GLOBAL DEVELOPMENT OF THE

ALTERNATIVE AVIATION FUEL INDUSTRY

Airservices International Sustainable Aviation Forum

24 February 2015

Dr. Susan M Pond AM

Global Commercial Aviation Industry

Visualization of global flights http://callumprentice.github.io/

~ 100,000 flights per day; CAGR 3-5%

Jet Fuel MSDS

•  Energy dense mixture of hydrocarbons (43-48 MJ/kg) •  Saturated straight & branched chains + aromatics •  Meets ASTM Intl. D1655 specifications •  10% global oil consumption •  1.5 B barrels pa burn by commercial aviation •  2% anthropogenic CO2e; ~ 700 Mt •  Significant air quality impacts of major airports

Synonyms Aviation Turbine Fuel, Kerosene Turbine Fuel, Kerosene, Jet A-1 Fuel, Jet A Fuel

Molecular Formula Unknown or variable composition, complex reaction products and biological materials (UVCB)

Components Cas No Weight % Kerosene ( C9-16) 8808-20-6 100 Naphthalene 91-20-3 0-3

IATA Targets to Mitigate Emissions

•  Average increase in fuel efficiency, 1.5 % pa •  Cap on net aviation CO2e from 2020 (C neutral growth) •  Reduction in net aviation CO2e by 2050, relative to 2005 •  Solutions based on 4 pillars

–  Improved technologies, including Jet A containing synthesized hydrocarbons (ASTM D7566)

–  More efficient aircraft operations –  Improved infrastructure & systems, e.g. air traffic control –  Market-based measures to fill any CO2e gap

www.iata.org/policy/environment/Pages/climate-change.aspx

Critical Success Factors for ASTM D7566 Certified Jet Fuel Industry

•  Compatible with aircraft, engines, infrastructure (drop-in) •  Fuel meets D7566 specifications – conventional + synthetic

blended components •  Sustainable – globally harmonized criteria preferable •  Economic viability - eventual minimal or no cost differential •  Policy stability & alignment across all transport modes •  Innovation ecosystem support for scale-up/deployment •  Cooperation & communication across entire spectrum of

customers, corporations and government •  Public private partnerships – e.g. CAAFI, aireg, ITAKA •  Global and country targets

FT September

2009

Conventional Fuel

HEFA July 2011

DSHC June 2014

Bio-Crude

Syn-Crude

Hydroprocessing

Conventional Refinery Processes

Jet Fuel Blending

Component

Crude Oil

FT 50%

HEFA 50%

SIP 10%

Slide courtesy of Mark Rumizen, US Federal Aviation Administration

ASTM D7566 Approved Jet Fuels

….. We draw added customers fo Co-Products Create Economic Viability Product mix set by feedstock & process chemistry

•  High value chemicals •  Lubricants; de-icing fluid •  Diesel for trucks/buses etc.

•  More than 1600 flights/20 airlines thus far •  Some regular city pair flights; Lufthansa 1,200 flights

Hamburg & Frankfurt •  Mostly HEFA from used cooking oil, oil seeds, algae

ASTM D7566 Fuel Passenger Flights

Lufthansa – Frankfurt to Berlin with 10% DSHC (Amyris Total)

Sep 2014

Used cooking oil, 13 April 2012 Qantas Shell Aviation Biofuel Feasibility Study, June 2013

Biodiesel Ground Transport, May 2012 Actively progressing opportunities for Australia

Country Targets Driving Innovation

•  Brazil – IATA Targets •  EU Flight Path 2050 Objectives - 70% reduction

CO2e/passenger km •  Germany – 10% alternative jet fuel by 2025 •  Israel – replace share of oil in transportation

sector by 60% by 2025 •  UK – Sustainable Fuels UK Roadmap – AJF

produced in UK reduce CO2e up to 24% by 2050 •  US FAA & CAAFI - 5% alternative jet fuel (1B

gallons) per annum by 2018

Global Green Diesel & HEFA Production

AltAir

30 M Gallons CA (Est. 2015)

Diamond Green Diesel

137 M Gallons LA

Sinopec 6 M Gallons

China

Neste Oil 240 M Gallons

Singapore

REG 75 M Gallons

LA

Eni 100 M Gallons

Italy

Neste Oil 114 M Gallons

Finland

Neste Oil 240 M Gallons Netherlands

Petrixo 310 M Gallons

Fujairah, U.A.E. (Est. TBD)

SG Preston 120 M Gallons

OH (Est. 2017)

UPM 38 M Gallons

Finland

Slide courtesy of Michael Lakeman, Boeing

Jet blends from green diesel could supply 1% of global jet demand

© Copyright 2007- NextEnergy Ltd.

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•  Collaboration announced 2010 •  Binding commitments, 2012 •  Feedstock, ~ 565,000 MT London

rubbish – co-benefit for city •  39 M gallons (0.15 GL) FT jet &

diesel + naphtha •  Thames estuary site, Pre-FEED

complete •  Project construction start 2016

Pending ASTM D7566 Approvals Acronym Synthetic Process ASTM D7566

Approved ATJ Alcohol to jet (Sep 2015) CH Catalytic Hydrothermolysis (2016) DSHC Direct Sugar to Hydrocarbons (C10) ✓ FT Fischer-Tropsch ✓ FT-SKA FT Synthetic Paraffinic Kerosene with Aromatics FT-SPK FT Synthetic Paraffinic Kerosene HDCJ Hydroprocessed Depolymerized Cellulosic Jet (2016) HEFA Hydroprocessed Esters and Fatty Acids ✓ SAK Synthetic Aromatic Kerosene SK Synthetic Kerosene SKA Synthetic Paraffinic Kerosene with Aromatics SPK Synthetic Paraffinic Kerosene

New, Different & Hot in Deployment of Aviation Biofuels in 2014

•  Boeing & SAA, Project Solaris, energy rich tobacco plants

•  SAS, Lufthansa, KLM & Statoil agreement for regular supply at Oslo Airport

•  First flights for SAS and Norwegian Air with aviation biofuel from used cooking oil

•  Southwest Airlines, Red Rock Biofuels agreement on aviation biofuel - forest residues

•  UOP and Petrixo Oil & Gas to produce green jet fuel and diesel in UAE

•  US Navy’s Air Systems Command – F/A-18 supersonic flight on alcohol-to-jet

•  RAN announced plans to run 50 vessels on 50/50 biofuels by 2020 & participate in 2016 GGF

Jim Lane, Editor Biofuels Digest www.biofuelsdigest.com/bdigest/2015/02/19

•  From April 2015, Military diesel (F-76) and jet fuel (JP-5) may contain synthesized hydrocarbons •  Synthetic hydrocarbons in bulk fuels now part of

supply contracts •  By 2020, 50% energy will come from alternative

sources •  Great Green Fleet in 2016

Low Carbon Transport on the Move

Save the Date

Sydney 14 May 2015

http://ussc.edu.au/research/alternative-transport-fuels-initiative