Fifteen US and non-US airlines, under the umbrella of the Air Transport Assn., entered into MOUs with AltAir Fuels LLC and Rentech Inc. for the purchase of up to 325 million gal. of alternative fuel. The new fuel, which includes second-generation biojet and biodiesel, could begin flowing as early as the fourth quarter of 2012.
The deal is the single largest agreement of its type and will account for 10%-15% of the fuel used at Seattle-Tacoma International, according to Tom Todaro, CEO of AltAir. "We commend ATA and its member airlines' commitment to reducing carbon emissions and the leadership role they have taken in the airline industry," Todaro said. "Our camelina-based fuels will reduce emissions while providing farmers across the United States with additional revenue sources, creating green jobs."
Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Deutsche Lufthansa, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and US Airways signed MOUs with both producers. In addition, Alaska Airlines and Hawaiian Airlines signed the MOU with AltAir Fuels and AirTran Airways the one with Rentech.
According to ATA, the AltAir project contemplates the production of approximately 75 million gal. per year of jet and diesel fuel derived from camelina oils or comparable feedstock. The camelina oil will be converted into both renewable jet fuel and diesel and blended with petroleum-based jet fuel and diesel at a new facility to be located alongside the existing Tesoro oil refinery in Anacortes, Wash. It then will be delivered to Sea-Tac, where it will be used by airlines in the consortium as well as to power heavy machinery, trucks and buses owned and operated by the Port of Seattle.
AltAir has chosen processing and refining technology developed by UOP, a Honeywell company, which has produced biojet fuel for various test flights and military contracts during 2009. The facility will be capable of producing 100 million gal. per year and is expected to begin operations in 2012. The camelina oil will be sourced from Montana-based Sustainable Oils, which has the largest camelina research program in the US and production contracts with farmers and grower cooperatives across the country.
Tesoro Chairman, President and CEO Bruce Smith said, "As an independent manufacturer of fuels, Tesoro is committed to finding new and competitive sources of oil to meet the changing fuel needs of our customers. We at Tesoro are excited to be involved with this innovative technology using domestic, sustainable camelina oil to produce next-generation jet and diesel fuels using the existing assets and expertise that make our company successful."
The Rentech project in Adams County, Miss., will produce approximately 250 million gal. per year of synthetic jet fuel derived principally from coal or petroleum coke, "with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as feedstock." The first shipments from Rentech are expected in late 2014.
According to Todaro, the camelina-sourced biojet and green diesel will help airlines and Sea-Tac reduce carbon emissions "by about 15%, resulting in a decrease of more than 12 billion pounds of carbon over 10 years. . .We look forward to replicating this model in other parts of the country and the world in the coming years."
Camelina-based jet fuel is the most heavily tested and proven renewable fuel feedstock, having powered two commercial aviation test flights, at JAL and KLM, in 2009. In addition, the US military has performed ground engine tests on camelina-based jet fuel in preparation for test flights planned for spring 2010.
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