Environmentally Friendly Alternative Fuels Critical to Aviations Future Future of Aviation Advisory Committee (FAAC) Subcommittee on the Environment August 10, 2010 Richard L. Altman Executive Director, Commercial Aviation Alternative Fuels Initiative (CAAFI) www.caafi.org Aviation Biofuels – Multi-year History CAAFI Formed 2006 “(The) U.S. aviation industry is eager for an entirely new fuel dynamic and will be an enthusiastic purchaser “ ……..Letter dated 1/16/09 to President Elect Obama New Sustainable Dynamic Economic Need F Gasoline Jet < 10% 30 25 Improve Fuel Fraction Million bbl per day Diesel 20 U.S. Consumption Total Imports 15 70% 63% 10 5 U.S. Production 2005 0 1975 1985 1995 2005 2015 Enhance Supply Security Reduce Crack Spread 3 New Sustainable Dynamic Environment Need 120 Data for 50 Largest U.S. Airports 100 80 Nonattainment 60 40 20 0 Ozone Air Quality Global Climate PM 2.5 Reduce PM 2.5 Contain CO2 Growth CAAFI - Who We Are 14 Aircraft, engine, subsystem OEM’s 21 Airlines, Exec Jets, Military, airport orgs. Aerospace Industries Association Airports Council International – North America 3 International Finance 15 Think Tanks, Consultants 8 Universities, FAA Center of Excellence Federal Aviation Administration 17 government agencies / labs Air Transport Association 4 Oil service providers 45 fuel producers 350 Sponsors/Stakeholders From All Continents * Actual attendance at 9/30/09 meeting 230 people, 125 entities CAAFI/FAA Leveraging Government Partners COMMERCIAL AVIATION • 10X USAF fuel market • Multi-year procurement and hedging fuel purchasing •oversight of certification via ASTM • Concentrated Airport Distribution (80% of fuel to 35 locations) • Single global environmental framework via ICAO (U.N.) – FAA is U.S. Representative • R&D Resources via NASA, FAA (CLEEN), Many Commercial teams DOD/USAF • Self contained development, certification, procurement. • R&D Fuels research assets at via AFRL • Initial Fit for Purpose testing via AFRL • Section -526 LCA compliance with DOE • Certification for Synfuel via Mil Spec • Initial purchases of synfuels to verify production Scale up. CAAFI – How We Operate Facilitate Maximum Opportunity “Flow-up” Focus and Communicate Requirements “Flow Down” Deploy Develop DISTRIBUTORS / FBO’S FUEL PRODUCERS FEEDSTOCK SUPPLIERS 2009 Aviation Achievements • First Major Aviation Fuel Qualification in 20 Years passed – ASTM D7566! • Four flight programs of Biofuels • ICAO Accepted Best Practices - Fuel Readiness Level risk management. - CO2 LCA Analysis Principles • Four Commercial projects formed Winner 2010 Air Transport World Joseph S. Murphy Award for Industry Service! 2010 Off to Excellent Start • Hydrotreated Renewable Jet (HRJ/ Bio-SPK) tracking to 12/10 ASTM Approvals (Jan. - June) • White House recognition of Aviation as lead customer for Biofuels (Feb.) • FAA/DESC “Single Fuel Buyer” Alliance (March) • Greatly expanding the scope of potential supplier discussions (April, May) • First Quantitative Jet Fuel Carbon LCA (PARTNER) leads aviation centric impact quantification (May) • “Farm to Fly” with USDA announced (July) “One Buyer” United Aviation Exhibit at Farnborough Air Show (July) • Going Forward Approach/Challenges • Accelerate Development and Certification • Mechanisms for Rapid Deployment and Quality Assurance Camelina Rotation Crop • Environmental Certainty and Crediting (Carbon and PM2.5) • International Harmonization and Cooperation Fiberized Sweet Sorghum Accelerated Development / Certificaton In Process Issue / Challenges • Execute Fuel Readiness with USDA/DOE/DOD to one roadmap Current FAA Advanced Fuel Programs is one year Congressional Plus up • Increase Number of processes and feedstocks qualified • Implement “Feedstock Readiness Risk Management (FERL) to Match Fuel Readiness CAAFI Certification Timing Targets and Status Year Fuel Type Status 2009 - 50% FT Synjet blends including biomass/coal/gas - Approval executed September 09’ under ASTM D7566 2010 - 50% HRJ Synjet Blend - Currently being balloted…12/10 Approval target 2013.4 - Other Biofuel process blends - Fermentation Processes from sugar and Cellulosic material - Catalytic Processes processes from sugar and cellulosic material - Pyrolisis from cellulosic material. 12 Rapid Deployment / Quality Assured In Process: Issues/Challenges • Initial MOU’s, intent to execute Purchase agreements, signed • Financial Support inadequate: - One year funding of $1/gallon introductory credit - 80% Loan guarantees for production facilities - 5 year max. purchase agreements for government buyer • Many Success Models Being Pursued at State Level • “Top Down” regional studies (“farm to fly”), tools development • Quality Assurance targeted with Congressional “Plusup” • Quality Program multi-year to assure success. Multiple Success Models (most promising) * airline/producer agreements ** study proposals or Pilot Plants California* Florida ** Georgia Hawaii** Illinois** Michigan** Minnesota** Mississippi* Ohio** New York** North Carolina North Dakota** Pennsylvania** Oklahoma Tennessee** Texas** Washington* Planning & Tools Developments Tool Suite Available or in process • ACRP 02-07 Fuel Cost /benefit (complete) • ACRP 02-18 Airport / Supply chain handbook • ACRP 02-23 PM 2.5 Airport Priorities • Carbon Neutral Growth Scenario Analysis • Next Gen Insertion Optimization Tool Projects to Begin Soon • “Farm to Fly” Regional Top Down analysis • ACRP Multi-Modal Assessment project • USAF / CAAFI “Biofuels Summit II” with USDA with USDA regions. • Feedstock Readiness Level Risk Management Construct under USDA / FAA MOU Environmental Certainty / Crediting In Process Issues and Challenges • DOE / USAF carbon LCA (sec -526) Compliance Model (with FAA/EPA) • Crediting benefits fo Purchaser under comingling • PARTNER (MIT) / FAA Aviation Specific Carbon Life Cycle Analysis • Air Quality PM 2.5 measurement and analysis process gains • Examination of Verification Process candidates • How will Renewable Index Number process be applied in RFS-2? • Slow development of Aviation specific Particle modeling tool • Will Aviation Specific Issues have priority at EPA (we’re 2% of GHG)? “Ground to Wake” Carbon LCA Executed by DOE / USAF with FAA/MIT and EPA Aviation Specific LCA Compatible International Planning In Process Issues and Challenges • EC Interchange and Contributions with CAAFI Teams • Taxes (ETS) vs. Environmental friendly fuel incentives • Leverating strong Independent Partner Assets with E.C. • Renewable quotas vs. carbon neutral growth • U.S. Cooperative • Specific proposals for model difficult to emulate areas of cooperation owing to member state differences in EC • Broad Participation in the Roundtable on • “Opportunity cost”, Sustainable Fuels, Air time penalties EC/US Transport Action Group negotiations (ATAG) Europe/U.S. Have Strong Partner Assets • Industry Partnerships – e.g. CFMI, IAE, P&W/MTU • Significant standing (FAA/EU) dialogue • EU / CAAFI program links now • Shared contractors/processes • Similar approach to ICAO (U.N.) (2009 common goals/methods ) Environment Friendly Aviation Fuels? • Aviation Positioned on “Cutting Edge” to be high visibility“First Mover” • Pathways / roadmaps to success established /recognized • Challenges / Remedies well understood • U.S. CAAFI Public / Private Coalition global model