried out in the frame of the study. As such, it does not engage the individual responsibility of each of these organizations and corporations on any and all the topics covered by the study.

  • 2. sWaFea final report is available on www.swafea.eu

  • 3. sWaFea partners : airbus, airFrance, altran, Bauhaus luftfahrt, cerfacs, concawe, Dlr, eaDs-iW, embrarer, erdyn, iata, ineris, iFpen, onera, plant research international (Wur), rolls-royce uK and rolls-royce Deutschland, shell, snecma, university of sheffield

  • 5.6.2 summary of sWaFea report

although the aviation sector has a good track record in reducing its environmental impact through efficiency gain, it is highly unlikely to reduce or even stabilize its emissions through this means alone.

Biofuels present real potential for reducing GHG emis- sions, provided that the feedstock production step is well mastered. However, even if the Ft and FeFa pathways are available in the short term to produce jet quality fuels, they lack the necessary cost-compet- itiveness with conventional jet fuel needed to promote their development, even with the exemption of biofuels from the eu ets. in addition, biomass availability and production development appear as the critical bottle- necks for biofuel ramp-up and for achieving emissions
5 reductions targets.

Both biomass availability and economics provide evidence of the need for more efficient processing pathways with higher transformation yields and reduced costs, and for new sources of feedstocks. in that field, algae today appear as a promising focus of research. a higher economic efficiency is also expected from sugar-derived hydrocarbons pathways.

Biofuels provide a solution for aviation emissions reductions and also for the diversification of fuel supply, but achieving significant reduction will need time and a determined policy, meaning also that aviation will have to offset part of its emissions beyond 2030. initiatives have to be decided immediately to kick off the process and generate the learning and technological progress which is required for a faster future deployment in order to achieve emissions reductions targets.

Defining a small minimum goal for biofuel introduc- tion in aviation by 2020 could be a first step on which policy measures suitable for triggering a start-up of the production could be based.

no single measure appears able to simultaneously achieve this production target, a significant involve- ment of multiple stakeholders in biofuel production, and the emergence of diversified technologies. the limited profitability margin of airlines is also to be kept in mind, considering their limited capacity and willingness to pay a premium for biofuel, especially in situation where policy measures could induce competition distortion. a combination of measures is probably preferred. in particular a global plan pushing for the emergence of a number of “end-to-end” projects addressing the complete production chain from feedstock to fuel could be a way to reach a minimum production target while favoring technology development and diversity along

with the development of energy biomass production. such a plan could possibly be funded by the revenue of ets auctions. to complement it, a quota mandate policy on fuel production could be investigated, in a “push and pull” approach that guaranties that the deployment occurs and also may offer possibilities to distribute the funding over a wider range of payers.

in all cases, early deployment should be partnered with an intensification of the research into innovative processes and feedstock, and should be considered in synergy with other sectors and in particular with the automotive industry.

5.7

caaF i

caaFi evaluates alternative jet fuels in teams focused in four areas: fuel certification and qualification, envi- ronment, business and economics and research and development. Key accomplishments include the following:

  • Ê approval by astM international of synthesized hydrocarbon jet fuels (D7566 specification HeFa annex);

  • Ê initial pre-purchase agreements announced with three alternative-fuel suppliers (altair Fuels, rentech, solena);

  • Ê strengthening and expanding the strategic alli- ance between airlines (via ata) and the Defense logistics agency (Dla), creating a single market for alternative jet fuel;

  • Ê over 60 energy suppliers engaged in development and deployment discussions;

  • Ê raised the commitment of aviation as a priority with respect to biofuel deployment by u.s. government;

  • Ê Farm to Fly resolution between ata , Boeing and usDa to accelerate commercial availability of sustainable aviation biofuels in the united states.

    • 5.7.1 caaF i Goals

caaFi’s main goal is to promote the development of alternative jet fuel options that offer equivalent levels of safety and compare favorably on cost with petro- leum-based jet fuel while also offering environmental improvement and enhanced security of energy supply for aviation. since its inception, caaFi has sought to improve energy security and environmental sustain- ability for aviation by exploring the use of alternative jet fuels. together, these stakeholders are leading the development and deployment of alternative jet fuels for commercial aviation.

in 2006 fuel became the single largest component of u.s. passenger airline operating costs for the first time in history. concern about the environment impacts, particularly greenhouse gases emissions, associated with all sectors of the economy is rising and avia- tion is no exception. While u.s. commercial aviation accounts for less than 2 percent of u.s. greenhouse gas emissions, it drives more than 5 percent of u.s. gross domestic product and more than 10 million u.s. jobs. secure and sustainable fuel sources are essential for its continued prosperity.

aviation’s scope is international and it is highly integrated in its fuel supply chain. also, because commercial aviation is particularly adept at aligning and coordinating its stakeholders, the industry is particularly well positioned to pursue alternative fuels.

  • 5.7.2 Function and Focus

caaFi primarily serves as a forum for exchanging information among stakeholders and coordinating the variety of efforts necessary to support development of alternative aviation fuels. an important goal and result of its activities is educating stakeholders like govern- mental agencies, fuel producers and others outside the industry about commercial aviation and its unique needs. caaFi seeks to fulfill its goals in a variety of ways, including convening technical workshops, partic- ipating in domestic and international aviation, energy, and financial industry forums and communicating with the news media. the four caaFi teams – Fuel certi- fication and Qualification, environment, Business and economics, and research and Development – meet regularly to share progress, identify gaps and hurdles, determine next steps for the earliest possible devel- opment and deployment of jet fuel alternatives, and expand global engagement. the goals and activities of caaFi’s four teams are summarized below:

  • Ê Fuel certification and qualification – to ensure the safety of any alternative fuels given the demanding environment posed by aviation operations, partici- pants are creating a new jet-fuels approval process via the astM international standard-setting body. Fuel approval will enable the safe use of alterna- tive jet fuels and assure manufacturer, user and regulatory confidence in them;

  • Ê research and development – to improve under- standing of the broad range of new fuel-production technologies and feedstocks that can be applied to aviation, participants are sharing analyses and identifying and coordinating research activities;

  • Ê environment – to ensure the environmental impacts of alternative fuels are evaluated in a consistent, scientific manner, participants are working to assess emissions that affect local air quality and greenhouse gas emissions on a full life cycle basis, and to identify and develop standards for assessing sustainability criteria;

  • Ê Business and economics – to facilitate the deploy- ment of alternative jet fuels in the marketplace, participants are connecting fuel producers and consumers, evaluating the business case for use of alternative jet fuel, and identifying opportunities for deployment.

caaFi participants (including iata) meet regularly to update the state of alternative jet-fuel developments in these areas, identify opportunities, gaps and hurdles and decide on next steps required in the research, development and deployment process. caaFi held its most recent General Meeting on nov. 30-Dec. 1, 2011.

2011 Accomplishments

  • Ê approval by astM international for synthesized hydrocarbon jet fuels (D7566 specification HeFa annex);

  • Ê initial pre-purchase agreements announced by several u.s. airlines, plus air canada and united, with solena Fuels in northern california;

  • Ê updated Fuel readiness level documentation;

  • Ê completed aviation fuel-specific greenhouse gas life cycle analyses (lcas) for multiple fuels;

  • Ê updated and streamlined unified research and development road maps to inform investment decisions by the public and private sectors;

  • Ê played valuable roles within the crc, iata and astM international in support of alternative fuels development;

  • Ê strengthened the strategic alliance between airlines (via ata) and the Defense logistics agency (Dla), creating a single market for alter- native jet fuel;

  • Ê over 60 energy suppliers engaged in develop- ment and deployment discussions;

  • Ê Facilitated alternative-fuel development projects in more than 20 states;

  • Ê Vastly expanded an ongoing joint outreach program, to the aviation community, with u.s. cabinet-level participation at the paris interna- tional air show;

  • Ê supported outreach to airports and a variety of airport related projects through the involvement of airports council international-north america (aci-na);

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  • Ê expanded the concept of aviation as a priority with respect to biofuel deployment by u.s. government;

  • Ê continued to support the Farm to Fly initiative between ata , Boeing and usDa aimed at accel- erating commercial availability of sustainable aviation biofuels in the us and helped facilitate the announcement of Federal matching funds from usDa , Department of energy and u.s. navy supporting Farm to Fly;

  • Ê Won the prestigious 2011 Washington airports task Force Williams trophy award.

    • 5.7.3 Flying into the Future – the Flight c ontinues

  • 5 caaFi continues to build upon on the foundation of the past five years by accelerating the development of viable alternative aviation fuels. caaFi is supporting the progression of parallel alternative aviation fuel pathways through the astM international approval process. in 2011 and 2012 caaFi and astM continue to be presented with a growing number of focused fuel producers employing a number of new technologies. in previous years, the astM addressed a single tech- nology at a time; first was Fischer-tropsch and second was HeFa (HrJ). By engaging astM in a parallel process approval strategy, caaFi and astM provide a means of working toward simultaneous approvals of emerging fuel technologies. the end result will be a wider array of alternative fuels which will be brought to the market place sooner while maintaining the integ- rity of the astM process. caaFi remains committed to working with public and private-sector participants, caaFi will continue to facilitate the sharing of informa- tion and coordination of stakeholder efforts, including identification of funding and support for research and development, loan guarantees, tax incentives and broader crop-insurance programs. in addition, caaFi will continue its outreach initiatives and tech- nical support to regional alternative-fuels initiatives throughout the united states.

6. notable Developments

notice: the presentation of specific companies, products or services in the report does not imply that these specific companies, products or services are endorsed or recommended by iata as such or in preference to others of a similar nature which are not mentioned or represented herein. opinions expressed by any company in the presentations appearing in the report are that company’s sole opinions and do not necessarily reflect those of iata .

  • 6.1 chapter summary

as described in chapter 1, there were over three hundred announced projects in alternative aviation fuels in 2011, making it impractical to report them all. instead, this chapter contains several notable develop- ments that have been reported in the news this year. these developments are as follows:

  • Ê in Mexico, a project named Flight plan has been launched by the national airport services provider, asa , in which locally grown feedstock was converted to biojet and consumed by interJet and aero Mexico on the first commercial transat- lantic flight;

  • Ê the lufthansa group of airlines has begun oper- ating eight daily biojet flights between Hamburg and Frankfurt on a dedicated a321, under the project name puresky;

  • Ê the Qantas group has entered into agreements with solena and sapphire energy to develop their technology for the australian biojet market;

  • Ê air France flew what it believes is the greenest flight ever by utilizing a combination of biojet fuel, and technological and operational optimization;

  • Ê taroM, the romanian airline, has embarked on an ambitious biojet fuel project that includes anal- yses of camelina as the primary feedstock and the effects on the entire supply chain from the crop to finished fuel;

  • Ê skynrG, a provider of biojet fuel, has expanded its logistics and distribution operations, and provided the biofuel to multiple green flights in 2011;

  • Ê BioJet corporation has received us1.2 Billion in financing equity that have allowed it to become what it believes is the largest producer of Jatropha in the world.

    • 6.2 recent activities on sustainable aviation Biofuels in Mexico

Following the objectives that the aviation industry has set for itself, the Mexican Federal Government, has implemented an ambitious strategy for the promo- tion and development of sustainable aviation biofuels.

aeropuertos y servicios auxiliares (asa , airports and auxiliary services), the agency in charge of this endeavor, designed a comprehensive far-reaching road-mapping exercise called the “Flight plan towards sustainable aviation Biofuels in Mexico”.

the idea behind the Flight plan was to actively work to understand the supply chain through which commercially viable and sustainable aviation fuels can be obtained. asa is the sole supplier of jet fuel in

Mexico, responsible for all into-plane operations and the management of over 60 fuel farms in the Mexican airport network (Figure 9). Being the last link in the

supply chain gives it a holistic view that enables the organization to act as a catalyst in this process.

the Flight plan exercise was able to pull all interested

stakeholders along the aviation biofuel value chain. all levels of government (federal, state, and local), academic and research institutions, together with the private sector, from small producers in the agriculture industry to big financial institutions, participated in

the process. the main objective was to analyze the existing and missing links in this chain, being similar to a road-mapping exercise in that it looks into the market

drivers, the associated products and services, and the technologies that could help an aviation biofuel industry get off its feet. the main goals of the Flight plan were to diagnose the state in which the different parts of the supply chain were, get all the interested stakeholders involved, and communicate to society at large the benefits that aviation biofuels can bring.

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Figure 9 – network of fuel farms managed by asa .

support from many organizations was critical to the success of the Flight plan, including international companies such as Boeing and uop-Honeywell, but others such as the roundtable for sustainable Biofuels (rsB) were also heavily involved.

as part of the process, a proof of concept exercise was also carried out. Jatropha seeds were collected

throughout Mexico to serve as a source of feedstock for the production of a first batch of a HeFa (Hydro- processed esters and Fatty acids) type fuel. close to

  • 35 tons of seed were sent to an oil production facility

in the city of Guadalajara, in central-western Mexico, where the oil was extracted to produce approximately 10,000 liters. the crude jatropha oil was subjected to

a cleaning process to remove impurities, and it was subsequently sent to a uop-Honeywell refining facility near the city of Houston, texas. after the refining process was completed, the resulting synthesized paraffinic kerosene or BiospK, was imported back to Mexico, where it was blended with fossil-based Jet a-1 fuel in a 27%-73% ratio.

in parallel, the fuel farm located at the Mexico city international airport (Mcia) received several upgrades in its infrastructure. a small, unused tank, together with the filtering and reception areas were revamped to

receive the BiospK/Jet a-1 blend (Figure 10), and some of the refueling equipment was also updated to reflect the use of biofuel (Figure 11).

6 Figure 9 – network of fuel farms managed by asa . support from many organizations

Figure 10 – storage tank for the BiospK/Jet a-1 blend.

6 Figure 11 – refueler updated with biofuel imagery.
6
Figure 11 – refueler updated with biofuel imagery.

on april 1st, 2011, as the closing event for the Flight plan exercise, the first demonstration flight in Mexico was carried out, using an airbus a-320 aircraft from interjet. the route was Mexico city – tuxtla Gutierrez, the capital city of the southern state of chiapas, as it was this state where most of the jatropha seed was collected. close to 120 observers were on board, as this historic flight took off from the Mcia , mostly members of the press, but also with several important members of the Mexican political landscape, including the Governor of chiapas.

6 Figure 11 – refueler updated with biofuel imagery. on april 1st, 2011, as the closing

Figure 12 – take-off of the first demonstration flight in Mexico.

once the astM approved the standard specifica- tion for aviation turbine Fuels containing synthesized Hydrocarbons on July 1st of 2011, the first two commercial flights in the american continent were done, also by interjet, and also between the cities of

Mexico and tuxtla Gutierrez. almost 300 passengers flew on these flights, marking the dawn of a new era in Mexican aviation history.

6 Figure 11 – refueler updated with biofuel imagery. on april 1st, 2011, as the closing

Figure 13 – aeromexico’s Boeing 777 parked at the Madrid-Barajas tarmac after the first transoceanic flight.

on august 1st of this year, the first commercial trans- oceanic flight on a wide-body jet using biojet fuel in the world was executed by aeromexico, carrying more than 250 passengers between Mexico city and Madrid (Figure 13). the flight used over 26,000 liters of a 25% BiospK – 75% Jet a-1 blend derived from camelina oil. the route was chosen in part as a bolstering mechanism for the treaty that was signed between the governments of Mexico and spain to promote the development of sustainable aviation biofuels.

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  • 6.2.1 next steps at asa

the Flight plan towards sustainable aviation Biofuels in Mexico has proved to be an invaluable exercise to identify the existing and missing links along the value chain of this new type of energy.

new lines of research have emerged and the chal- lenge is to find the necessary funding to pursue them. this, together with the implementation of the defined action items are the necessary next steps to follow so that a necessary aviation biofuel industry is established in Mexico.

as asa works on putting together the pieces of the puzzle to define the successful path Mexico will be following in the next few years, the results that will benefit Mexican society, such as the reduction in greenhouse emissions, the promotion of agriculture in marginal land, new jobs, and a major boost for a new industry, are well under way.

  • 6.3 lufthansa’s new Brand “ puresky – sky Friendly energy ®

lufthansa has created its own brand in order to focus all alternative fuels’ activities towards its aim:

a contribution to mitigate climate change by reducing greenhouse gases.

  • 6.3.1 “puresky Working Group”

the lufthansa Group of airlines (austrian airlines, British Midland, Brussels airlines, Germanwings, lufthansa passenger airline, lufthansa cargo, swiss international air lines) has formed the “puresky working group” with representatives from all member airlines to coordinate group activities with regards to biofuels.

  • 6.3.2 “Burn Fair ” inflight evaluation of engine Behavior and c orresponding research Work

since July 15th, 2011, a dedicated a321 with the tailsign D-aiDG operates on a closed loop between Hamburg and Frankfurt with 8 flights per day burning a 50/50 biofuel blend in the starboard engine. the engine “footprints” of the brand new aircraft have been

taken by lufthansa technik prior to commencement of evaluation flights and the engine behavior is frequently monitored as well as a comparison of both engines with regards to systems, burning chamber and overall performance. the aircraft is fueled only in Hamburg with the block-fuel for the entire roundtrip: after three months of operation observers can already monitor a 1 per cent lower fuel burn in the bioblend-engine (a figure expected due to the higher energy content).

6 6.2.1 next steps at asa the Flight plan towards sustainable aviation Biofuels in Mexico has

leading German research institutes such as Bauhaus luftfahrt, DBFZ-German Biomass research center, technical university Hamburg-Harburg and Dlr – stuttgart and Dlr – Hamburg are calculating effective co 2 reductions as well as how well the sustainability criteria have been met. this project is funded by the German government.

  • 6.3.3 “QuanaBiol – Quality and sustainability requirements for Biofuels”

Fraunhofer institute uMsicHt, technical university of Berlin, Bauhaus luftfahrt and lufthansa jointly share a two-year research project on quality requirements for production, handling and storage of biofuels as new market participants suffer from lack of knowledge and practice how to meet the iata fuel standards and the ”Joint Guidelines”-standard of the international oil companies. the project aims to create the foundation for an iso-standard for fuel handling and storage. this project will be funded by the German government.

  • 6.3.4 sustainable Biokerosene Feedstock supply for aviation – leuphana university

lufthansa cooperates with the center for sustain- ability Management of the leuphana university lüneburg (40 miles southeast of Hamburg). the coop-

eration has already started with camelina test fields in romania and ukraine and covers single camelina plants on dedicated fields as well as a intercropping of camelina and peas (“Food and Fuel” in a joint farming approach).

  • 6.3.5 aireg e.V. – aviation initiative for renewable energy in Germany

lufthansa is one of the founding members of this initia- tive, which is described in chapter 5. the initiative counts for 24 members along the supply chain from farming to the aircraft wing.

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leading German research institutes such as Bauhaus luftfahrt, DBFZ-German Biomass research center, technical university Hamburg-Harburg and
  • 6.4 platform for sustainable aviation Fuels – university of lüneburg/Germany

the key challenge for alternative jet fuel is: how, when and where can large volumes of feedstock be produced, and how can their sustainability be ensured? the platform for sustainable aviation Fuels is a three year r&D project dedicated to these ques- tions. the platform builds on two thematic pillars: one is feedstock production in temperate climates with annual crops, the other plant oil production in (sub-) tropical climates.

in the tropics, integrated afforestation programs with oil-bearing plants such as Moringa, pongamia, Jatropha or acrocomia are developed. pilot projects will be implemented in cooperation with industry partners. in such projects, the ecological, economic and social sustainability of plantation concepts will be continu-
6 ously improved focusing on carbon sequestration, biodiversity conservation, positive social impacts and profitability. as a starting point for this research pillar, a global market study has been conducted, compiling key data of existing projects with oil-bearing trees such as Jatropha, Moringa and pongamia. the study gives an overview about the status quo and sustainability of the industry. in addition, it can serve as a starting point for the future expansion of plant oil production in cooperation with existing and new projects. the study will be published by the end of 2011.

in regions with temperate climate, new agronomic concepts for annual oil crops such as camelina are tested for production. such concepts include different types of intercropping as well as catch crop- ping. likewise, the concepts are designed to meet existing sustainability standards, and pilots are being conducted together with industry partners.

the interdisciplinary team of currently 12 researchers is based at the leuphana university in lüneburg (Germany) where it cooperates with the centre for sustainability Management and the institute for ecology. partners in academia include university of south australia as well as the Yale school of Forestry (usa). in collaboration with partners from academia and business, the project on the one hand aims at developing concepts of sustainable production and value chain design for bio jet fuel. on the other hand, the project is explicitly focused on commercially realizing such concepts in practice. in this context, inocas GmbH (innovative oil and carbon solutions) has been founded as a spin-off company. lufthansa aG is among the platform’s first cooperation partners

from the industry; further collaborations and support of industry partners will be developed in the future. the project is funded by the eu with euro 2.7 million.

  • 6.5 Qantas sustainable aviation Fuels

the aviation industry is committed to reducing its greenhouse gas emissions and the Qantas Group is at the forefront of efforts to do so in the asia-pacific region. escalating fuel costs and the patchwork introduction of new regulatory schemes for carbon emissions have only underlined the imperative for the industry to develop new technologies. the Qantas Group is preparing for compliance across three juris- dictions and bringing forward the technology required to minimise its environmental footprint.

During 2010/11, with the european union and austra- lian emissions trading schemes moving closer, the Qantas Group launched collaborations with two leading u. s . companies involved in developing sustainable aviation fuel technology – while continuing our work in fuel optimisation and technology develop- ment, reducing resource consumption and engaging with employees and community groups on environ- mental goals.

though technology development and more efficient flight operations and aircraft can deliver substantial short-to-medium term gains, only the development of low-carbon alternatives to traditional jet fuel at commercial scale will truly produce a step-change in aviation’s emissions profile.

Qantas has been closely involved in the development of the sustainable aviation fuels industry for a number of years, and with growing global consensus for action on climate change and emergence of carbon pricing policies, the case for low carbon fuels has never been so clear.

a wide range of promising technologies available; the challenge for Qantas is to determine the most viable in terms of economics and sustainability.

as a signatory of the saFuG (sustainable aviation Fuel users Group) pledge, Qantas actively reviews suppliers and potential pathways against strict sustainability criteria. potential biomass feedstocks are assessed to ensure they do not displace food sources, minimise biodiversity impacts, require minimal land and energy to produce, and do not compromise fresh water resources. in addition, the refined biomass must be capable of being ‘dropped in’ to the aviation fuel supply chain and must be price-competitive with current jet kerosene.

6 6.5.1 Qantas Biojet projects 6.5.2 australian Biojet initiatives
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6.5.1
Qantas Biojet projects
6.5.2
australian Biojet initiatives

in early 2011, the Qantas Group entered into collabora- tions with two leading u.s. companies, solazyme and solena, to investigate the potential for their signature technologies in the australian market. these collabo- rations are focused on developing feasibility studies and business cases for each technology.

san Francisco-based solazyme has developed a process based on the fermentation of algae in combination with certain sustainable feedstocks – such as sugar cane – to produce algal oils, which can then be refined into jet fuel. i t has entered trial agreements with the u. s . navy and also works with major global corporations such as unilever. Given Queensland’s abundant sugar cane supplies, there is considerable potential for, an interest in, the tech- nology in australia.

solena Fuels, which is already working with British airways on the development of a fuel plant in london, specialises in the gasification of waste to produce fuel. its business model draws on the ample produc- tion of various types of waste in major cities – such as london or sydney – and has clear benefits in terms of scale, proximity to supply infrastructure and avoidance of landfill.

in May 2011, the australian sustainable aviation Fuel users Group (asaFuG), of which Qantas is a founding member, launched the sustainable aviation Fuel road Map (saFrM).

the report highlighted australia’s advantages as a potential saF producer: a temperate climate, large land base, geopolitical stability, strengths in agricul- tural production and a commitment to sustainability. the study also identified the current infrastructure constraints and how a new saF industry might address those issues.

to assist in the development of the industry, the report set out a list of key recommendations and conditions for industry, the private sector and government with a focus on market structure, biomass supply, refining and certification.

the saFrM report made clear that the commercially- viable production of such fuels in australia will depend on these conditions being met – in particular the adequate availability of government funding support and private capital.

However, with australia’s growing economy, natural resources and human capital, the possibilities are exciting, and the Qantas Group is well-positioned to lead the industry in the asia-pacific region.

6.6 air France’s Green Flight 6 on the 13th of october 2011, air France performed what
  • 6.6 air France’s Green Flight

  • 6 on the 13th of october 2011, air France performed what it considers the greenest ever commercial biofuel passenger flight. this flight from toulouse-Blagnac to paris-orly using an airbus a321 demonstrated the halving of co 2 emitted compared to a regular flight. the biofuel used, provided by skynrG, constitutes a renewable, sustainable energy source which has none of the environmental or social impacts linked to the use of agricultural biomass. it was made from used cooking oil; this type of biofuel does not compete with the food chain nor does it deplete water resources. the biofuel was one aspect of this flight, but to reduce fuel consumption and cut co 2 emissions at the same time air France’s pilots, in conjunction with air traffic control (DGac-Dsna), applied the most fuel-efficient procedures in each phase: the use of electrically-powered generators on the ground, taxiing on the power of a single engine, a steady climb out of

toulouse, a higher cruising altitude and a continuous descent approach into paris-orly airport. light mate- rials were used on the aircraft to reduce total weight and reduce fuel consumption.

this fully-optimized flight is an illustration of the 4 pillars strategy of iata and shows how air France intends to reconcile the development of air transport with control over its co 2 emissions. Biofuel development is one of the priorities of air-France KlM group, whose strategy is to explore all parts of the supply chain from produc- tion to commercialization: air France is involved in a Btl from forestry waste production plant project and is set to receive 2000 tons of Btl per year from 2014, while KlM operates regular biofuel flights from amsterdam to paris and skynrG, a joint venture between KlM, north sea Group and spring associates stimulates the technical and economical development of sustain- able biofuels.

6.6 air France’s Green Flight 6 on the 13th of october 2011, air France performed what
  • 6.7 taro M and the First european camelina Value chain

taroM, the romanian national airline is investigating the development of a program related to emissions cuts, preparing for the eu-ets challenges. apart from managing fuel burn in a responsible manner, taroM’s management is actively involved in a demanding biofuel project.

  • 6.7.1 the romanian camelina Value chain

airbus and taroM romanian air transport together with a consortium of key stakeholders have estab- lished one of europe’s first projects aiming to establish a sustainable biojet fuel processing and production capability. the aim of the project is to provide a biofuel made from the camelina plant, as a sustainable substi- tute to fossil based jet fuel.

this project is part of an ambitious airbus global program connecting farmers, refiners and the end user (i.e. taroM) to form regional and sustainable biofuel value chains. in order to be sustainable, these value chains must not compete with land, water or food. the partnership works by encouraging local farmers to farm non-arable land in the confidence that their crops will be bought by refiners which will have, in return, customers in the airlines.

unlike other biofuel value chains projects, taroM’s project has its particularities. thus, there is an oppor- tunity to extend the project in the c-e european region and the sustainability aspects are very much focusing on land use change.

the main partners involved in this consortium are:

taroM, airBus, camelina company españa and uop, a Honeywell company. each company has its own role in this project: airbus is providing technical and project management expertise and is sponsoring the sustainability assessment and lca studies; cce is contributing its knowledge on camelina agronomy, including technologies on camelina growth, agricultural monitoring networks and plant science; Honeywell’s uop is applying its aviation biofuel refining technology and taroM, as the user, will execute commercial flights with the biofuel resulting from the 2010-2011 research and demo-trials.

the consortium is working together with the Bucha- rest university of agronomical sciences and Veterinary Medicine’s centre of Biotechnology (BioteHGen) on the sustainable agricultural phase of the project regarding the camelina plantations, harvesting and oil production.

the sustainability studies and the lca are conducted by the Manchester Metropolitan university, assisted by coMoti, a romanian aircraft engine research estab- lishment. the atmospheric impact assessment will also be conducted, with focus on the airport’s local air quality, not only on co 2 .

However, the main aim of this project is to go from research to development and deployment. thus, the consortium is expecting that in 2013-2014, the camelina biofuel to be produced in romania and avail- able for taroM and sky team partners on a daily operation, as a drop in solution.

  • 6.7.2 camelina Feedstock

taroM and its consortium partners are working with local solutions for local community/geography and camelina is indigenous to romania. camelina has been chosen because of its good energy poten- tial, considering the fact that one hectare of camelina produces 0.5-1 tonnes of oil, it has great rotation prop- erties and can also grow on marginal land, so it does not compete for agricultural land. camelina’s co 2 life cycle suggests 50%-80% lower emissions compared to jet fuel.

  • 6.7.3 project structure

i n 2011 the project’s aim is to further verify the sustainability and economic viability of producing bio-kerosene. cce and B ioteHG en have imple- mented various camelina placement trials in different locations in romania, with the purpose of assessing sustainability of different production models and soil types, including contaminated soil and uncultivated land, in order to identify the best techniques and genetic material.

the studies will provide the consortium with sufficient information to choose the best solution in terms of sustainability and economic viability in order to move forward to the implementation phase. a Biofuel refinery development is in progress, in partnership with uop and a romanian local refinery.

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Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15
Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15
Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15

Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011

Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15
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6
Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15
Figure 14 – camelina from sowing to harvesting: Mihailesti demo trial: March-July 2011 6 Figure 15

Figure 15 – camelina seeds, cake and oil.

taroM’s first Biofuel Flight is planned to take place in the first half of 2012. the project will be linked with the european advanced Biofuels Flightpath (2M tons of biofuels to be produced in europe by 2020).

  • 6.7.4 next steps: Development and Deployment

the next step after research will involve a joint effort with a romanian Government working group, initiated to speed up the process of production and commer- cialization, so taroM and its sky team partners can benefit from camelina biofuel according to their needs. the members of this working group are from different ministries representing several parts of the value chain:

agriculture, economy, environment and finance. the chair is represented by the Ministry of transport and infrastructure, which is taroM’s owner.

some examples of the research aspects of value chain are illustrated in Figure 14 and Figure 15.

  • 12 demo-trials were selected across romania,

including 3 varieties of camelina sativa in two periods of sowing (autumn and spring): austrian camelina - calena; Germania- G p 202 and romanian - camelina.

  • 6.7.5 What Makes this project special?

one important objective is to verify the opportunity to use contaminated land as part of available land for camelina value chain. romania has 800,000 Ha of contaminated land which need to be further researched and checked of heavy metals traceability. Manchester Metropolitan university is tasked with this challenging research, but if the results are positive, the debate fuel vs. food will have a different meaning and the results can be extended to other projects using feedstocks for biofuels.

another special aspect of this project is its pros- pect to be extended in the c-e europe. this part of europe has a real opportunity to produce camelina biofuel, which, as a rotational plant seems to tick all the required sustainability criteria.

thus, a more practical way, from the airline’s industry perspective, is a regional project which will investigate the value chain from farmers to the aircraft, to identify the missing link and assess the sustainability criteria, with focuses on land versus food. the consortium has to consider the uncultivated land availability, or degraded, marginal land which can be enriched in nutrients by using camelina crops. the entire region has strong research in agriculture and the fact that camelina cake is also an animal feed is a plus already known by some farmers in the region. this project will generate several jobs across the value chain, as well as new markets for camelina oil and cake.

  • 6.7.6 the project’s Focus

the focus is on development and deployment, based on local knowledge, farmers’ willingness to take part in this kind of project, as well as the availability of marginal, contaminated and uncultivated land. it has to be kept in mind that camelina is a rotational plant to cereals, for instance, so that an intercrops opportunity can be also considered. However, existing facilities related to refineries are helping the value chain and this can also help the present economic climate. the assessment priorities should be on production and commercialization. an important factor is also the willingness to change mentalities for all the involved

sectors: regulators, farmers, refineries, airlines. and of course, the sustainability criteria have to be followed closely during the entire value chain.

  • 6.7.7 are there any limits?

Yes, of course. they are mainly cost related, as the interest in a big refinery will generate a large invest- ment. the business case needs to be well defined, a financial system in place indentified and also, there is a need for a strong lobby locally, backed up by the aviation sector. the european industrial Bioenergy initiative (eiBi) can be an answer. an important factor in this equation is that the owner of the technology turns the oil into biofuel and uop, a Honeywell company, is such an example. the company is also well known in the c-e european region.

However, airbus & taroM partnership has estab- lished the first european biofuel value chain project which will answer to several unknowns.

  • 6.8 skynrG – the Fuel Future

    • 6.8.1 skynrG’s Mission

Mission: to help make the market for truly sustainable jet fuel that is affordable.

skynrG develops and sells sustainable jet fuel for the global aviation market based on a one-stop-shop prin- ciple that takes care of the entire chain and guarantees

6

another special aspect of this project is its pros- pect to be extended in the c-e

delivery of truly sustainable jet fuel, at the lowest price in the market. skynrG is a supply chain director, with excellent relationships and strong partners in all parts of the supply chain (feedstock, logistical, refining, quality control, sustainability). it has access to all production locations in the world. the current short term focus is on demand aggregation to enable production runs (which requires a minimum volume that often cannot be met by a single airline).

in addition to selling and promoting sustainable avia- tion fuel, skynrG puts a lot of effort into guaranteeing sustainability, which it believes is the crucial factor in ensuring this emerging market is a success. the sustainability of alternative aviation fuels depends on many factors and has to be assessed on a case-by- case basis. to make the right decisions now and in the future, skynrG is advised by an independent sustainability Board consisting of the Dutch branch of the World Wildlife Fund for nature (WWF-nl), soli- daridad, and the copernicus institute of the university
6 of utrecht. in addition, skynrG supports the round- table on sustainable Biofuels, and have been elected co-chair of chamber 3 for 2012.

delivery of truly sustainable jet fuel, at the lowest price in the market. skynrG is a
  • 6.8.2 skynrG accomplishments

over the last 18 months skynrG has developed the technical, sustainability, supply chain logistics and marketing capabilities to deliver sustainable jet fuel to any commercial airline globally. skynrG has a proven track record, which includes:

  • Ê supporting KlM to achieve the first commer- cial flight ever (and its subsequent green route aMs-cDG);

  • Ê Delivery to three other leading airlines (Finnair, thomson, airFrance);

  • Ê Delivery to five other commercial airlines in Q4 2011, with at least one on every continent of the world.

although these first commercial flights and green routes represent a small overall contribution to global jet fuel supplies, they are an essential catalyst for the creation of this new market. some benefits of these flights include the following:

  • Ê Demonstrate to the world that the aviation industry is serious about sustainable jet fuel;

  • Ê engage key stakeholders (e.g. airlines, airports, airline customers, governments, suppliers, inves- tors, technology developers and nGos) to join the race;

delivery of truly sustainable jet fuel, at the lowest price in the market. skynrG is a
delivery of truly sustainable jet fuel, at the lowest price in the market. skynrG is a

top left to bottom right: KlM, thomson airways, Finnair, airFrance.

delivery of truly sustainable jet fuel, at the lowest price in the market. skynrG is a
  • Ê provide great learning and insights in devel- oping the downstream part of the supply chain by going from theory to practice (e.g. astM certification, traceability, sustainability, chain effi- ciencies, ets);

  • Ê Help in pushing down the price curve down through initial scale.

    • 6.8.3 skynrG Bioports™

skynrG has been building a strong set of business development tools based on the experience, volume and solid relationship with K l M at schiphol airport. How does this work? K l M has set (ambitious) bio jet fuel targets and wants to play an active role in the development of bio jet fuel. schiphol airport has recognized its role in the bio jet fuel supply chain and wants to contribute to the development. i nvolve- ment of the airport and access to the fuel systems turns out to be a crucial part in developing the biofuel supply chain. i n this relationship, skynrG is not just the supplier of the sustainable jet fuel, but also the principal driver in making it structurally affordable (feedstock control, technology, investments, legisla- tion/lobby, co-funding options). the knowledge and experience has given skynrG a blue-print which it aims to replicate at three to five other strategic airport ‘bio-hub’ locations worldwide in partnership with the selected carrier and airport. this will fortify skynrG’s global leadership position through demand aggrega- tion and price leadership.

  • 6.9 BioJet c orporation 1

Ê provide great learning and insights in devel- oping the downstream part of the supply chain

the past year has been a banner one for BioJet. the company is a leading international supply chain integrator for renewable (bio) jet fuel and related co-products which include green diesel, etc. Formed in late 2008, BioJet was the first company to operate across the entire supply chain by owning and controlling large quantities of bio-feedstock, developing refining/ conversion capacity, solving aviation fuel supply logis- tics, and handling sales to end users. BioJet was the first to employ the model within aviation biofuels and remains first mover.

Ê provide great learning and insights in devel- oping the downstream part of the supply chain
  • 6.9.1 2011 Highlights

February – BioJet receives us$1.2 Billion financing facility from equity partners Fund.

april – BioJet acquires abundant Biofuels corp. making BioJet world’s largest Jatropha feedstock developer.

april – BioJet and council of energy resource tribes (cert) form exclusive relationship to develop multi- billion dollar renewable jet and diesel feedstock and refining facilities on native american lands.

June – BioJet gains worldwide exclusive rights to disruptive camelina crop yield technology, expects to double camelina crop yields. arpa-e funds project.

July – BioJet offers 1 Billion gallons of renewable jet fuel to the industry at $3 price cap on future deliv- eries. no other competitor matches pricing.

July – university of West indies and BioJet announce uWi/BioJet Biofuels research center.

august – BioJet gains worldwide exclusive to disrup- tive hybrid Gtl/Bio refinery process. cheaper and more flexible than any straight hydroprocessing process.

october – BioJet forms BioJet asia pac subsid-

iary to develop aviation pac domain

biofuels in china and asia

  • 6.9.2 capital & Finance

the primary and dominant underlying issue in the biofuel supply chain is capital. to date, the single greatest barrier to achieving targets in the world biofuel industry remains inadequate capital.

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1. since March 2010, BioJet has been the first alternative Fuels strategic partner of iata .

in February 2011, BioJet closed on a $1.2 Billion financing facility. this funding represents the corner- stone of the company’s us$6 Billion, 10 year capital assets development program. We believe this is the largest funding ever done in the renew- able jet or diesel fields. currently, BioJet is involved in discussions on another $300 million, strategic acqui- sitions of 4 different companies in the feedstock and refining spaces, and 10 discussions involving project joint ventures.

6.9.3

Feedstock

the other primary issue in any biofuel is the feedstock source. the company is fundamentally agnostic with regard to feedstocks and is committed to utilizing any and all sustainable and economically viable sources in the fulfillment of its mission, making it unique among renewable jet and diesel fuel producers. BioJet oper- ates in multiple feedstocks which include Jatropha,
6 camelina, algae, Biomass, sugars, and designer sources, such that it will be diversified across all the major potential sources of feedstock. the company’s model dictates that it must own all, or a dominant portion, of feedstock projects. this policy drastically reduces risk.

Jatropha

With the acquisition of abundant Biofuels corpora- tion, it is believed that BioJet is now the world’s largest Jatropha developer with existing and planned projects running to 4 million hectares in 10 different countries and another 3 million hectares in negotiation. abun- dant holds one of the top Jatropha agronomy teams in the world and is active in crop yield optimization in concert with several leading seed laboratories.

Camelina

the company believes that by 2013 it will be the world’s largest camelina producer. it currently has camelina cultivation/refining under development in argentina and is in the planning stages for large camelina projects in the u.s. and eastern europe including russia, romania, slovenia, etc.

the limiting factor in camelina is availability of seed. currently, the company holds enough seed to plant 2 million acres of camelina. of major importance, BioJet holds the worldwide exclusive to disruptive technology which it believes will double the crop yield of camelina, thereby halving the cost of production.

Algae

BioJet believes that the viability of algae is still some years in the future. However, the company has reviewed over 150 algae projects and has joint venture agree- ments pending.

Biomass

BioJet has several cutting edge Biomass conversion technologies in negotiation. the build-out quantity of biomass exceeds 1 billion gallons equivalent per year.

  • 6.9.4 native american projects

BioJet will develop large camelina and algae proj- ects as well as refining/conversion capacity on native american lands in the u.s. through its multi- billion dollar exclusive joint venture with the council of energy resource tribes (cert). their 57 sover- eign tribal members have absolute control over major natural resources which include oil, gas, coal, uranium, water and agricultural lands, the latter comprising of 56 million acres. cert has commented “We believe our sovereign members along with BioJet are well suited to lead one of the largest economic transitions in history – the transition from a fossil based to a biofuel based transportation sector, and on a larger scale, the transition to building a foundation for sustainable tribal communities and an infrastructure for energy indepen- dence for the united states”.

  • 6.9.5 refining/c onversion

in previous years, BioJet developed relationships with uop and ncsu to utilize their refining technologies in plants in asia, south caribbean, and europe.

recently, BioJet concluded a deal with emerging Fuels technology which gives the company world- wide exclusive control of the disruptive natural gas to synthetic fuel/plant oil to biofuel hybrid plant tech- nology. emerging Fuels is one of the world’s leaders in gas to liquid fuel technologies and hydroprocessing technologies. resultant fuels will be significantly cheaper than other types of petroleum or biofuels.

  • 6.9.6 sales/o fftake

BioJet has several major finished fuel contracts in negotiation and expects to have completed a us$1.5 Billion supply contract with a highly respected, major air carrier by the end of 2011. the company also expects to complete a us$1 Billion feedstock oil supply contract this year. Deliveries of fuel begin in 2013 and feedstock oil in 2012.

  • 6.9.7 sustainability

BioJet continues to be a world leader in sustain- ability. BioJet chairman, Mitch Hawkins, was elected chairman of roundtable on sustainable Biofuels services and the corporation continues to hold two Board seats at the prestigious rsB standards. BioJet is also active in iso and other sustain- ability programs.

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Glossary

the applied definitions and acronyms in the report are mentioned in this glossary.

Definitions

1 st generation biofuel

= biofuel produced from biomass that may compete with food production,

2 nd generation biofuel agricultural residues alternative fuel anaerobic digestion aromatics astM D1655 astM D7566

degrade fresh water supply, cause deforestation and/or reduce biodiversity = biofuel made from sustainable, non-food biomass such as algae, jatropha, etc. = by-products from agriculture that are not well utilized = fuel from non-petroleum source = digestion in the absence of oxygen = molecule with a carbon ring of unsaturated bonds = astM standard specification for aviation turbine Fuels = astM standard specification for aviation turbine Fuels containing

Barrel Biochemical Biodiesel Biofuel Biojet fuel Biomass Blend Butanol carbon footprint carbon neutral catalyst cellulose cloud point co 2 Def stan 91-91 Density Distillation Drop-in fuel

synthesized Hydrocarbons = volume measure of 159 liters or 42 us gallons = processing material with organisms or enzymes = alkyl esters derived from fatty acids of biological origin = fuel produced out of biomass = jet fuel produced out of biomass = renewable biological raw material such as plants, algae, organic waste etc. = mixing of different types of fuel = alcohol with a 4-carbon atom based carbon chain = net amount of carbon dioxide emissions attributed to a product or activity = with zero carbon footprint (co 2 emissions = co 2 absorption) = material that facilitates a chemical reaction = organic compound consisting of linked D-glucose units = temperature at which solids (wax) begin to form and separate from the fuel = carbon dioxide = uK Defense standard for turbine Fuel, aviation Kerosene type = mass per unit volume = the separation of liquids by means of difference in boiling points = alternative fuel that is indistinguishable from conventional fuel, with no changes

esterification

of aircraft, engine or supply infrastructure required = process to produce esters from fatty acids and alcohols, e.g. FaMe and Faee

ethanol

= drinkable alcohol with 2 carbon atoms

FaMe/Faee

= Fatty acid Methyl esters/Fatty acid ethyl esters – ester based biodiesels

Feedstock

= raw material such as biomass, oils, fats, coal and gas

Forest residues

= by-products from forestry industries

Fractionation

= physical separation through progressive evaporation of volatile components

Freezing point

= temperature at which a solid freezes on cooling

Ft fuel

= fuel produced with the Fischer tropsch process

Fuel additive

= additive to fuel to improve a certain property

Gasification

= process transforming feedstock into co and H 2 under high temperature

Gallon

= 3.785 liters

Hydrocarbons

= molecules made out of carbon and hydrogen, used as fuels

Hydrocracking

= cutting down carbon chains under influence of hydrogen

Hydrogenated

= raw material upgraded by hydroprocessing

Hydrotreatment

= saturating and removing impurities in hydrocarbons using hydrogen

Hydroprocessing

= upgrading of oils with hydrogen, current technology in refineries

industry residues

= by-products from industries that are not or not well utilized

lignin

= complex organic polymer commonly derived from wood and plant material

Marginal lands

= lands with poor soils

Methanol

= smallest alcohol with only 1 carbon atom and low specific energy

oil crops

= plants that produces oil, palm oil, jatropha oil, soybean oil, etc.

paraffin

= straight-chain alkane hydrocarbons with general formula c n H 2n +2

polymerization

= chemical process bonding together multiple small molecules

pyrolysis

= heating in absence of oxygen resulting in thermal decomposition

solid biomass

= biomass in solid state, such as wood, switch grass, etc.

specific energy

= amount of energy per unit weight or volume

spK

= synthetic paraffinic Kerosene, jet fuel substitute lacking aromatic compounds

acronyms

aeMp

= annual emissions Monitoring plan

aer

= annual emissions report

aFrl

= air Force research laboratory (usa)

astM

= american society of testing and Materials (usa)

ata

= air transport association (usa)

Btl

= Biomass to liquids (Fischer-tropsch process)

Btu

= British thermal unit

caa

= civil aviation authority

caaFi

= commercial alternative aviation Fuels initiative (usa)

ctl

= coal to liquids (Fischer-tropsch process)

Dla

= Defense logistics agency (usa)

Doe

= Department of energy (usa)

ec

= european commission

epa

= environmental protection agency (usa)

ets

= emissions trading scheme

eu

= european union

eua

= european union emission allowance

euaa

= european union aviation emission allowance

Ft

= Fischer-tropsch process

Faa

= Federal aviation administration (usa)

Fae

= Fatty acid ester

Faee

= Fatty acid ethyl ester

FaMe

= Fatty acid Methyl ester

Ge

= Gasoline equivalent

GHG

= Greenhouse Gas

Gtl

= Gas to liquids (Fischer-tropsch process)

HeFa

= Hydroprocessed esters and Fatty acids

HrJ

= Hydroprocessed renewable Jet fuel

iea

= international energy agency

lca

= lifecycle analysis

lGe

= liters of Gasoline equivalent

MJ

= Megajoule

oeM

= original equipment Manufacturer

partner

= partnership for air transportation noise & emission reduction

ppp

= public private partnership

reD

= renewable energy Directive (eu)

rFs

= renewable Fuel standard (usa)

rsB

= roundtable on sustainable Biofuels

spK

= synthetic paraffinic Kerosene

sWaFea

= sustainable Way for alternative Fuels and energy in aviation

usaF

= united states air Force

acknowledgements

iata would like to express its appreciation to the following experts for their valuable contributions to this report:

George anjaparidze – iata Michel Baljet – iata steve Barker – ata sabrina Bringtown – air France Joachim Buse – lufthansa laurel Harmon – lanzatech Mitch Hawkins – Biojet corporation Victoria Junquera – roundtable on sustainable Biofuels Dirk Kronemeijer – skynrG Mike lu – aBppM Jorin Mamen – iata Dragos Munteanu – taroM philippe novelli – sWaFea Brian pearce – iata Virgil regoli – air Force petroleum agency alejandro rios – asa thomas roetger – iata pam serino – Defence energy support center steven shaeffer – usaF petroleum agency Glenn toogood – Qantas carl Viljoen – sasol George Wilson – southwest research institute nancy Young – ata thilo Zelt – Jatropha alliance