BIOFUELS FOR AVIATION TECHNOLOGY BRIEF

February 2017 www.irena.org Copyright (c) IRENA 2017 Unless otherwise stated, material in this brief may be freely used, shared, copied or reproduced, provided that all such material is clearly attributed to IRENA. Material attributed to third parties may be subject to third-party copyright and separate terms of use and restrictions.

ISBN web: ISBN 978-92-95111-02-8 ISBN print: ISBN 978-92-95111-01-1 Citation: IRENA (2017), Biofuels for aviation: Technology brief, International Renewable Energy Agency, Abu Dhabi.

ABOUT IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.

ACKNOWLEDGEMENTS This brief benefited greatly from reviews by Anselm Eisentraut and Henrik Erämetsä (NESTE), Pharoah Le Feuvre (IEA), Dolf Gielen (IRENA), Ric Hoefnagels and Sierk de Jong (Utrecht University), Michael Lakeman (Boeing) and Kyriakos Maniatis (European Commission).

Contributing authors: Susan van Dyk and Jack Saddler (University of British Columbia), Francisco Boshell, Deger Saygin, Alessandra Salgado and Amr Seleem (IRENA)

For further information or to provide feedback: [email protected]

Disclaimer This brief and the material featured herein are provided “as is”. Neither IRENA nor any of its officials, agents, data or other third-party content providers provides any warranty, including as to the accuracy, completeness, or fitness for a particular purpose or use of such material, or regarding the non-infringe- ment of third-party rights, and they accept no responsibility or liability with regard to the use of this brief and the material featured therein. The information contained herein does not necessarily represent the views of the Members of IRENA. The mention of specific companies or certain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The des- ignations employed and the presentation of material herein do not imply the expression of any opinion whatsoever on the part of IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Photographs from Shutterstock unless otherwise indicated. Contents

Insights for policy makers...... 2

Highlights...... 8

Process and Technology Status...... 15

Technologies for oleochemical conversion processes...... 18

Thermochemical routes to turn biomass into bio-jet fuel...... 21

Biochemical routes to turn biomass INto bio-jet FUEL...... 26

Hybrid conversion processes...... 28

Preparing for take-off: Capacity and market potential...... 29

Jet fuel consumption and future projections...... 32

Market prospects...... 35

Performance and Cost...... 36

Potential and Barriers...... 39

Policies to promote bio-jet production and consumption...... 40

Conclusions...... 44

References...... 46 Insights for Policy Makers

»» If the aviation sector were a country, navigational systems. However, a it would be the eighth-largest significant longer-term reduction emitter of greenhouse gases (GHG) of emissions would require in the world, at 2% of the human- airlines to use more fuels that are induced total. In 2010, carbon renewable and sustainable, such as

dioxide (CO2) emissions from biofuels developed for jet aircraft international aviation amounted to (Figure 1). 448 gigatonnes (Gt), with forecasts of increased emissions ranging »» Although sustainable and clean from 682 Gt to 755 Gt by 2020, alternative propulsion technologies and as high as 2700 Gt by 2050 are in development, such as if no action is taken (ICAO, 2016).1 electric- or solar-powered aircraft Airlines carried nearly 3.6 billion and the use of cryogenic hydrogen, (bn) passengers in 2015. these options are unlikely to be ready for commercial use until »» Given this sector’s growing well after 2050. Given that aircraft

contribution to global CO2 have a long life span and are very emissions, aviation will play a key expensive, airlines typically want to role in meeting the international use them as long as possible before climate targets set forth in the 2015 replacing them. Paris Agreement, even though the document does not specifically »» Biofuels for jet aircraft are known mention aviation emissions. in the industry as “biojet” or “bio- jet” fuels. They are the only real »» Many airlines, aircraft option to achieve significant manufacturers and industry reductions in aviation emissions by associations have committed to 2050. Bio-jet fuels can be derived voluntary, aspirational targets that from sustainable sources such as would collectively achieve carbon- vegetable oils and animal fats, and neutral growth by 2020 and a 50% existing jet engines do not require reduction in GHG emissions by modifications for their use. 2050 (relative to 2005 levels).

»» Emissions can be reduced by 1.5% annually through improved fuel efficiency in new aircraft, aircraft modifications, airport restructuring, and optimised

1 Based on a calculation of 316 kilograms (kg) of

CO2 emitted per kg of fuel, and forecasts for fuel consumption increases.

2 Biofuels for Aviation | Technology Brief Figure 1: Emissions from aviation in the absence of any action, and emissions-reduction goals set by the industry

No action 2

Carbon-neutral growth

Improve fleet Cap net By 2050, net

Million tonnes of C0 Million tonnes fuel efficiency emissions from aviation carbon -50% by 2050 by 1.5% per 2020 through emissions will be year from carbon-neutral half what they now to 2020. growth. were in 2005.

2005 2010 2020 2030 2040 2050

Known technology, operations Net emissions trajectory and infrastructure measures ‘No action’ emissions Biofuels and additional new-generation technology Economic measures including carbon trading Source: Air Transport Action Group

Bio-jet fuels can potentially reduce GHG Achieving the GHG emissions- emissions compared to fossil-based reduction targets proposed by the jet fuel, according to a well-to-wheel aviation industry (Figure 1) and by life-cycle analysis. However, the organisations such as the International emissions-reduction potential of different Civil Aviation Organisation (ICAO) feedstocks may differ significantly, will require a significant increase with values ranging from 50% to 95% in bio-jet fuel production and of the claimed potential reduction consumption. The exact volumes when compared with fossil jet fuel2 required to achieve specific goals (EU Directives, 2015). are not clear because of factors such as the aviation sector’s future fuel consumption, the extent of emissions reductions achieved through offsets,3 and the specific emissions-reduction potential of various options for making

2 The EU Renewable Energy Directive, Annex V, bio-jet fuels, which are called pathways. Section B contains default values for GHG savings through biofuels, which can be used as a guide- line. Diesel using a wood-based Fischer-Tropsch process has a default value of 95%, for example,

while typical GHG savings values for hydrotreated 3 A carbon offset is a reduction in emissions of CO2 vegetable oil range from 40% to 65% based on or GHG made in order to compensate for or to different feedstocks. offset an emission made elsewhere.

Biofuels for Aviation | Technology Brief 3 Fuel consumption for international The oleochemicals-to-bio-jet fuel aviation could be as high as 852 million pathway will not supply all future needs, tonnes (Mt) by 2050 (ICAO, 2016), but is the foundation technology used to and could require 426 Mt of bio-jet to establish initial supply chains. Advanced meet the GHG emissions-reduction technologies have the potential to goals. Current production, however, is currently very limited, at less than 0.1% meet long-term goals, but are at leave of global total consumption of all types five to 10 years away from commercial of jet fuels. This technology brief will maturity. These technologies use other explain how supply at that level will feedstocks, such as forest or agricultural require significant policy, technological, matter or other lignocellulosic biomass, and supply-chain support for bio-jet fuel waste streams,5 and algae. The most development. The effort would be similar likely conversion technology for these to what was required in the U.S. and advanced-bio-jet pathways will likely be Brazil to establish conventional biofuels such as bioethanol and biodiesel for thermochemical, instead of biochemical. road transportation. This is because intermediate products derived from biochemical routes will The vast majority of bio-jet available now is derived from oleochemical4 likely fetch a higher price from buyers feedstocks such as vegetable oil, outside the aviation sector. animal fats, and used cooking oil (UCO). However, costs for these feedstocks, as well as supply and sustainability concerns, make it impossible to scale up production to meet demand.

“Conventional bio-jet” will establish initial supply chains, while “advanced bio-jet” technologies, based on lignocellulosic biomass or algal feedstocks, are developed

5 Waste streams include can be either municipal solid waste or industrial waste. The latter category 4 An oleochemical is a chemical compound derived includes waste gases from the steel, chemical or industrially from animal or vegetable oils or fats. cement industries.

4 Biofuels for Aviation | Technology Brief As of May 2016, the American Society (HEFA-diesel), for which there is a for Testing and Materials (ASTM) had larger market and higher sales prices. certified four different technology Producers are therefore focused on pathways to produce bio-jet fuels. this product instead of on HEFA-jet. ASTM certification is required before HEFA-diesel is also known as green commercial airlines can use a fuel for diesel or hydrotreated renewable diesel. an international flight. The four pathways Two production facilities based on the are: FT pathway were expected to begin production in late 2016 in the U.S. In • Hydroprocessed Esters and total, the operational capacity of the Fatty Acids (HEFA bio-jet), using world’s current HEFA facilities is about 4.3 bn Liters per year. Even if all of this oleochemical feedstocks such as were to be used to make bio-jet, supply oil and fats. This is the foundation would still amount to less than 1.5% of technology, which ASTM certified the world’s jet fuel requirements. in 2011. Although bio-jet biomass through • Gasification through the Fischer- gasification and subsequent FT Tropsch method (FT), using conversion is not yet a commercial municipal solid waste (MSW) or activity, two facilities are planned. The woody biomass as feedstock. ASTM companies building them are Fulcrum certified it in 2009. Bioenergy, with a planned production of 37 m L/y of biofuel from MSW; and • Synthesised Iso-Paraffinic fuels Red Rock Biofuels, with a planned (SIP), formerly known as the direct production of 45 m 1 bn L/y. using wood sugars-to-hydrocarbon route as the feedstock. Kaidi has proposed a (farnesane). Certification came in third facility in Finland, with a capacity 2014. of 1 L/y. These volumes describe the anticipated total fuel production of each • Alcohol-to-jet based on isobutanol plant, of which bio-jet would be only (ATJ), certified in 2016. one type.

Today, the vast majority of currently The development and deployment of available commercial volumes of bio-jet fuels, primarily HEFA bio-jet, has bio-jet fuels are HEFA bio-jet, and a progressed from single demonstration number of commercial-scale facilities flights by airlines or equipment can produce it.6 However, the same manufacturers to multi-stakeholder process also creates renewable diesel supply-chain initiatives including equipment manufacturers, airlines, fuel producers and airports. 6 Note that most of these facilities would have to modify their production process in order to produce jet fuel.

Biofuels for Aviation | Technology Brief 5 Although several airlines have invested of palm oil8 was USD 0.45/L, while in bio-jet production and research, the price of jet fuel was USD 0.25/L. most are simply customers that have Pricing for advanced bio-jet fuels based signed short-term off-take agreements on lignocellulosic feedstocks is less to use bio-jet in trial runs. There are clear as these technologies are still in now about 100 bio-jet initiatives, and in the demonstration phase and not yet the period from 2009 to 2015 the pace commercially available. However, they of new ventures has increased from are also expected to cost more than fossil less than five a year to a range of 10 fuels. Another challenge for the aviation to 20. Examples include, in the Middle sector will be competition with ground- East, the Abu Dhabi-based airline based transportation biofuels such as Etihad’s supporting for research on biodiesel, for which some governments halophytic (saltwater-tolerant) plants as have already established policies to feedstock for bio-jet fuels. Leadership encourage feedstock production and from individual countries could come biodiesel use. Currently, there are no from the U.S. and Brazil, thanks to policies that would encourage the their experiences establishing ethanol preferential diversion of oleochemical- markets and because of the availability derived feedstocks (vegetable or of sugar- and starch-based feedstocks animal) from road-transport fuels to in those countries. Large palm-oil aviation. producing countries, such as Indonesia and Malaysia, could also explore the use Specific policies to promote bio-jet of this crop for bio-jet. will be crucial if the global aviation sector is to reach its 2020 and 2050 One of the main reasons such small targets for GHG emissions reductions. amounts of bio-jet are currently used The international nature of air travel will is the high cost of production. This is a further complicate policy development. major challenge because fuel accounts At the international level, the ICAO for about 30% of the total expense of has reached an agreement on a global operating an airline.7 HEFA-bio-jet has market-based measure (GMBM) scheme historically cost more than fossil-derived to reduce aviation-derived carbon jet fuels, and potential feedstocks for emissions through offsetting9 (see HEFA-bio-jet alone often cost more footnote 3). However, implementation than traditional jet fuel, with the cost will not begin until 2021, and emissions of converting them into HEFA-bio-jet from some countries, particularly adding to the price gap from there. developing ones, are unlikely to be In January 2016, for example, the cost 8 Used here as a reference point as it is the lowest priced vegetable oil. 9 www.icao.int/Newsroom/Pages/Historic-agree- ment-reached-to-mitigate-international-aviation- 7 www.atag.org/facts-and-figures.html emissions.aspx

6 Biofuels for Aviation | Technology Brief regulated. Although carbon offsets Indonesia, have proposed a bio-jet will contribute to global emissions mandate. However, there are currently reductions, it is unclear whether no bio-jet-specific policies to encourage they will drive bio-jet development. commercialisation of the entire supply Comprehensive policies are highly chain, as there were for bioethanol and likely to be needed at both the national biodiesel when those fuels were at the and international levels to incentivise development stage bio-jet is at now. This bio-jet production and consumption. is mainly due to the international nature Currently, the Netherlands, Norway of aviation. There is a greater degree of and the U.S. have established policies local control over road transportation, to encourage bio-jet fuel production, making policy reforms and targets easier and some others have announced to conceive and implement. aspirational targets. Others, including

Biofuels for Aviation | Technology Brief 7 Highlights

Current technological developments in conventional and advanced bio-jet fuels

The aviation sector uses specificThis pathway accounts for the vast fuels to power aircraft, and these majority of existing bio-jet. Although a are usually classified as Jet A1 fuels number of HEFA facilities are currently in most regions. All jet fuel has to operating at a commercial scale, they meet strict specifications, with ASTM predominantly produce HEFA diesel, providing the most common standards not bio-jet. Only AltAir Fuels has worldwide, including for renewable and dedicated bio-jet production capability, sustainable fuels. However, as has been partly because of the policy drivers demonstrated during several ASTM in the U.S. and the state of California, certification processes, certification and because of the company’s off-take of a bio-jet conversion-technology agreements with airlines. Other major pathway through ASTM can take HEFA producers include Neste (with years and includes rigorous fuel testing manufacturing locations in Rotterdam, and evaluation. The four different Singapore, and Finland), Diamond advanced technology pathways certified Green Diesel (Louisiana), REG (Geismar, under the ASTM standard D7566 as Louisiana), and ENI (Italy). Any HEFA of June 2016 are briefly assessed below. facility that produces bio-jet also produces HEFA diesel. The FT method uses high-temperature treatment of any type of biomass (such The other two advanced bio-jet as wood waste, agricultural residues or pathways now certified are SIP and municipal solid waste, known as MSW) ATJ. SIP bio-jet is produced biologically to produce a synthesis gas, which is then through the fermentation of sugars by used to generate synthetic hydrocarbon microorganisms to create a hydrocarbon fuels over catalysts. Although this was molecule called farnesene. This is treated the first bio-jet pathway to obtain with hydrogen to make another molecule certification, coal was gasified for jet called farnesane, which can be blended fuel first. with petroleum-derived jet to produce a bio-jet fuel blend. The ATJ route also What is termed conventional bio-jet involves the fermentation of sugars to in this briefing note includes alcohols, such as ethanol or butanol. aviation biofuels derived from the These are subsequently upgraded to hydroprocessing of oils and fats bio-jet, as demonstrated by companies (oleochemicals) to make HEFA. such as Swedish Biofuels and Gevo.

8 Biofuels for Aviation | Technology Brief Although the FT pathway was the first to ASTM certification is a measure of a be certified, commercial volumes of bio- pathway’s progress, as is its fuel jet from biomass are small because of readiness level (FRL), an indicator several challenges. They include syngas created by the Commercial Aviation Alternative Fuels Initiative.10 These clean-up, catalyst contamination and are important considerations for the economies of scale. Usage of SIP and eventual commercialisation and supply ATJ bio-jet are limited because these of bio-jet, but they do not reflect the routes are expensive and because production status or likely economics the intermediates, such as butanol of a particular pathway. As well as the and farnesene, are worth more as pathways described earlier, there are chemical feedstocks or for applications several other ways of producing bio- in the cosmetics and pharmaceutical jet, some which are in the process of industries. The ATJ route from isobutanol achieving ASTM certification and should be included in any assessment. For only received certification in 2016, example, a fuel which blends fossil jet so uptake of this bio-jet may increase. with low percentages of green diesel Certification of another pathway (hydrogenation derived renewable based on ethanol could further diesel, or HDRD) is currently in the increase uptake. certification process.

10 www.caafi.org/information/fuelreadinesstools.html, FRL is a scale reflecting fuel development

Biofuels for Aviation | Technology Brief 9 Global and Regional Market Prospects According to the U.S. Energy (3.8 bn L) of bio-jet could be produced Information Administration, the world’s by 2018, and the U.S. Air Force hopes to aviation sector used 310 bn L of jet fuel replace 50% of conventional fuels (another in 2012, accounting for 12% of global 3.8 bn L) with renewable alternatives. consumption of transport fuels.11 The Similarly, the European Union (EU) has aviation sector is expected to grow by suggested a target of 2 Mt of bio-jet about 3% per year, but growth in the fuel could be produced and used in the use of jet fuel will likely be slightly lower Eurozone by 2020 (2.5 bn L). because of increases in fuel efficiency. Recent reports have indicated that Growth is expected to be driven by the EU is unlikely to reach this target.13 Asian, African and, to a lesser extent, Indonesia announced plans to mandate Latin American markets, as economies in a 2% market share for bio-jet by 2018,14 these regions expand (Millbrandt, 2013). and other countries that have proposed ICAO expects jet fuel consumption for bio-jet initiatives include Australia, international travel to increase by 2050 Brazil, China, and South Africa. Although to between 710 bn L and 1065 bn L there is significant market pull for bio- (ICAO, 2016).12 jet development, such as animal fats, At this time, targets for bio-jet UCO and tall oil. Biomass-derived bio-jet production are mostly aspirational. The expansion will initially be restricted by U.S. Federal Aviation Administration slow technology development and high (FAA) suggested that 1bn gallons investment and production costs.

11 This includes jet fuel for international and 13 http://ec.europa.eu/transport/modes/air/ domestic aviation. aviation-strategy/documents/european-aviation- 12 568 Mt to 852 Mt, with a conversion factor of environmental-report-2016-72dpi.pdf 0.8 kg/L, meaning each tonne of jet fuel is 1250 L. 14 This was amended from the initial proposal of These values may vary depending on the specific 2016. www.icef-forum.org/annual_2015/speakers/ density and are used only as a reference. october8/cs3/alb/pdf/20100_yusfandri_gona.pdf

10 Biofuels for Aviation | Technology Brief Performance and Cost

Bio-jet offerings must be drop-in EU aviation”, estimated that a premium fuels; functionally equivalent to jet fuel of EUR 1,500/t over and above the price (IEA Bioenergy, 2014) and performance of jet fuel would be required to make must be equal to or better than fossil- bio-jet competitive (Maniatis et al., 2013). derived jet fuels. Current ASTM-certified For the HEFA pathway, feedstock costs bio-jet can be used in blends of up to 50% are considerably higher than the cost of with fossil derived jet fuel, depending on fossil-derived jet fuel. The likely cost of the type. SIP cannot account for more advanced bio-jet alternatives based on than 10% of the overall mix, and ATJ 30%. biomass or algal feedstocks is less clear The absence of aromatics in this type of bio-jet restricts higher proportions. A as these are not currently available at blend with fossil jet fuel allows sufficient commercial quantities. quantities of aromatics to ensure the Although several technical and economic integrity of engine seals of the aircraft. analyses have assessed the biomass- Notably, in several cases, bio-jet may to-bio-jet pathways, many assumptions have improved properties, such as were required because of limited data reduced sulphur oxide (SO2) and other and experience (de Jong et al., 2015). emissions (ICAO, 2016). Most of these assessments have shown that it would be difficult to compete on Currently, the cost of producing bio-jet costs with fossil fuels, despite several of is not competitive with fossil-derived these analyses estimating the cost of jet fuel costs; the price of jet A1, for operating multiple and more established example, was USD 0.36/L at the end of plants, and therefore benefitting from May 2016 (IndexMundi, 2016). economies of scale. Current experience Even when oil prices were considerably with cellulosic ethanol plants has shown higher than their current level of about that these initial pioneer plants are USD 50 per barrel (USD 0.36/L),15 bio-jet far more costly to build and run than is significantly more expensive: generally conventional ethanol plants. in a range from two to seven times more In the U.S., however, HEFA diesel is than fossil derived jet fuel (IATA, 2015). competitively priced once government In September 2013, an EU report, policy support is included. Thus, in at least that country, the cost challenge can entitled “2 million tons per year: be addressed through policy measures. A performing biofuels supply chain for

15 One oil barrel is defined as 42 gallons, and about 159 Ls.

Biofuels for Aviation | Technology Brief 11 Potential and Barriers The greatest potential of bio-jet fuel However, the cost of bio-jet is one of lies in its ability to significantly reduce the most daunting barriers. Although GHG emissions in the aviation sector ongoing low oil prices will likely delay and positively impact climate change. the development of some bio-jet This is one of the most important technologies and projects, lower oil considerations for their development. prices might be less of an issue for The strong and ongoing commitment aviation biofuels than for other sectors, of the aviation sector and the active involvement of an increasing numbers because it is in the industry’s best of stakeholders such as airlines and interest to find long-term solutions. many aviation organisations to develop However, when oil prices are at about bio-jet through voluntary initiatives USD 50 per barrel (USD 0.36/L) bio-jet has been a major driving force behind is significantly more expensive, and the 16 bio-jet development and consumption. price gap will be difficult to close. Airlines Moreover, the number of commercial generally have low profit margins, and flights using bio-jet has increased do not generally consider themselves significantly over the last few years, and a downstream supply chain has able to pay a premium for fuel. This will developed in some places. make it difficult for the airline industry to reach carbon neutrality by 2020. This Oslo’s Gardermoen airport now offers means that policy measures could be bio-jet through its hydrant fuel-supply crucial to promote the production and system. Recent bio-jet initiatives at consumption of bio-jet fuels. other airports in Los Angeles, in the U.S., and in Karlstad, Sweden, have further The lack of mature technologies is also helped demonstrate proof of concept and can serve as a model for expansion. a significant barrier. The HEFA pathway Positive trends toward overcoming is the only mature process, but the remaining technical obstacles include cost of the oleochemical feedstock ongoing research and development and is high, at about 80% of the cost of the proposed construction of several making bio-jet. The cost of vegetable new facilities. There has been significant oils has historically tracked the price progress in ASTM certification of more of oil, making it likely that feedstock bio-jet pathways over the past few years, costs will always be challenging. and the approval process is now faster.

16 The ICAO Global Framework for Alternative Aviation Fuels (GFAAF) can be consulted for more details on initiatives and investments. www. icao.int/environmental-protection/gfaaf/Pages/ default.aspx

12 Biofuels for Aviation | Technology Brief Alternative feedstocks that are need to be developed and optimised, considered more sustainable will as is underway in the cellulosic-ethanol likely suffer from a lack of availability, industry. The global forest-products preventing significant production sector also has well-established supply increases. They include UCO, tallow, chains, but these have mainly focused tall oil, and non-edible crops such as on timber and pulp-and-paper products. camelina. Some time would also be needed to develop and optimise Over the last 10 to 15 years, global yields and new supply chains for crop wood-pellets supply chains have been feedstocks. As well, the potential is developed, primarily based on forest finite to increase the supply of other and mill residues. The lower prices that oleochemical feedstocks, such as those the forest sector typically obtains when just mentioned or from residues from selling energy products or carriers such palm-oil processing and other industries. as pellets (as compared to lumber or pulp) are an example of the problems Another challenge is that any of of both moving biomass over longer these options will put bio-jet in direct distances and the difficulty in making competition with the current biodiesel this a profitable activity without policy industry, where there is more demand support. To be economically attractive, and more-developed supply chains. This bio-jet will likely have to be produced suggests that there won’t be enough from low-value residues and waste from bio-jet to achieve GHG-reduction goals forests, agriculture or MSW. Analysis unless at least one of the lignocellulose- has shown that the minimum sale price to-bio-jet pathways, such as SIP or ATJ, for bio-jet is very sensitive to the cost are commercialised. of feedstock, so optimisation of these supply chains will be essential. Another The cost of the lignocellulose feedstocks significant near-term barrier is the should be lower, and not as closely limited supply of commercially available correlated to oil prices. Availability is bio-jet, resulting in small batch deliveries expected to be much greater. However, to aircraft distribution is done through biomass-feedstock supply chains still an airport’s hydrant system.

The use of oleochemical feedstocks such as vegetable oils or animal fats to make bio-jet will result in direct competition with the current biodiesel industry

Biofuels for Aviation | Technology Brief 13 These challenges highlight the Emissions Trading System (ETS), importance of policy support for which covers aviation emissions within bio-jet and its supply chains. Incentives the EU. Although this arrangement will be required to bridge the price could possibly result in a sector-wide gap between fossil-derived jet fuel approach, progress has been slow.

and bio-jet. Bio-jet. There are some The ICAO recently agreed to a CO2 policy supports in place that can be standard for aircraft, and an agreement replicated elsewhere, such as in the U.S., on global market-based measures will where bio-jet is eligible for renewable be implemented by 2020. This means identification numbers (RINs) via the that regulation of sector emissions has U.S. Renewable Fuel Standard, under been delayed until then, along with the existing categories D4, D5 or D7. creation of incentives to use bio-jet This is a strong incentive for bio- fuels. jet production, but may not be sufficient because the RIN value The second significant barrier to bio-jet would be the same as for other development is the limited ability of advanced fuels in these categories, individual countries to create national such as biomass-derived diesel. As a policies that can incentivise bio-jet high specification fuel, bio-jet requires additional processing for its production, development at an international level. thus making it more costly to produce. For example, fuel for international flights Bio-jet fuels are unlikely to compete is not usually taxed, so tax credits are with advanced biofuels under these not an option as an incentive. As a result, categories without specific incentives novel and internationally relevant policy designed for them. An example from approaches are required. The Netherlands is the expanded use of “biotickets” for bio-jet (Hamelinck et al., 2013).17

Two other significant barriers remain. One is the international nature of aviation, with regulation of emissions handled by the ICAO instead of at a national level. The one exception, albeit at a regional level, is the EU

17 The recent ILUC directive amended the European Fuel Quality Directive (FQD) such that member states may permit aviation biofuels to be used to fulfil the biofuel target as specified in the Renewable Energy Directive (the same structure that is used in The Netherlands). See also Source: Directive 2015/153 amending FQD (98/70/EC) and the RED (2009/28/EC). http://eur-lex.europa.eu/legal- content/EN/TXT/PDF/?uri=CELEX:32015L1513&fro m=EN (article 2a)

14 Biofuels for Aviation | Technology Brief Process and technology status

The aviation sector requires drop- • SIP: biochemical conversion in bio-jet fuels that are functionally processes, such as the biological equivalent to fossil fuel and that are conversion of biomass (sugars, fully compatible with the existing starches or lignocellulose-derived infrastructure (IEA Bioenergy, 2014). feedstocks) to longer chain alcohols and hydrocarbons Jet fuel is a high-specification fuel that must meet standards as defined in ASTM • ATJ: A fourth category includes D6155 for Jet A1, or by the Ministry of “hybrid” thermochemical or Defence Standard 91-91 in the UK. Bio-jet biochemical technologies; the fuel must meet these same standards fermentation of synthesis gas; and in addition have an ASTM D7566 and catalytic reforming of sugars certification. or carbohydrates

In addition to the four pathways that For technologies of any type, a certified to date, several others are technology readiness- level scale is often in the process, such as hydrotreated used to determine the maturity of a depolymerised cellulosic jet and green technology and its closeness to market. diesel (HDRD or HRD). The ASTM The Commercial Aviation Alternative certification procedure is rigorous and Fuels Initiative’s fuel readiness level can take years and millions of U.S. dollars (FRL) scale performs this function for to complete. bio-jet pathways. The scale rates ASTM- certified fuels at FRL7 or higher. The four certified pathways to produce bio-jet fuels are described here and A recent study by Mawhood et al. (2016) shown in Figure 2: evaluated pathways to bio-jet against this scale and concluded that HEFA • HEFA: oleochemical conversion was at FRL9, FT at FRL7 to FRL8, SIP processes, such as hydro- between FRL5 and FRL7, and others processing of lipid feedstocks in a range from four to six. Based obtained from oilseed crops, on this scale, the recent ASTM algae or tallow certification of ATJ would give it a rating of FRL7. What these ratings do • FT: thermochemical conversion not capture, however, is the commercial processes, such as the conversion viability of a certain pathway. As noted of biomass to fluid intermediates earlier, FT bio-jet was certified based on (gas or liquid) followed by catalytic using coal as the feedstock, not biomass. upgrading and hydroprocessing to While the feedstock does not affect hydrocarbon fuels fuel properties, it does have an impact on production potential, production

Biofuels for Aviation | Technology Brief 15 Figure 2: A simplified schematic diagram of different technology pathways to bio-jet fuel

Sugar crop Higher alcohols (e.g. butanol)

Isoprenoids hydrolysis Sugars fermentation (e.g. farnesene)

catalytic Fischer-Tropsch gasification Syngas conversion liquids hytdroprocessing Hydrotreated pyrolysis upgrading

, water Bio-oil

2 pyrolysis oil Biomass fibre Biomass

animal digestion blending Sunlight, C0 Oilseed crop Lipids

Autotrophic algae

cost and technology readiness (RAND A key aspect of bio-jet production is

Corporation and Massachusetts Institute the requirement for hydrogen (H2) to of Technology, 2009). It will also upgrade oxygen-rich carbohydrate, significantly impact the potential of the lignin or lipid feedstocks to hydrogen- rich hydrocarbons that are functionally fuel to reduce GHG emissions. equivalent to petroleum-derived jet fuel. Thus, some type of hydroprocessing This leaves questions about the FT step will likely be required for most pathway, for which certification used bio-jet fuel technology platforms, with coal as a feedstock. This is the closest to external sources of hydrogen used to commercialisation among the advanced remove oxygen in the form of water pathways based on the FRL classification, from the starting material, or to saturate but significant challenges still must be double bonds in a final polishing step resolved if the method is to be useful in (IEA Bioenergy, 2014). Processes that do not require hydrogen can be used, meeting emissions-reduction targets. A including chemical and biological recent report by France’s Académie des processes, but yields will be smaller Technologies and Académie de l’Air et because of the consumption of a portion de l’Espace concluded that vegetable of the feedstock. oil-based HEFA bio-jet is likely to be the only economically viable option in the near future.18

18 www.biofuelsdigest.com/bdigest/2015/10/14/ french-study-says-commercial-aviation-biofuel-still- a-ways-off/

16 Biofuels for Aviation | Technology Brief The amount of hydrogen needed to a ranking of feedstocks by how “easy” produce bio-jet from a feedstock is they are to upgrade. This shows that illustrated by the effective hydrogen oils and fats need the least hydrogen, to carbon ratio, Heff/C, in the biomass feedstocks. This hydrogen-to-carbon and are therefore the easiest, whereas ratio provides a useful metric to better sugars and lignocellulosic biomass need understand and compare the technical the most. and economic challenges of the various drop-in biofuel processes using different The amount required is important to types of biomass feedstocks (IEA determine the overall impact on GHG Bioenergy, 2014). emissions because most hydrogen is This staircase approach, which involves produced by the reforming of natural assessing how much oxygen needs to gas, making fossil-fuel consumption a be displaced by hydrogen, establishes part of the process.

Biofuels for Aviation | Technology Brief 17 Technologies for oloeochemical conversion processes The dominant HEFA pathway uses oil diesel, bio-jet and naphtha, must be and fat feedstocks such as palm oil, separated. used cooking oil and tallow. These “fat- derived” or “oleochemical-derived” The two main technologies used drop-in biofuels are often referred to as commercially to make HEFA are Neste’s HEFA, but are also called hydrotreated NEXBTL and UOP and Eni’s EcofiningTM vegetable oil biofuels (HVO). This processes. The EcofiningTM technology technology is mature and currently has been licensed by several companies operates at a commercial scale. and is used in a number of facilities.

HEFA is notably distinct from fatty Vegetable oils contain about 10 wt% acid methyl ester (FAME) biodiesels, oxygen, which must be removed which retain an oxygen ester and to produce drop-in HEFA biofuels. are therefore too oxygenated to be Hydrotreating of vegetable oils to used as a drop-in biofuel. Almost all remove this oxygen typically consumes of the world’s commercial plants that about 3 wt% of hydrogen. Alternative are able to make HEFA are currently deoxygenation processes that require producing mostly HEFA diesel; but as less or no hydrogen also produce less of 2016, California’s AltAir Fuels had HEFA because of carbon losses as part become the first dedicated HEFA bio- of the process (IEA Bioenergy, 2014). jet production facility. Notably, AltAir’s production process results in a mixture Trials have shown that HVO biofuels of hydrocarbon molecules from which can also be produced by co-processing several products, such as renewable oleochemical feeds with petroleum

Figure 3: Basic diagram of the oleochemical conversion pathway

Lights

Gasoline O OH Fatty acid feedstock Jet

Diesel

18 Biofuels for Aviation | Technology Brief feeds in modern oil refineries, although Department of Energy’s National challenges remain (IEA Bioenergy, Alliance for Advanced Biofuels and 2014). Chevron, Phillips66 and BP have Bioproducts consortium, which is now an ASTM D7566 application underway complete; the European 7th Programme to certify jet fuel produced through the for Research and Innovation; Horizon co-processing of vegetable oils using 2020; and the “Flightpath” programs. this method at a 5% concentration.19 Cooking oil and tallow are much more sustainable, but availability is limited. The vast majority of the drop-in biofuels In the short- to mid-term neither have in aviation trials have used HEFA bio- the potential to contribute significantly jet primarily because the technology is to any increase in the production of mature and ASTM approved, but unless bio-jet. The U.S. Environmental there are incentives to offset the high Protection Agency has estimated that price, oil- and fat-based feedstocks about 3 bn gallons (11.4 bn L) of used are more likely to be converted to cooking oil is produced each year in conventional FAME biodiesel. Another the U.S., resulting in a theoretical yield obstacle to scaling up the HEFA of about 9 bn L of HEFA bio-jet, based pathway is that increasing the fraction on 1.2:1 feedstock to fuel ratio. However, of jet-fuel range products produced much of this feedstock is currently used from oleochemical feedstocks requires to make biodiesel. higher hydrogen inputs (more extensive One strategy for improving costs of hydrocracking) and also results in bio-jet based on the oleochemical lower yields. These extra costs must be conversion route is the use of HDRD considered when developing strategies diesel as a jet substitute. This also to promote increased bio-jet production involves the upgrading of vegetable (IEA Bioenergy, 2014). The proposed oils. Boeing and Neste have applied use of HEFA diesel as a bio-jet blend will for ASTM certification under ASTM minimise additional processing costs. D7566 to blend small amounts of vegetable oil with ordinary jet fuel.20 Vegetable-oil feedstocks require Boeing completed a test flight using a more land to produce than other 15% blend of HDRD in December 2014. feedstock types. Algae and non- Although no information is available food crops such as camelina, grown on costs, this blend should be cheaper as a rotation crop, are examples of to produce than HEFA bio-jet, as the oleochemical feedstocks that require blend is likely to require less processing less land. These have been assessed and result in potentially higher yields. by various initiatives, such as the The process is similar to current HEFA U.S. Department of Agriculture diesel production. “farm-to-fly” program; the U.S. 20 www.neste.com/fi/en/neste-and-boeing-lead- industry-commercialization-renewable-aviation- 19 www.caafi.org/news/News.aspx?id=10251 fuels

Biofuels for Aviation | Technology Brief 19 It differs in that longer carbon-chain to improve the cold flow properties of lengths from vegetable oils are not the blend, allowing low bio-jet blends cracked into shorter jet-range molecules. that still meet the overall specifications Instead increased isomerisation is used for jet fuel.

20 Biofuels for Aviation | Technology Brief Thermochemical routes to turn biomass into bio-jet fuel

The major challenges for (HTL). The FT process uses gasification thermochemical routes to bio-jet combined with synthesis to produce differ mainly in conversion-process bio-jet. Several commercial facilities efficiency and technology risks, based on gasification-FT are planned, although feedstock choices can also and this pathway is discussed in more result in qualities in the end product. detail below. The pyrolysis route to bio- Thermochemical routes used to jet is known as HDCJ (hydrotreated turn biomass into bio-jet involve the production of three main products, in depolymerised cellulosic jet). An ASTM different ratios: bio-oil, synthesis gas application for HDCJ was initiated and char. The two main thermochemical by KiOR, but the company is now in routes to bio-jet are gasification and bankruptcy, creating a setback for the pyrolysis, and hydrothermal liquefaction certification of this pathway.

Figure 4: Schematic of thermochemical conversion routes Catalytic Upgrading Intermediates

Gases ~500C No O 2 Hydro Hydro HPO Pyrolysis treatment treatment oil 1 2 Gasoline

Biomass Jet FT liquids Gasification Syngas Fischer Syngas clean-up ~900C Tropsch Diesel some O2

Biofuels for Aviation | Technology Brief 21 Gasification

Gasification involves the heating of small and not biomass. The feedstock that feedstock particles at high temperatures is used to make FT syngas can result in a controlled-oxygen environment in different products during and after to produce synthesis gas, which is gasification. This significantly influences

comprised of mostly H2 and carbon the composition of the syngas. For monoxide and typically called syngas. efficient fuel production, a desirable Syngas converts to numerous gaseous syngas should be a mixture of H2 and and liquid chemicals or fuels via the CO only, with all contaminants removed. FT process using catalysts. This process produces a mixture of hydrocarbon Gasification of biomass typically results molecules from which various fuels and in considerable tar formation that needs chemicals can be extracted. to be cleaned up, and the high oxygen content of biomass impacts the ratio Gasification and FT have been used of H to CO in the synthesis gas. As since the 1980s by South Africa’s Sasol 2 a result, biomass-derived syngas is company to convert coal into fuels, at a less energy dense than syngas derived current capacity of 160 000 barrels per from natural gas, has a lower ratio day (b/d). The FT process is also used in of hydrogen to carbon, and contains the world’s largest natural gas-to-liquids more impurities. Typically, biomass plant, Shell’s Pearl facility in Qatar. It and MSW-derived syngas needs to be was completed in 2011 and produces enriched in hydrogen and cleaned of 140 000 b/d of fuels (IEA Bioenergy, 2014). Although bio-jet could potentially impurities such as tars, nitrogen and be produced via this process, using other atoms comprised of anything biomasses such as black liquor or bio-oil other than carbon or hydrogen. These as a feedstock, various challenges have impurities can deactivate the synthesis prevented this on a commercial basis. catalysts. Although cleaning syngas is technically possible, it has proven to be Bio-jet produced via FT was certified by costly. Plasma gasification is another ASTM in 2009, at up to 50% of a blend way to produce a very clean syngas, but with conventional jet fuel, but it was has also proven to be significantly more produced using coal as the feedstock expensive.

22 Biofuels for Aviation | Technology Brief To date, gasification technologiesCurrent FT technology results in a have entailed high capital costs to maximum of about 40% of the final both gasify the biomass and convert product comprised of bio-jet fuel the resulting syngas to FT liquids or and middle distillates, requiring the partially oxygenated liquid hydrocarbon marketing of the other 60% of the products such as mixed alcohols (IEA output. Bioenergy, 2014). These types of coal- or natural gas-fed facilities have been Commercial biomass-gasification built at a large scale in the hopes of facilities under construction include capturing economies of scale. The those of Fulcrum Bioenergy and Red capital cost estimates for a first-of-its- Rock Biofuels, in U.S. Kaidi has proposed kind commercial gasification-based building an FT facility in Finland. facility range from USD 600 m to USD These pioneer plants should provide 900 m, and would typically have the invaluable insights and lessons for capacity to produce 2 000 t per day future investment. Many people believe of dry biomass (Swanson et al., 2010). that costs for the FT route could fall Although this is a significantly smaller considerably as the technology matures. size than current facilities based on coal Fulcrum Bioenergy claims to be able to and natural gas, logistics challenges produce FT transportation fuel at less will be likely because biomass is a less than USD 1 per gallon21 (USD 0.26/L) energy-dense feedstock. using MSW as a feedstock.

Some of these anticipated supply-chain A proposal from Solena and British challenges can be mitigated through Airways to use MSW in a gasification the use of alternative feedstocks such as process was recently cancelled. Solena pyrolysis bio-oils, which are more energy hoped to use plasma gasification dense than wood. Because a range of technology that was likely to cost hydrocarbon molecules are produced by significantly more than what Fulcrum the FT process, large-scale facilities are will use. Red Rock Biofuels plans to use also in a better position to market the woody biomass as well as a different FT multiple commercial products created, technology (from Velocys). thus improving the overall economics.

21 www.fulcrum-bioenergy.com/benefits/low-cost- producer/

Biofuels for Aviation | Technology Brief 23 Pyrolysis and hydrothermal liquefaction (HTL) Fast pyrolysis exposes small biomass The commercial production of bio-jet particles of about 3 mm in length to via the pyrolysis route is likely to be heat at 500°C for a few seconds to challenging because biocrudes derived produce a bio-oil with up to 75 wt% from fast pyrolysis contain up to 40% yield (IEA Bioenergy, 2014). Although oxygen, similar to the biomass itself. companies such as Ensyn in Canada This necessitates extensive upgrading have been producing fast-pyrolysis bio- to produce bio-jet, which is typically oils for many years, these have mainly achieved through hydroprocessing. been used in niche applications such as These processing costs, as well as the food flavouring. need for external hydrogen, represent a large proportion of equipment and Energy applications have been production costs (Jones et al., 2009). restricted to heavy fuel oil used in stationary heating, and in power- A further challenge to the generating facilities. Although Ensyn22 hydroprocessing of pyrolysis oils is the recently obtained regulatory approval cost and stability of the catalysts that for RFDiesel and RFGasoline, which are fuel products generated via are required. co-processing in petrochemical refineries, no jet fuel has been produced A potential advantage of the pyrolysis this way. approach to bio-jet production is that it can be done in existing oil refineries, In the Netherlands, BTG has which reduces the need for capital to commercialised the flash pyrolysis build a dedicated facility. technology in its EMPYRO23 project. As of late 2016, however, bio- Similarly, significant savings might oil was used to replace natural be achieved by directly sourcing gas in a heating application in a hydrogen from an oil refinery and, in milk factory. BTG has also been testing the longer term, through using existing possible co-processing of bio-oil in a processing units. petroleum refinery.

22 www.ensyn.com/2015/08/26/ensyn-receives-key- regulatory-approval-for-its-renewable-diesel/ 23 www.empyroproject.eu/

24 Biofuels for Aviation | Technology Brief Co-processing in existing petroleum Although some studies have indicated refineries is considered a key strategy that this method could potentially for upgrading pyrolysis-derived produce the lowest-cost bio- bio-oils, but comes with some technical jet (de Jong et al., 2016), the high- challenges. These include selecting pressure requirements of HTL during the point of insertion, the extent to the production of biocrude will impact which upgrading is required prior to insertion and the disparate types of their potential for scale-up. While catalysts needed for bio-oils compared production of bio-oil via pyrolysis is at with those used in oil refining.a commercial scale, HTL is currently Refinery-insertion strategies should just at the demonstration stage, as be synergistically beneficial but are pioneered by Licella’s Australian plant. likely more technically challenging Although there is a scarcity of reliable than is generally acknowledged technical and economic analyses, a (IEA Bioenergy, 2014). minimum fuel-selling price (MFSP) of USD 3.39 per gallon could be achieved Catalytic pyrolysis or processes such as HTL can produce a bio-oil intermediate when making diesel and gasoline via with significantly lower oxygen content, fast pyrolysis followed by upgrading at less than 10%. That would be easier (Jones et al., 2013). to upgrade to produce fuels, including bio-jet.

Biofuels for Aviation | Technology Brief 25 Biochemical routes to turn biomass into bio-jet fuel Capital expenditure for biochemical convert sugars to larger hydrocarbon routes to bio-jet are projected to be molecules such as isoprenoids and fatty lower than those for thermochemical acids (IEA Bioenergy, 2014). Amyris, routes (IEA Bioenergy, 2014), but that using genetically engineered yeasts, benefit may be offset if the MFSP converts sugars directly to renewable is higher, which is also expected hydrocarbons such as farnesene. (Table 2). In contrast to the more Farnesene can then be upgraded to familiar sugar-to-ethanol fermentation farnesane through hydroprocessing, route to bioethanol, advanced producing SIP. It is also known as the biological routes convert sugars to Direct Sugars to Hydrocarbons (DSHC) less oxygenated and more energy- pathway. It received ASTM certification dense molecules such as longer-chain in 2014, provided it is used in a 10% alcohols like butanol and butanediol. blend with fossil-derived jet fuel. Advanced biological routes can also

Figure 5: Schematic overview: From microorganism to bio-jet fuel with various renewable feedstocks

Plant biomass

Sunlight Lignocellulosics Free sugars, starches and and pectins CO2

Syngas C5 sugars C6 sugars

Cyanobacteria Bacteria Yeasts Algae Synechocystis Zymomonas Saccharomyces Synechoccus Clostridium Pichia E.coli

Lipids, isoprenoid derivatives Ethanol, Butanol and higher alcohols

Upgrade to jet Alcohol to Jet

Adapted from Weber et al. (2010)

26 Biofuels for Aviation | Technology Brief Although butanol, n-butanol and separation, which ranges from 70 g/L isobutanol are oxygenated and thus of butanol to 80 g/L (IEA Bioenergy, cannot be considered to be fully “drop- 2014). in” biofuels, they are less oxygenated and less hydrophilic than ethanol and Biochemical-based bio-jet pathways can be used to produce bio-jet fuel can produce highly reduced through the ATJ pathway. Gevo recently biohydrocarbon molecules such as obtained ASTM certification for its sesquiterpenes and fatty acids based bio-jet fuel produced from isobutanol, on the used microorganism, which which Alaska Air has used in a accordingly decrease the degree of commercial flight. final hydroprocessing required to meet jet-fuel specifications. Even still, The potential to use existing ethanol advanced biological pathways require facilities lies in the ability to replace the more energy and carbon-intensive existing yeasts that produce ethanol metabolic processes than required in with alternative microorganisms that ethanol production in order to decrease could instead make bio-jet. Because feedstock sugars. some of the biological intermediates such as farnesene are quite hydrophobic Given the potential commercialisation they should in theory be more scale, conventional ethanalogenic yeast readily recoverable from the aqueous fermentations could achieve a higher fermentation broths. Nevertheless, order of magnitude than the product the recovery of these molecules from yield for fermentation-derived bio- the fermentation broth has been more jet. Furthermore, biochemical-based challenging than predicted because of bio-jet platforms are relatively pure, intracellular expression of hydrophobic and functionalised long carbon-chain metabolites. For butanol, fermentation molecules can be produced. This is an titers are typically well below the advantage over thermochemical-based concentration that induces phase processes (IEA Bioenergy, 2014).

Biofuels for Aviation | Technology Brief 27 The production of bio-jet would not be butanol (IEA Bioenergy, 2014). The the most profitable use of biochemically market for biochemical drop-in products processed biomass and sugars. Products is highly competitive and growing. Tthe such as carboxylic acids, alcohols and volume of biochemical drop-in products polyols can generate higher profits in the market is expected to increase because there are fewer processing by between 10 Mt and 50 Mt annually steps, lower NADPH requirements, to 2020, which is equal to the current and less hydrogen consumption. markets size of biofuels (Lux Research, Less-oxygenated microbial metabolites 2010; Higson, 2011; Bomgardner, with potential as drop-in biofuel 2012). Incentives will be required for intermediates are already being sold commercial entities to concentrate in the value-added chemicals and on drop-in fuels until the market is cosmetics markets, such as Amyris’s saturated. farnesene and Gevo’s or Butamax’s

Hybrid conversion processes

Hybrid conversion processes can to bio-jet. Another example of a hybrid combine a mixture of the above process is Virent’s aqueous phase methods. For example, the ATJ process reforming. This process uses feedstock can combine biochemical production of sugars potentially derived through alcohol, through fermentation of sugars biochemical conversion of lignocellulosic or conversion of syngas from gasification feedstocks, while synthesis takes place and catalytic conversion of the alcohol via catalysis.

28 Biofuels for Aviation | Technology Brief Preparing for take-off: Capacity and market potential

Though the vast majority of commercial technologies are the two most common volumes of bio-jet fuels are produced technologies. EcofiningTM was designed through the HEFA pathway, the main to maximise the ratio of bio-jet or product in all but one of these facilities is renewable diesel yields, depending on HEFA diesel. Bio-jet production is a small demand. The fractionation of the bio- fraction of total plant capacity (Table 1). jet from other products usually requires Only the AltAir facility in Paramount, a distillation process, which adds California, is the situation there reverse, additional capital and operational cost. with the bulk of production accounted for by bio-jet, and HEFA diesel a Boeing has applied to ASTM for smaller-volume output (Table 1).24 certification of a blend that includes The operational capacity of the HDRD and renewable diesel with jet fuel. world’s current HEFA facilities is about Boeing has tested blends of up to 15% 4.3 bn L/y. Even if all of this capacity of this fuel in a demonstration flight. If were to be diverted to bio-jet production, approved, this pathway could have a significant impact on bio-jet production supply would amount to less than 1.5% capacity because renewable diesel of the world’s jet fuel requirements. with good cold-flow properties could HEFA is typically used as a general term, also be used as a bio-jet component. with HEFA bio-jet or HEFA-SPK used to However, what types of blends might denote bio-jet. As there is some overlap be approved was not yet clear in late in carbon-chain lengths, the bio-jet 2016. One challenge is that diesel fraction within HEFA can also be sold molecules have longer carbon chains as diesel. The nature of the products than jet, which impacts their cold-flow formed are also influenced by the extent properties. Currently, commercial diesel of hydrocracking, which can result in the products are broadly differentiated into formation of smaller naphtha products. summer, winter and arctic fuels. Winter The type of technology used to produce and arctic diesels have improved cold- HEFA fuels can also have an impact flow properties because of blending on the nature and ratio of products with additives or through increased obtained. The NEXBTL and EcofiningTM isomerisation of hydrocarbons. These types of diesels will likely be the most suitable for blending into jet fuel. 24 Light gases are also produced, mainly propane and naphtha. Larger volumes of naphtha are pro- duced when bio-jet is maximised as this involves hydrocracking of diesel range molecules.

Biofuels for Aviation | Technology Brief 29 Table 1: Companies producing HEFA fuels (mainly renewable diesel)

Company Location Technology Feedstock Capacity Status Neste Rotterdam, NEXBTL Vegetable oils, 1.26 bn L/y Operational Netherlands UCO and animal fats

Neste Singapore NEXBTL Vegetable oils, 1.26 bn L/y Operational UCO and animal fats

Neste Porvoo, Finland NEXBTL Vegetable oils, 240 m L/y Operational UCO and animal fats

Neste Porvoo 2, Finland NEXBTL Vegetable oils, 240 m L/y Operational UCO and animal fat

ENI Venice, Italy EcofiningTM Vegetable oils 450 m L/y Operational Diamond Norco, EcofiningTM Vegetable oils, 500 m L/y Operational Green Diesel Louisiana, U.S. UCO and animal fats

UPM Lappeenranta, UPM Crude tall oil 120m L/y Operational Finland Bioverno

AltAir Paramount, EcofiningTM Non-edible oils 150 m L/y Operational California, U.S. and waste Renewable Geismar, Developed High and low 315 m L/y Operational Energy Louisiana, U.S. by Dynamic free fatty acid Group Fuels LLC feedstocks

Emerald Port Arthur, EcofiningTM Vegetable oils 330 m L/y Planned Biofuels Texas, U.S. Construction

Given the operational capacity of the even smaller for FT, with two planned world’s current HEFA facilities, at about facilities with a combined 82 m L/y, and 4.3 bn L/y, supply would amount to another proposed at 1 bn L/y. less than 1.5% of the world’s jet fuel requirements if all facilities produced Current and future foreseen production only bio-jet. Commercial capacity is capacity is difficult to determine as only

30 Biofuels for Aviation | Technology Brief one company, Amyris, produces this using this route.25 The EU, under FP7,26 potential biofuel in sizable quantities, is supporting the development of at its plant in Brotas, Brazil. Due to the two demonstration projects. One will high value of farnesene as a biochemical, produce bio-jet from ethanol using cosmetics ingredient, and lubricant Swedish Biofuels’ technology and the feedstock, most the farnesene that other will produce bio-jet from the lignin is currently produced is sold into fraction of a cellulosic ethanol plant non-bio-jet markets. using Biochemtex’ technology. The former will have a capacity of 10 ML/y. of Although the ATJ pathway received bio-jet, and the latter will be smaller. certification based on Gevo’s isobutanol, there is currently no integrated 25 Gevo’s production of isobutanol and the subsequent conversion to bio-jet took place at commercial facility for bio-jet production different locations. 26 https://ec.europa.eu/research/fp7/index_en.cfm

The operational capacity of the world’s current HEFA facilities is about 4.3 bn L. Even if all of this capacity was diverted to bio-jet production, it would provide less than 1.5% of the world’s jet fuel requirements

Biofuels for Aviation | Technology Brief 31 Jet fuel consumption and future projections In 2014, global consumption of jet fuel Indonesia 2% by 2018, and Israel 20% was 5.4 m b/d (314 bn L/y) (IEA, 2015). by 2025. However, the nearer-term targets Aviation-sector growth is expected to are unlikely to be met, as expansion of increase, and jet-fuel consumption along production capacity has been much with it, however projections of future slower than expected. jet-fuel demand differ. The IAE expects demand to reach 9 m b/d (522 bn L/y) Recent reports have described initiatives by 2040 (IEA, 2015). The ICAO forecasts in the bio-jet arena including IATA’s a range from 496 bn L/y to 691 bn L/y annual Reports on Alternative Fuels (ICAO, 2016) by 2040. This would be an publication (IATA, 2014 and 2016) and increase of at least 58%, with the potential its Sustainable Aviation Fuel Roadmap, for demand to more than double. and the earlier Ecofys report on Biofuels for Aviation. (Ecofys, 2013). The present Over the last few years the aviation review highlights the latest developments, sector has outlined sector-specific GHG subsequent to those reports. emissions-reduction targets, including carbon-neutral growth by 2020 and a 50% reduction in carbon emissions relative to 2005 by 2050 (IATA, 2015). Despite increasing recognition Although there is increasing recognition that bio-jet fuels will be crucial that bio-jet fuels will have to play a to meet targets, there is only significant role in meeting these targets, limited information on the projected volumes required there is very limited information on the projected bio-jet fuel volumes that will be required under these scenarios. The IATA Sustainable Aviation Fuel Roadmap The early initiatives that used to assess (IATA, 2015) lists some of the aspirational the viability of bio-jet use were typically bio-jet goals and targets adopted based on single demonstration flights by some companies, countries and that were supported by airlines or international bodies. For example, the U.S. original equipment manufacturers Federal Aviation Administration aspires (OEMs), and more assessments since to a target of 1 bn gallons (3.758 bn L) of then have helped to establish “proof bio-jet by 2018. of concept’ for bio-jet. Considerations included supply-chain initiatives and Boeing set a target of 1% for 2016, feasibility studies that also addressed while Australia has aimed for 50% by feedstock, technology, distribution and 2050, the EU 2.5 bn L by 2020 and 40% policy issues. by 2050, Germany 10% by 2025,

32 Biofuels for Aviation | Technology Brief Stakeholders now include OEMs, airlines, supporting companies commercialising aviation-industry organisations, fuel bio-jet production include Cathay producers, feedstock producers, airports Pacific, Etihad, Qatar Airways and and facilitators such as SkyNRG. The Etihad.28 predominant trend has been to establish voluntary initiatives at local and regional One high-profile initiative has been the levels to establish bio-jet supply chains U.S. Navy’s launch of its Great Green at specific airports. SkyNRG’s bioport Fleet on 21 January 2016. Although only concept is an example of this type of a 10% blend of bio-jet fuel was used, as initiative. opposed to the 50% target proposed in 2009 seven years ago, the goal of a 50% Several OEMs have been instrumental in the development of bio-jet fuels, “green fuel” remains the Navy’s ultimate 29 with the two leading manufacturers, objective. Airbus and Boeing, making significant contributions. Airbus has developed Policy support is widely recognised programmes in Australia, Brazil, Qatar, as essential if bio-jet deployment Romania and Spain, and has partnered is to be successful. According to the with China’s Tsinghua University and IATA, “voluntary instruments are the China Petroleum and Chemical likely to be most effective when used Corporation (Sinopec) to explore bio-jet in synergy with, or complementary development in China. Airbus has also to, other public instruments” carried out numerous test flights using (IATA, 2015). The Indonesian 27 bio-jet fuels. government’s announcement of a mandate for bio-jet is one example Airlines and commercial-freight of public-policy support that could companies also promote bio-jet fuels, have a significant impact on bio-jet primarily as customers through trial development. However on a global flights or through off-take agreements. Participants in these efforts include basis there have been very limited Aeromexico, Alaska Airlines, British government efforts to develop and Midland, FedEx, Finnair, Gol, KLM, implement the types of policies that Lufthansa, Qatar Airways, Scandinavian have been successful in promoting Airlines (SAS), Southwest Airlines and road-transport biofuels. These include others. Airlines that have invested in research and development and in 28 www.biofuelsdigest.com/bdigest/2015/10/19/the- airlines-whos-doing-what-in-aviation-biofuels/ 29 hwww.navytimes.com/story/military/2016/01/20/ 27 www.airbus.com/innovation/future-by-airbus/ stennis-strike-group-sets-sail-10-percent-beef- future-energy-sources/sustainable-aviation-fuel/ fat-fuel-blend/79054624/

Biofuels for Aviation | Technology Brief 33 mandates, tax incentives and subsidies. limited development and deployment As will be further discussed in the policy of bio-jet. The lack of direct government section of this brief, this low level of involvement might be partially due to government policy support is one of the international nature of aviation and the main reasons why there has been the legal role of ICAO.

34 Biofuels for Aviation | Technology Brief Market prospects Projections are for the biggest increases use. Countries such as Indonesia could in aviation-fuel demand in Asia, Africa, develop bio-jet production capacity Latin America and the Middle East based on domestic production of (IEA, 2015; Boeing, 2015). This market palm oil, instead of exporting the oil expansion will be driven by increased to facilities in other countries, such as passenger and cargo traffic, with the Neste’s in Rotterdam. However, issues developing economies of China and such as sustainability and indirect land- India leading the way. use change must be addressed.

Although bio-jet production in these For advanced bio-jet using regions would be influenced by lignocellulosic or algal feedstocks, supporting policies where applicable, potential challenges as the relevant feedstock availability is also likely to be technologies mature include feedstock a relevant factor. In the same way that availability, cost and sustainability. bioethanol development in Brazil and Facilities based on thermochemical the U.S. was helped by the availability technologies and woody biomass could of sugar and starch, respectively, as be based in regions with an ample supply feedstocks, bio-jet development is likely of feedstock, such as mill and forest to follow a similar trend. As noted, bio- residues, eliminating or minimising costs jet will probably be based in the near to for transporting them. Optimal spots mid-term on oleochemical feedstocks for biochemical technologies using such as oils and fats. Those regions advanced fermentation based on sugars. that have an abundance of cheap oils Jurisdictions where sugars or starches and fats suitable as feedstocks for the are available in large quantities, such HEFA pathway should initially be in a as Brazil and the U.S., will be ideal for better position to establish and expand facilities using advanced fermentation bio-jet production, distribution and pathways.

Biofuels for Aviation | Technology Brief 35 Performance and cost

If Bio-jet fuels are to be used in mass The selling price of the vegetable oil quantities by the aviation industry they feedstocks has historically been higher must conform to strict specifications to than the selling price of diesel and jet be certified under ASTM standard D7566, fuels (IEA Bioenergy, 2014). In April 2016, and their performance will have to be select vegetable oil prices per metric equal to or better than conventional jet tonne were USD 799 for soybean oil, fuel. In some cases, however, it may offer USD 727 for crude palm oil, and USD 811 an improvement to conventional fuel, in for rapeseed. Sunflower oil cost USD 858, part thanks to a lower sulphur content.30 and palm kernel oil USD 1 289.31 UCO, also called yellow grease, was trading The cost of bio-jet is difficult to at between USD 550 and USD 638 per determine, as this is not a readily metric tonne in June 2016.32 Jet fuel available commodity, and contracts in April 2016 cost about USD 400/t.33 for purchase of volumes of bio-jet do Although alternative oil-rich crops such not usually disclose the price. Existing as camelina might overcome potential analyses should be treated with sustainability concerns, the cost of caution, as assumptions will have producing these types of oils is not clear. been made that are not necessarily accurate, resulting in wide ranges for Costs are difficult to determine, cost estimates, such as the common as bio-jet is not a readily one that bio-jet currently costs available commodity, and prices anywhere from two to seven times for purchases by volume are not more. Most analyses rely on estimates usually disclosed based on having multiple plants, which generally overestimate yields and underestimate capital costs, particularly A techno-economic analysis in 2015 for pioneer plants (de Jong et al., 2015). calculated the MFSP for bio-jet via different conversion routes for multiple Although the HEFA technology is plants when using lignocellulosic commercially mature, costs will remain feedstock, but relies on modelling a significant challenge due to the high studies because no actual data is price of the feedstock, as well as available, unlike for HEFA bio-jet availability and sustainability concerns. (de Jong et al. 2015). The two

31 Oils and Fats International, May 2016 Vol 32 (4). 30 www.biofuelsdigest.com/bdigest/2016/06/09/ www.oilsandfatsinternational.com renewable-jet-fuel-why-everything-is-so-up- in-the-air-a-view-from-the-cockpit/?utm_ 32 www.ams.usda.gov/mnreports/lswagenergy.pdf campaign=shareaholic&utm_medium=email_ 33 www.iata.org/publications/economics/fuel-moni- this&utm_source=email tor/Pages/price-analysis.aspx

36 Biofuels for Aviation | Technology Brief lignocellulosic substrates modelled, As these estimates are based forest residues and wheat straw, on European feedstock prices were based on feedstock costs of and infrastructure, costs in other EURO 95 per dry tonne (USD 106) for geographical areas will vary substantially. forest residues and EUR 190 per dry Only lignocellulosic feedstocks were tonne (USD 212) for wheat straw. The modelled, although ATJ and SIP can also difference in feedstock price resulted utilise sugar or starch-based feedstocks. in a broad range of final MFSP values.

Table 2: MFSP of bio-jet fuel based on technical and economic analysis

Conversion MFSP bio-jet produced in multiple plants, Feedstock Process per tonne HEFA (UCO) EUR 1 350 (USD 1 518)

FT Forest residues / wheat straw EUR 1 800–2 650 (USD 2 024-2 980)

HTL Forest residues / wheat straw EUR 900–1 300 (USD 1 012-1 460)

Pyrolysis Forest residues / wheat straw EUR 1 300–1 850 (USD 1 460-2 080)

ATJ Forest residues / wheat straw EUR 2 400–3 500 (USD 2 700-3 935) DSHC Forest residues / wheat straw EUR 4 800–6 400 (USD 5 397-7 196)

Source: de Jong et al. (2015)

The cost to establish a pioneer plant Maximising overall yield of the saleable was assumed to be 50% higher product range will be key to the than establishing multiple plants, economics of any establishment, just as with resulting economies of scale with petrochemicals refineries currently. (de Jong et al., 2015). The study noted Several techno-economic analyses have several potential ways to cut costs, determined capital costs associated such as using low-cost or negative-cost with establishing biofuel facilities. De feedstocks such as MSW. In addition, Jong and others in 2015 reviewed several cost savings can be achieved through studies and normalised the values based co-location, co-processing or using on 2013 and an assumed output of 500 t existing infrastructure, particularly if of fuel per day. These studies are all output includes other products to sell. based on production in multiple facilities.

Biofuels for Aviation | Technology Brief 37 Table 3: Summary of technologies, status and estimated capital costs

Capital cost in millions Conversion Process Status (2013)*

HEFA Commercial EUR 200–644 (USD 265–855)

Gasification - FT Demonstration EUR 327–1 186 (USD 434–1 575)

Pyrolysis & upgrading Pilot / demo EUR 156–482 (USD 207–640)

HTL & upgrading Pilot / demo EUR 273–513 (USD 362–681)

Alcohol to jet (ATJ) Demo EUR 68–72 (USD 90–96) (from ethanol; excludes ethanol production)

Advanced fermentation of sugars Small commercial EUR 292 (USD 388) to hydrocarbons (farnesene)

Ethanol production from agricultural residues (includes pre-treatment, enzymatic hydrolysis Commercial EUR 215–426 (USD 285–566) & fermentation)

Sugar extraction from agricultural residues Commercial EUR 206 (USD 274) (includes pre-treatment & enzymatic hydrolysis)

* Based on normalised reported values from literature for 500 t of fuel per day in 2013. The 2013 exchange rate was used to convert EUR to USD at a rate of EUR 0.753 to USD 1 (de Jong et al., 2015).

The estimated MFSPs indicate that bio-jet is likely to cost significantly more to produce than fossil jet fuel, highlighting the crucial role of policy makers to bridge this price gap. The IATA said in 2015 that sustainable aviation fuels are approximately two to seven times more expensive than fossil jet fuel (IATA, 2015). However, this gap is likely to drop due to investment in research and operator experience.

38 Biofuels for Aviation | Technology Brief Potential and barriers

Life cycle analysis of bio-jet fuels shows operational; and Oslo’s Gardermoen they can reduce emissions by at least airport becoming the first to provide 50% when compared with fossil jet fuel, bio-jet through its hydrant system and by as much as 95%. (IATA, 2015). rather than in a segregated supply. The reduction rate varies according to More commercial facilities are under the combinations of feedstocks and construction, and several new pathways conversion technologies that are used. are on the verge of receiving ASTM Their continued development and use certification, expanding the potential should help the aviation sector achieve commercial supply of bio-jet fuel. However, the market for bio-jet has its climate change-mitigation goals. been slow to develop, and remains Examples of development in bio-jet available only in small volumes thanks include technologies that are already primarily to high costs and a lack of commercial; the first dedicated public-policy support, but also because bio-jet facility, AltAir Fuels, which is now of technical challenges.

Biofuels for Aviation | Technology Brief 39 Policies to promote bio-jet production and consumption Policy support has been instrumental Policies at international level – Policies in the global development of road- that have encouraged the development transportation biofuels, such as in Brazil, and use of biofuels for road transportation the U.S. and the EU. The two main policy use have been established predominantly drivers in those cases were energy at a national or regional level, but the security and climate-change mitigation. international nature of aviation requires Policies have been predominantly approaches both international and developed at a national level, primarily national. At the international level, the ICAO based on regulatory instruments such as plays a major role in global development blending mandates or renewable volume of the aviation sector. It works with obligations. Measures implemented 191 member states and global aviation include subsidies, tax credits, grants for organisations to develop international research and development, and loan standards and recommended practices guarantees for building pioneer facilities. (ICAO, 2016). The member states are These policies led to the development obliged to reference those standards when and commercialisation of the current global biofuels industry, which produces developing their own legally enforceable over 120 bn L/y of bioethanol and national civil-aviation regulations. biodiesel.

40 Biofuels for Aviation | Technology Brief In 2016, after many years of debate and fuel emits just over 3 t of carbon, which planning, ICAO has agreed on a new currently trades at about EUR 5/t of

GMBM, with a goal of implementing CO2 under the EU ETS. Thus, paying the these measures by 2020. Such market- extra EUR 15 per tonne is considerably based mechanisms would provide the cheaper than purchasing bio-jet at two basis to set a price on emissions, seen to seven times the price of jet fuel. While as the primary means for emission overall carbon-emissions reductions reduction at the national and regional might be achieved through the purchase levels. GMBMs have been proposed as a of offsets, this may not stimulate bio-jet way to bridge the time gap, by limiting development unless the price of carbon carbon emissions while bio-jet fuels and is significantly higher and additional other technologies are developed. policies are used. The extension of national and regional At a national level bio-jet for domestic policies to international aviation will flights could be encouraged through initially be limited to the EU, with other various policies, but the promotion jurisdictions applying carbon taxes of bio-jet for international flights will to domestic flights only. A sector- likely only be stimulated via incentives based policy approach for the whole rather than penalties. Commonly used industry has been emphasised to ensure incentives such as tax credits will not competitiveness between airlines work because fuel for these flights is by maintaining a level playing field. typically not taxed, whereas fuel for The GMBM could achieve significant domestic flights is often taxed. emissions reductions as the fuel Policies to bridge the price gap efficiency of aircraft improve34 and as between bio-jet and conventional bio-jet developments expand. However, jet fuel – Types of policy support that whether these measures will serve as a could work for bio-jet could come from major stimulus for bio-jet development the biofuels sector, where incentives remains to be seen. As stated by Hind, have been an effective tool. Currently “Even adding the carbon cost to the price only the Netherlands and the U.S. have of jet fuel, it is far more economically implemented policies that promote bio- advantageous to burn regular fuel and jet production and use. Indonesia has pay the carbon penalty than to switch to announced a bio-jet mandate, which has biofuel.” (Hind, 2014). One tonne of jet yet to be implemented.

34 Another important policy at ICAO level is the

recently agreed CO2 standard for aircraft.

Biofuels for Aviation | Technology Brief 41 The Netherlands offers an incentive for of renewable diesel for the same RIN biofuel development through its bioticket incentive. Renewable diesel is easier system. This policy was extended to bio- to make and sells at a higher price, jet in December of 2012 (Hamelinck et al., making it considerably more attractive 2013). For each volume of biofuel sold, to produce. a company receives a bioticket, which The January 2016 multi-stakeholder can be traded between companies to initiative to deliver bio-jet via the airport fulfil their obligations under the EU hydrant supply at Oslo’s Gardermoen Renewable Energy Directive (RED)35 or airport is an example of successful Fuel Quality Directive (FQD).36 The value support for bio-jet through policy. The of the bioticket is based on the biodiesel Norwegian government offered bio- market and there is not a special price jet users a 25% reduction in landing for bio-jet. In addition, the EU has a fees, an exemption of biofuel from the system of double counting for biofuels Norwegian carbon tax that is applied from waste in the national mandate to domestic flights, and an exemption under the RED. or offset from the EU Emissions Trading Scheme for the amount of bio-jet used.38 In 2013, the U.S. Environmental Protection Agency announced that Specific and additional policies are likely bio-jet could qualify under the RIN to be needed to support advanced bio- system in categories D4, D5 or D7.37 jet fuels that are made from lignocellulose The generation of RINs can be an or algal materials rather than from oleochemicals. This will be particularly attractive incentive as the current value important in countries that currently only of potential RINs for bio-jet is more than promote conventional biofuels such as USD 0.80 per RIN for each per gallon ethanol and biodiesel. Although specific of fuel. incentives for bio-jet need to be developed, This makes the U.S. a favourable market bio-jet should not be incentivised to the for production and import of bio-jet as exclusion of the other products that are part the RIN value can help bridge the price of a fuel blend, as processes that maximise gap between bio-jet and fossil-derived the production of bio-jet are likely to be jet fuel. However, in this particular case, less economic overall. Thus, while advanced bio-jet production and development biofuels deserve promotion, additional will likely compete with the production incentives are worth considering where bio-jet production might earn a premium.

35 https://ec.europa.eu/energy/en/topics/ renewable-energy/renewable-energy-directive 36 http://ec.europa.eu/environment/air/transport/ fuel.htm 37 www.platts.com/latest-news/petrochemicals/ washington/feature-bio-jet-backers-see-us-rins- 38 www.mb.cision.com/Public/290/9900823/ eligibility-21015154 ba28a5848c131b4d.pdf 42 Biofuels for Aviation | Technology Brief Using mandates to create bio-jet pioneering projects has proven difficult demand – Mandating use is a common to obtain, particularly at a time of low policy approach to boost demand oil prices. There are several examples and develop markets for biofuels. of such policies in the EU and the Although Indonesia has proposed the U.S., including by the U.S. Department of implementation of a bio-jet mandate, Defence. Airlines such as British Airways, a technically feasible approach based Cathay Pacific and United Airlines have on the HEFA pathway, this might be also invested in bio-jet companies. premature and somewhat risky without certainty that supply can meet projected Supply-chain policies – As well as using demand. Previously in the U.S., for policies to enhance the production and example, when the Environmental use of bio-jet fuel, the entire supply chain Protection Agency (EPA) mandated from feedstock to bio-jet distribution the use of cellulosic ethanol, suppliers needs development. Example initiatives could not provide enough to meet the include the EU ITAKA project and mandated demand. Project Solaris, which are attempts to One advantage that Indonesia has is incentivise supply-chain development. the country’s availability of palm and Analysis highlights the sensitivity of the palm kernel oil as feedstock for the MFSP to feedstock cost, so improving lower-risk and relatively mature HEFA the efficiency of feedstock production pathway. However, the main challenge and the development of efficient supply for Indonesia is that even with local chains will help reduce costs throughout feedstock the cost of producing bio-jet the process. is currently more than double the price Industry and customers – Industry of producing fossil jet fuel. Thus any and customers can also play their bio-jet mandate will have to work in combination with policies that create part in helping expand the production incentives and subsidies. and use of bio-jet fuels. For example, KLM’s corporate program39 and the Fly Policies that support bio-jet Green Fund40 are some of the corporate commercialisation – Helping investors programmes that encourage customers past the “valley of death” stage of to cover the price premium of using commercialising the technology will be bio-jet fuel. needed, as financing for these types of

39 www.klmtakescare.com/en/tags/biofuel- programme 40 www.flygreenfund.se/en

Biofuels for Aviation | Technology Brief 43 Conclusions

Increased use of sustainably derived bio- Without specific interventions and jet is essential for the aviation sector incentives directed towards bio-jet to meet its carbon emissions-reduction production and use, current policies in goals. Currently the vast majority of bio- jurisdictions such as the U.S. will favour jet fuels are derived from oleochemical the production of renewable diesel over feedstocks and use the HEFA pathway. bio-jet. This will likely remain the main conversion The ongoing high cost of making route over the next five to 10 years, as conventional bio-jet fuels will be methods using biomass, lignocellulosic problematic, as airlines unable to pay and algal sources, and other advanced a premium for fuels that are currently bio-jet technologies, are still maturing. two to seven times more expensive Thermochemical technologies are the than fossil-derived jet fuels. Even if the most likely to provide the large volumes current total global capacity for HEFA of advanced bio-jet required, partly fuels of all types were to be used only for because the intermediates produced by bio-jet production, supply would be less biochemical routes to bio-jet are worth than 2% of the global aviation sector’s considerably more in chemical, lubricant current biofuel needs. Thermochemical and cosmetic markets. based technologies using FT are Although a number of commercial considered closest to commercialisation, facilities in operation worldwide can and construction of two facilities is produce HEFA bio-jet, they were expected to begin in 2016. Other efforts primarily established to make renewable to commercialise similar technologies diesel. Only one facility, AltAir Fuels, is have been complicated by high capital primarily dedicated to bio-jet production. costs and technical challenges.

Without specific interventions and incentives directed towards bio-jet production and use, current policies in jurisdictions such as the U.S. will favour the production of renewable diesel over bio-jet

44 Biofuels for Aviation | Technology Brief As the development of both encouraging initiatives have been conventional and advanced bio-jet has developed by various stakeholders been slower than expected, near-term there will be an ongoing need for production targets, such as those set by effective policies to encourage bio-jet the EU, appear unlikely to be met. The development and use. The international aviation sector will also face challenges nature of aviation will likely require global in meeting its target of carbon-neutral coordination by policy makers, requiring growth by 2020. “To reach the stated the involvement of organisations such as ICAO. carbon-neutral growth would require a stronger uptake of alternative low- Help from policy makers is required to carbon fuels, of which advanced biofuels help bio-jet along the same evolutionary currently appear to be the only option path of bioethanol and biodiesel, in that can comply with the very specific which a combination of technology requirements of the airline industry, advances and supporting policies led including fuel quality,” according to the to the establishment of a supply chain IEA. (IEA, 2015). and commercial production, even at a time of very low fossil fuel prices. For 2050 carbon-emissions reduction Aviation’s dependence on bio-jet as a targets require the production and use primary means of reducing its carbon of considerable volumes of sustainably emissions will undoubtedly be pivotal, sourced bio-jet. Although several as “necessity is the mother of invention”.

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