Airlines opt for ‘green’ aviation fuel

According to the Air Transport Association of America Inc., the industry trade organization for leading United States airlines, a core group of airlines have signed memorandum of understanding with alternative fuel producers AltAir Fuels L.L.C. and Rentech Inc.

Twelve airlines from the United States, Canada, Germany and Mexico have signed the agreement with both producers: Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and U.S. Airways. Additionally, Seattle-based Alaska Airlines and Honolulu-based Hawaiian Airlines signed a similar agreement with AltAir fuels, while Orlando-based AirTran Airways did the same with Rentech.

The agreement with AltAir involves the purchase of up to 750 million gallons of camelina-based renewable jet fuel and diesel.
The renewable fuel would replace about 10 percent of the petroleum fuel consumed annually at Seattle-Tacoma International Airport, reducing carbon emissions by about 14 billion pounds over 10 years. The fuel is to be produced at AltAir’s new facility at its existing Tesoro oil refinery in Anacortes, Washington. The facility will have a capacity of 100 million gallons per year and is slated to begin operations in 2012.

Camelina oil will be sourced from Montana-based Sustainable Oils, which has the largest camelina research program in North America and production contracts with numerous farmers and grower cooperatives.

AltAir has chosen refining technology developed by UOP L.L.C., a Honeywell company, which has already produced biojet fuel for various test flights and military contracts in 2009.

Meanwhile, the non-binding memorandum signed by the airlines with Rentech will serve as a framework for a future definitive supply agreement for certified jet fuel produced at the company’s proposed synthetic fuels and power facility in Adams County, Mississippi. Called the Natchez project, the facility will have a synthetic jet fuel production of approximately 250 million gallons per year.

Rentech’s RenJet fuel is based on the Fischer-Tropsch process. Fuels based on this process are the only alternative jet fuel currently certified for use in commercial aviation at up to a 50-50 blend with traditional jet fuel. RenJet is said to have a lower carbon footprint as well as lower regulated emissions compared with traditional jet fuel.

The Natchez project has the potential to contribute significantly to domestic energy security and economic growth within Mississippi and surrounding regions. The proposed facility can provide a significant supply of synthetic jet fuel that meets or exceeds existing fuel standards in quality and emissions.

A recent economic impact study completed by Alcorn State University concludes that the Natchez project would create over 2,100 direct jobs and over 3,400 indirect jobs during the construction phase. Once operational, the facility is expected to create over 400 high-paying direct jobs and over 3,200 indirect jobs, the study adds.