The Aviation Industry is seeking alternative energy solutions.
As of Oct. 2011, the International Civil Aviation Organization (ICAO) has identified 300 initiatives on alternative fuel production and deployment. Scheduled commercial flights using these fuels are already in full operation.
“This is a powerful indication of the progress that can be made by a single sector when there is the willingness to take advantage of a valuable opportunity for collective action towards a common goal.” (Raymond Benjamin, Secretary General of ICAO)
On the granular level, the Aviation Sector has recognized the need to address the challenges of:
- Rising Crude Oil Prices;
Crude oil prices have risen on average 24.18% year-over-year and airlines are forced into costly hedging strategies to manage fuel costs which already represent up to 40% and more of their total operating costs.
- Fossil Fuel Dependancy & Peak Oil;
Global aviation fuel demand will exceed 180 million metric tons (1,4 billion barrels) in 2012. This translates into 500.000 MT or 3,8 million barrels of jet fuel per day in 2012.
- Efficiency and climate change commitments;
Internationally the industry has made a voluntary commitment to zero emission growth.
- Tariffs that are being imposed on carbon emissions, and
- Ecologically aware customers demanding green transportation.
The sustainable future of aviation largely depends on the availability of biofuels. IATA has set a goal of using at least a 6% blend of sustainable 2nd generation “green” biofuels by 2020 for its member airlines which will accelerate the commercialisation of competitively priced aviation biofuels. Assuming a renewable Jet Fuel blend of 6-10% in year 2020, of which only 30% is contributed by Jatropha feedstock, this translates into a market demand of 3,8 to 6,6 million metric tons (or 30 to 51 million barrels) for Jatropha derived Jet Fuel at a value of $5 to 8,6 billion and a corresponding plantation size requirement of 1.5 – 3m ha.
In the long run, jatropha based jet fuel is estimated to contribute between 20% and 35% of overall market demand for green fuel, as a renewable fuel mix may also includes other feedstock sources (e.g. camelina, babasu, coconut, waste, used cooking oil). Based on a 30% overall biofuel blend (in 2030) of which only 35% is supplied by jatropha feedstock, plantation management companies, fuel processing companies and refineries altogether face the challenge to supply up to 31 million MT of jatropha derived jet fuel to the aviation sector every year.