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How Biofuels Are Powering Change In The Aviation Industry

CIT

By Natalie Burg

In the future, could planes be powered by wood chips? Or could you be zipping through the air courtesy of municipal waste—or even household trash? Thanks to big investments from some big names in aviation, those are just some of the ways we could be globe-trotting in coming decades.

These aviation biofuels may sound whimsical, but they are necessary for pretty straightforward reasons: Air travel demand is growing, fuel prices are expected to remain volatile, and concern about the impact of aviation on climate change is increasing too. The type—or types—of biofuel that will eventually power planes is still up in the air, but the search for the answer is officially underway.

"I think it's encouraging," said Ross Macfarlane, Senior Advisor for Business Partnerships for the nonprofit Climate Solutions, which partnered with several aviation industry members on their Sustainable Aviation Fuels Northwest initiative in 2011. "This isn't going to happen overnight. There are going to be failures, unquestionably…but it's very promising to see that kind of focus happening."

Sky-High Demand

As emerging economies grow and globalization makes the world flatter and smaller, more people are taking to the skies. According to the International Air Transport Association, global passenger traffic demand increased 5.9 percent in 2014, above the 10-year average growth rate of 5.6 percent. In the U.S. alone, the Federal Aviation Administration expects national carriers, which served 756 million passengers in 2014, to carry one billion passengers in 2029 and 1.14 billion by 2035.

All that flying impacts the planet. Aviation accounts for 2 percent of all human-induced carbon dioxide emissions, reports the nonprofit Air Transport Action Group. But that share is growing, said Macfarlane—even if it's growing by less than the increasing demand might suggest. According to the International Air Transport Association, with improvements in fuel efficiency, aviation’s contribution is not expected to increase beyond 3 percent by 2050.

Besides sustainability concerns, fuel is a major cost driver for airlines. According to the CIT Aerospace Outlook  report, 44 percent of global airline fleet and finance executives cite volatile fuel prices as a top challenge for the industry over the next two years. Fifty percent of them expect prices to rise in the next 18 months, and 80 percent expect fuel prices to rise in the next three years.

While Macfarlane acknowledged the aviation industry has already made greater strides in fuel efficiency than the auto industry, the trifecta of future fuel prices, climate concerns and rising demand requires a bigger solution.

Aviation Biofuel Challenges

The solution isn't as simple as replacing aviation fossil fuels with the same alternatives used by ground transportation.

"For ground fleets," said Macfarlane, "you can go to electrification, you can potentially go with renewable natural gas or even lower carbon kinds of fossil fuels such as propane. For aviation, that isn't a possibility."

Planes are long-term investments, so aviation biofuels must be able to work with existing fleets. But even if a carrier purchases a brand-new fleet, current biofuel technology isn't advanced enough to power it.

"There's an old saying in the aviation world that says, 'lift is a gift and thrust is a must,'" Macfarlane said. "To have commercial aviation work, you've got to have really high-energy, high-density liquid fuels that can provide a power that jet engines require."

Safety is an additional requirement. Any new biofuels must be absolutely reliable before carrying passengers into the skies.

Preparing Biofuels For Takeoff

Several aviation industry heavyweights are now stepping up to the plate. United Airlines recently invested $30 million in Fulcrum Bioenergy, a company working to convert household trash into renewable jet fuel that is expected to reduce carbon emissions by more than 80 percent. Last year, Boeing announced a breakthrough in green diesel, a renewable fuel that emits at least 50 percent less carbon dioxide than fossil fuels. Both Southwest Airlines and FedEx are partnering with Red Rock Biofuels, which produces drop-in aviation fuel made from woody biomass. British Airways is partnering with Solena Group to convert municipal solid waste into jet fuel. The list goes on, and every bit of those huge investments will be necessary.

"You don't design and build devices that essentially act like magic—taking people at huge distances at incredible speeds through the air—without being very focused on the science and engineering and technology," Macfarlane said.

While Macfarlane adds that government will likely need to participate in the aviation biofuels revolution to really get the technology established, he is encouraged by the industry investments he's seeing—especially since they're coming at a time when fuel prices are relatively low. He's seeing the impact of those commitments already.

"Five, six years ago it was still a question of whether there were viable alternatives to fossil-based fuels that people could safely fly on that could be viably developed," he said. "Those questions have been answered. It's not a question of if you can do it, the issue now is really about scale and sustainability."

That's no small concern. Even with concerted effort, scaling up renewable jet fuel technology the right way will take years—possibly decades. In the meantime, airlines continue to invest in fuel efficiency. With each new aircraft model, enhanced fuel efficiency is of critical importance to the airlines and investors.

As the aviation industry gets behind biofuel technology and continues to make strides in operational efficiency, it seems only a matter of time before passengers will be jet-setting across the globe in new, more sustainable ways.

A former downtown development professional, Natalie Burg is a freelancer who writes about growth, entrepreneurialism and innovation.